State-owned Development Bank of the Philippines’s net income in the first six months of 2023 jumped 60 percent to P4.42 billion from P2.76 billion in the same period last year, a top executive said Thursday.
DBP president and chief executive Michael de Jesus said the increase was fueled by a hike in foreign currency profits on its foreign books and non-recurring gains from the disposal of real and other properties acquired.
“Notwithstanding the one-time gains, overall the bank’s performance in the first half of the year demonstrates its resilience as an institution and its readiness to support the National Government’s strategic initiatives to foster economic growth and financial stability,” de Jesus said.
DBP is the eighth largest bank in the country in terms of assets and remains a relevant and reliable partner of the government in serving the financing needs of strategic and critical economic sectors, particularly infrastructure and logistics, micro, small and medium enterprises, social services and the environment.
De Jesus said the bank is on track to meeting its full-year income target of P5.20 billion.
He said loans for infrastructure and logistics accounted for the bulk of outstanding exposure at P281.59 billion, followed by loans to social infrastructure and community development at P110.03-billion.
“A significant chunk of our loans or about 55.5 percent percent of the bank’s total portfolio of P507 billion was released to bankroll public infrastructure under the banner of the national government’s ‘Build Better More’ program, majority of which are in the National Capital Region, Central Visayas, Davao, and Central Luzon,” de Jesus said.
DBP said that from January to June this year, it provided P35.38 billion in loans for the agriculture sector, P79.93-billion for other developmental loans such as financial and insurance activities, including manufacturing, wholesale and retail trade and food services, P54.43-billion for environment-related projects and P30.23-billion to support micro, small and medium enterprises.
De Jesus said that as of end-June 2023, the bank posted a 4-percent growth in total deposits to P760 billion on higher term and non-term deposits. It also registered a modest capital increase of 8 percent to P83.64 billion from P77.54 billion recorded during the same period in 2022.
He said the bank maintained its solid financial position even as it affirms its full support to President Ferdinand Marcos Jr.’s call to ramp up support to critical investment areas such as physical connectivity, water resources, agriculture, health, digital connectivity and energy. “DBP’s position as the country’s infrastructure bank is closely aligned with our President’s vision of catalyzing progress through economic efficiency through well-planned and inclusive infrastructure development,” de Jesus said.