DBP net income up 17% in first quarter
The Philippine Development Bank’s (DBP) net income increased by 17% to 1.23 billion pesos in the first quarter of 2023, compared to 1.05 billion pesos in the same period last year.
Michael de Jesus, President and CEO of DBP, said higher interest income from expanded lending to vital sectors of the Philippine economy as a result of increased business activity contributed to the bank’s double-digit growth in earnings.
“The resurgence of DBP’s financial performance in 2023 is a testament to its stability as a public financial institution,” de Jesus said.
“We will continue to develop this growth trajectory and fulfill our mandate to be a catalyst for growth in areas where economic activity is limited and most needed,” he added.
De Jesús said DBP continues to be in excellent financial health as it beat its first-quarter net profit target of 820 million pesos by 50 percent and gross loan portfolio reached 547 billion pesos, up 2.0 percent from 539 billion pesos registered in the same period. period in 2022.
DBP is the eighth largest bank in the country by assets.
It continues to be a relevant and reliable partner for the national government in meeting the financial needs of strategic and critical sectors of the economy such as infrastructure and logistics, micro, small and medium enterprises, social services and the environment.
As of the end of March this year, loans for infrastructure and logistics reached 285.235 billion pesos, of which the outstanding portfolio for social infrastructure and community development amounted to 107.842 billion pesos.
“The majority of our releases, or about 55.2% of the bank’s loan portfolio, have been earmarked to fund infrastructure development initiatives in support of the national government’s Build Better More program, most of which are located in the Capital Region, Central Visayas, Davao and Central Luzon,” de Jesus added.
The bank also provided 35.82 billion pesos in agricultural loans and 78.54 billion pesos in other development loans, including for manufacturing, wholesale and retail trade and catering.
It also allocated a total of 54.166 billion pesos for environmental projects and 30.604 billion pesos to support micro, small and medium-sized enterprises.
Despite an increase in the loan loss reserve of 765 million pesos, the bank reached its profit target in the first quarter of 2023.
De Jesús also said that DBP saw a slightly capital increase of 4 percent to 80.179 billion pesos from 76.823 billion pesos in the same time period in 2022.
“DBP remains on track to maintain its position as one of the most relevant and stable public financial institutions in the country,” he added.