DBP surpasses 2005 income goal of P2.7B in 10 months

After only 10 months, the Development Bank of the Philippines (DBP) has surpassed its full-year 2005 net income target of P2.7 billion.

From January to October this year, DBP’s net income reached P2.77 billion, or 75.32 percent higher than the P1.58 billion earned during the same period last year.

In 2004, net income rose to P2.31 billion representing nearly 19-percent growth from P1.95 billion the year before.

DBP president and chief executive officer Reynaldo G. David said the bank’s exceptional financial performance reflects the stability and relevance of the institution, without losing sight of its developmental mandate.

"We are on track to achieving our development targets for the year, while remaining a financially-sound financial institution. This gives us better leverage to effectively pursue our programs designed to help the government attain its development agenda," David said.

Gross income stood at P13.29 billion, up by 18.45 percent from P11.22 billion registered in the same period last year.

Gross loan portfolio stood at P108.14 billion, or 28.74 percent higher than last year’s P84 billion.

Total assets grew to P187.83 billion from P152.08 billion while net worth was pegged at P22.13 billion from the previous year’s P19.16 billion, an increase of nearly 16 percent.

DBP also continued to contribute significantly in promoting the sustainable growth of strategic economic sectors through its various programs for priority development areas.

Under its Sustainable Logistics Development Program (SLDP), the bank remained supportive of the government’s Strong Republic Nautical Highway project as it continued to encourage investments in the Road Ro-ro Terminal System (RRTS), Cold Chain and the Grains Highway.

Presently, the bank has budgeted a total of P6.74 billion for 250 projects.

David reported that under the RRTS, the bank has approved loans amounting to P1.837 billion for 12 accounts involving modernization/upgrading of vessels, port development and maritime education projects.

There are presently six projects in the pipeline amounting to P330 million while a total of P312 million has been budgeted for six prospective projects.

Interest rates for RRTS loans are 7.5 percent for missionary routes and 8.5 percent for commercial routes.

Repayment term and grace period may be lengthened depending on cash flows.

For the cold chain, a total of P2.9 billion has been budgeted for 66 approved, prospective and pipeline projects that include processing and marketing centers, aggregating centers, reefer transport equipment/vehicles, ice plants, other cold storage facilities.

A total of 140 accounts amounting to P1.1 billion have been approved under the grains highway component of the SLDP. These projects include rice milling, grains processing, feed milling projects, and a bulk storage and loading facility project.