DBP reports lower net income in first quarter

Development Bank of the Philippines (DBP) reported lower income in the first quarter, as it increased provisioning for credit losses.

In a statement, the state-run lender said it saw its net profit slip 15.5% to P1.09 billion in the January to March period, from the P1.29 billion booked in the same period last year.

DBP attributed the lower net income to “higher provisioning for credit losses consistent with the bank’s objective of maintaining portfolio quality and in compliance with new regulations.”

Despite this, DBP boosted its development lending activities during the first quarter as it released P223.24 billion in loans to borrowers, 16.86% higher yearon-year.

The bulk of the loan releases went to infrastructure and logistics at P83.93 billion. This was followed by loans to government owned and controlled corporations as well as government units (P63.8 billion), agriculture (P40 billion), social services (P31.7 billion), micro, small and medium enterprises ( P16.4 billion), and environment (P16 billion).

DBP President Cecilia C. Borromeo said the increase in the bank’s loan portfolio was due to the establishment of lending groups and centers nationwide, streamlining client servicing, and loan processing.

“Our newly created provincial lending groups are proving to be effective channels for funding development projects in the countryside,” Ms. Borromeo was quoted as saying in the statement.

Earlier this year, the lender created seven lending groups and opened 22 lending centers across the country to fast-track the lending application process, leaving its 125 branches focusing on deposit-generation activities.

Meanwhile, DBP’s deposit base rose by 32.5% to P428.5 billion during the first three months of the year, from the P232.3 billion booked in a comparable year-ago period.

According to Ms. Borromeo, the higher deposit base was due to the newly opened branches across the country.

In the first quarter, the bank installed 81 new automated teller machines (ATM), nearly half of its target of 200 new ATMs this year.

“Out of the number, 69 ATMs were installed in provincial sites, in line with our commitment to bring banking services to the underserved areas,” Ms. Borromeo noted.

As of end-May, the bank’s total number of ATMs totalled 710 nationwide.

Overall, the bank’s gross income grew 9% in the first quarter to P5.77 billion from the P5.29 billion tallied in the same period last year. Net worth, meanwhile, grew to P47.8 billion by 3.49% from the P46.19 billion last year.

Ms. Borromeo said DBP will broaden its branch network this year by opening 10 new branches while expanding its ATM network.

Based on the latest central bank data, DBP was the eighthbiggest commercial bank in the country in asset terms as of end2017 with P597 billion. —