State-run Development Bank of the Philippines, the eighth-largest lender in terms of assets, said Thursday net income rose 13 percent in the first nine months to P4.49 billion from P3.98 billion a year ago, driven by the robust growth of its lending business.
DBP president and chief executive Cecilia Borromeo said the bank’s financial performance was driven by the robust growth in lending activities and revitalized branch operations.
“DBP has surpassed most of its fiscal targets for the year, and at the same time, remains financially strong to support the various development initiatives of the government,” she said in a statement.
DBP is the eighth largest bank in the country in terms of assets and is the designated infrastructure bank by the Duterte administration.
The bank provides loans to four key sectors of the economy”•infrastructure and logistics; micro, small and medium enterprises; social services and community development; and the environment.
Borromeo said DBP’s net income represented a 111-percent realization rate of its nine-month target of P4.06-billion.
She said the bank already realized 81 percent of its annual target of P5.56-billion for the year.
Gross income reached P18.85 billion in the first nine months, up from P16.54 billion a year ago, as total assets jumped 13 percent to P632.93 billion from P557.84 billion.
DBP’s capital adequacy ratio reached 14.51 percent, higher than the industry average of 10 percent, while common equity Tier 1 Ratio, which consists mostly of common stock, was recorded at 10.96 percent.
DBP’s loan portfolio hit P250.3 billion, which is 98 percent of its year-end target of P256.6 billion.
New loan approvals amounted to P85.9 billion, or 144 percent more than its target of P59.6-billion.
“By priority thrust, the infrastructure and logistics sector received the biggest chunk of DBP assistance for the first three quarters of 2018 with a total loan portfolio of P104.5 billion which is P4.5 billion more than our year-end target of P100-billion,” Borromeo said.