DBP income drops 15% to P1.1B in Q1

The net income of staterun Development Bank of the Philippines (DBP) dropped 15.5 percent to P1.09 billion in the first quarter from the P1.29 billion in the same period last year, a top official said.

In a statement, DBP president and chief executive officer Cecilia Borromeo said the bank’s net income declined due to higher provisioning for credit losses, consistent with the bank’s efforts to maintain portfolio quality and in compliance with new regulations by the Bangko Sentral ng Pilipinas (BSP).

Nevertheless, Borromeo said the bank remains on track to achieve its target this year. The BDP is targeting to raise P5.55 billion in net income this year, up from the P5.1 billion achieved in 2017.

According to Borromeo, the DBP’s gross income in the first three months grew nine percent to P5.77 billion from P5.29 billion in the same period in 2017.

Its net worth grew 3.49 percent to P47.8 billion from P46.19 billion last year.

Total deposits during the period jumped 32.5 percent to P428.5 billion from P232.3 billion in the same period last year, mainly due to the establishment of new branches in different parts of the country.

Borromeo said the DBP would continue to broaden its network by opening 10 new branches and adding new ATM machines this year. She said the bank has added 81 new ATM machines, increasing the total number of ATMs to 710 nationwide as of May.

“We ended the first quarter with 81 more ATMs, which is 40.5 percent of our 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,” she said.

Borromeo said the bank will continue to aggressively target one million depositors in the next five years, focusing mainly on small depositors residing in underserved areas of the country as part of its advocacy of financial inclusion. –