State-owned Development Bank of the Philippines continues to broaden its support for the developmental projects of key economic sectors with P414.72-billion in total loans to borrowers as of end-March 2021, up 12 percent from P371.01 billion recorded in the same period last year, a top executive said over the weekend.
DBP president and chief executive Emmanuel Herbosa said 53 percent or P218.65 billion of the loans went to infrastructure and logistics projects; followed by loans to social services and community development initiatives, P82.56 billion; environmental projects, P44.72 billion; and micro, small and medium enterprises, P32.79 billion.
“The increase in loans to priority sectors reflects the bank’s firm commitment to ensure the steady and gradual recovery of the national economy, despite the looming uncertainties of the current public health emergency,” Herbosa said.
DBP, the sixth largest bank in the country in terms of assets, was designated as the country’s Infrastructure Bank by the government. It has a branch network of 129 full-service branch offices, including 11 branch lite units situated mostly in underserved and far-flung areas of the country.
Herbosa said DBP’s total assets grew by a hefty 45 percent to P1.10 trillion as of the first quarter this year compared to the same period in 2020, attributed mainly to intensified deposit-taking activities, higher investments and deposits to the Bangko Sentral ng Pilipinas.
He said overall deposits grew a robust 57 percent to P879.83 billion in the first three months of the year from P559.68 billion recorded in the same period in 2020, driven by renewed public confidence in the stability of DBP as a strong and stable government financial institution.
“For the first three months to March, DBP’s total equity grew by 26 percent to P76.64 billion from the previous year’s P61.1 billion, caused principally by the P12.5-billion capital infusion from the national government under the Bayanihan to Recover as One Act (Bayanihan 2) coupled with increased retained earnings,” Herbosa said.
The government’s capital infusion was mobilized largely through the bank’s DBP Rehabilitation Support Program on Severe Events, which provided credit assistance to about 29 borrowers amounting to P6.4 billion while restructuring loans of 41 borrowers with a loan portfolio of P5.7-billion. Under the DBP RESPONSE MSME Recovery Program, the bank also provided assistance to 13 borrowers with total loan approvals of P2.3 billion.
Herbosa said DBP’s net income in the first quarter of the year reached P550 million, down by 62 percent fromP1.46 billion registered in same period last year, due to higher operating expenses, income taxes and lower net interest income.
He said given the positive socio-economic outlook for the rest of the year, DBP will continue to capitalize on its hefty deposit base, its additional equity from Bayanihan 2 and its solid fiscal position to continue to provide sustained support to both the government and various key industries as the country slowly adjusts to the challenges and demands of the new socio-economic environment.
“We shall continue to leverage on our recent financial gains such as being a trillion-peso bank and utilize our expanded asset base to create a myriad of viable and sustainable set of opportunities for our clients and for our fellow Filipinos,” Herbosa said.
