DBP H1 net profit up 131% to P2.76B – Manila Bulletin
The Development Bank of the Philippines (DBP) achieved a net income of 2.76 billion pesos for the first half of 2022, up 131% from the same period last year, due to a significant increase volume of loans and interest income, as well as a reduction in the cost of funds.
“DBP has reaffirmed its commitment to accelerating the country’s economic recovery by stepping up its development lending activities,” Chairman and CEO Emmanuel G. Herbosa said Thursday, September 8.
“Its strong financial performance in the first half of the year places it in a unique position to strengthen its support for the various priority programs of the national government,” he added.
DBP is the sixth largest bank in the country by assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium-sized enterprises (MSMEs); the environment; and social services and community development.
The bank’s total lending from January to June 2022 rose to 494.15 billion pesos, a growth of 13 percent from the 436.02 billion pesos recorded last year.
About 55.33%, or 273.43 billion pesos, was released to finance projects in the infrastructure and logistics sector, the majority of which are located in the National Capital Region, Central Visayas and Central of Luzon, according to Herbosa.
DBP’s outstanding loans for social infrastructure and community development projects at the end of June 2022 stood at 98.49 billion pesos.
On the other hand, its outstanding portfolio for other development initiatives covering finance and insurance, manufacturing, wholesale and retail trade, accommodation and food services amounted to 65.20 billion of pesos.
“The Bank has also provided 48.69 billion pesos in loans to the agricultural sector in support of the government’s food self-sufficiency program, as well as 52 billion pesos for environment-related projects and 31.58 billion pesos for the MSME sector”, noted the President. .
Total deposits reached 731.90 billion pesos, or 82 percent of the 895 billion pesos year-end target, with low-cost deposits increasing by 9 billion pesos.
DBP opened two more branch units in Aroroy, Masbate and Jose Panganiban in Camarines Norte during the first half.
This expands its branch network to 145, including 14 light branches, located mostly in underserved and remote areas of the country.
DBP’s executive vice president of operations, Fe Susan Z. Prado, attributed DBP’s rise in first-half net profit to a 29 percent increase in gross margin to 3.09 billion pesos.
This despite being weighed down by the heavy provision for credit losses totaling 2.8 billion pesos, with net income before provisions reaching 6.41 billion pesos or an 85% year-on-year increase. .
The country’s positive economic outlook, supported by the gradual and calibrated opening of the economy, bodes well for the DBP, which seeks to capitalize on increased business activity for the remainder of 2022, Prado said.
“DBP’s first-half revenue already represents 72% achievement of its readjusted target of 3.85 billion pesos for the year,” she said.
“The bank is on track to maintain its position as one of the most financially stable government financial institutions in the country.”
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