DBP net income down to P4.42 B in 9 months

The net income of state-owned Development Bank of the Philippines (DBP) dipped in the first nine months to P4.42 billion, mainly due to higher expenses incurred during the period.

In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank’s profits from January to October was 1.56 percent lower than the P4.49 billion recorded in the same period last year.

Herbosa attributed the slight decline to higher provisions for impairment losses, as well as taxes and operating expenses.

Nevertheless, the DBP chief has expressed confidence that the bank would be able to meet its P5.9 billion net profit target for the year.

“DBP remains confident of reaching its financial targets for this year. We have already achieved 75 percent of our net income target for 2019,” he said.

Herbosa reported that DBP’s gross income has reached P24.2 billion, up 28.6 percent from P18.9 billion last year.

He said the bank remained the eighth largest bank in the country in terms of assets, as total resources grew by 10.7 percent to P700.9 billion as of endSeptember from the P632.9 billion registered for the same period in 2018. Its net worth likewise rose by 17.01 percent to P58.5 billion.

“Our capital adequacy ratio stood at 14.7 percent for the period ending September, which is higher than the industry average of 12.2 percent,” Herbosa added.

According to the bank official, the DBP broadened its support to priority sectors, disbursing P329.1 billion in loans or 33.8 percent more than the P246 billion posted a year ago.

Herbosa attributed the increase in its loan portfolio to the aggressive lending activities by its 22 lending centers, which were established in 2018 to fast-track the credit application process and streamline client servicing.

He said the bulk of the bank’s loan portfolio went to the infrastructure and logistics sector, which accounted for nearly 40 percent of loan releases at P152 billion.