DBP net income up 50% to P5.6 billion

2023-03-01 969

Core Tip: 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, as lending activit

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, as lending activities grew after the economy re-opened.

New DBP President and Chief Executive Officer Michael O. de Jesus attributed the earnings’ growth to increases in loan volume and interest income, combined with prudent management of interest expense desspite the rise in loan loss provisioning.

“The financial performance of DBP enhances its capacity to support the National Government’s goal of sustainable economic growth by financing socio-economic initiatives, particularly on infrastructure development,” he pointed out.

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 percent of its total loan portfolio.

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.

These 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 noted.

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

Before provisions, the bank’s income stood at P12.5-billion, showing a hefty 44.4 percent increase from the P8.66-billion recorded in 2021.

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

During the past few years, DBP intensified 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.

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.

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