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HomeAdvertisementsDBP net income soars 50%, top P5.6 billion

DBP net income soars 50%, top P5.6 billion

State-owned Development Bank of the Philippines (DBP) full-year net income surged by 50 percent in 2022 reaching P5.61-billion compared to the P3.74-billion that it earned in 2021, fueled largely by expanding its lending activities as a result of the full reopening of the local economy, a top official said.

DBP President and Chief Executive Officer Michael O. de Jesus said the rise in the Bank’s net income is attributed to increase in loan volume and interest income combined with prudent management of interest expense in spite of the rise in loan loss provisioning.

“This resurgent financial performance of DBP enhances its inherent strong capacity to support the National Government’s goal of promoting sustainable and equitable economic growth in the country, through the provision of vital financial support to various socio-economic initiatives, particularly on infrastructure development,” de Jesus said.

DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises (MSMEs); the environment; and social services and community development. It has a network of 132 branches and 15 branch lite units.

During the past few years, DBP heightened its role as an infrastructure bank, devoting much of its resources to strategic industries that have higher economic multipliers and generate wider economic opportunities such as road networks, transportation, energy, water, housing and healthcare.

De Jesus said the Bank’s total loans grew 12 percent to P527-billion, from the P469.40-billion recorded in 2021, with the bulk of releases amounting to P297.14-billion channeled to projects in infrastructure and logistics sector which represent 56% of its total loan portfolio.

He said DBP’s outstanding loan portfolio in 2022 amounted to P105.91-billion for projects under the social infrastructure and community development sector, and P70.04-billion for loans to other developmental projects which include financial and insurance activities, manufacturing, wholesale and retail trade, accommodation, and food services.

“DBP’s outstanding loans for environment-related projects totaled P54.62-billion, P32.14-billion for the MSME sector, and about P45.58-billion for projects in the agriculture sector in line with the food sufficiency program of the National Government,” de Jesus said.

DBP Officer-in-Charge for Operations First Vice President Christine G. Mota said DBP’s increased net profit was driven by the P4.22-billion or about 18% increase in gross margin, despite credit loss provisioning of P5.9-billion.

Mota said the Bank’s income before provisions stood at P12.5-billion, showing a hefty 44.4% increase from the P8.66-billion recorded in 2021.

“For 2022, DBP substantially exceeded its net income target of P3.85-billion by 46%, which attests to the Bank’s lofty position as one of the most financially stable government financial institutions in the country,” Mota said.

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