State-run Development Bank of the Philippines, the eighth-largest lender in terms of assets, said net income in the first half rose 12 percent to P3.1 billion from P2.76 billion a year ago on the strength of its core businesses.
DBP president and chief executive officer Emmanuel Herbosa said the improved fiscal position of the bank put it in a prime position to support the various growth initiatives of the Duterte administration.
“The remarkable financial performance of DBP has fortified its stance and resources to fund the priority development programs of the national government,” Herbosa said in a statement.
DBP lends to strategic growth sectors such as infrastructure and logistics; micro, small and medium enterprises; social services and community development; and the environment.
Gross loan portfolio increased 19.8 percent to P368.33 billion from P307.47-billion in the previous year.
“Total assets grew to P667.91-billion from the P617.87-billion last year and net worth increased by 16.33 percent to P56.78-billion,” Herbosa said. “Our capital adequacy ratio stood at 14.03 percent, which is higher than the industry average of 12.12 percent.”
DBP expanded its deposit levels to P464.83 billion in the first six months from P431.65 billion reported in the same period last year, driven by the aggressive marketing and financial inclusion initiatives undertaken through its expanded branch network. DBP has 137 branches that include 10 branch-lite units that cater to underserved and underbanked areas in the country.
Herbosa underscored DBP’s continued support to strategic sectors of the economy such as the infrastructure and logistics sector, which received nearly P143-billion in funding assistance.
“Bulk of the funding went to projects in key industries like energy, water resources, manufacturing, transportation, construction, and manufacturing,” he said. He added most of these projects are located in Davao, Central Visayas, Calabarzon, Central Luzon, and the National Capital Region.