DBP posts 26% profit growth

The state-run Development Bank of the Philippines (DBP) posted a record net income of P4.72 billion last year, 26 percent higher than the P3.73-billion earnings recorded in 2006.

In a statement, DBP said its non-performing loans (NPLs) remained at a low ratio of 2.7 percent valued at P3.58 billion, as non-performing assets (NPAs) stood at P4.76 billion as of end-2007.

Capital adequacy ratio (CAR) stood at a healthy 22.05 percent, way above the 10-percent requirement by the Bangko Sentral ng Pilipinas.

Total deposits reached P70.67 billion while its development lending resulted in loans amounting to P72.5 billion, or 88.3 percent of total loans in 2007.

DBP president and chief executive officer Reynaldo G. David said the amount supported the bank’s priority development initiatives for infrastructure and logistics projects, micro, small and medium enterprises (MSMEs), social services and the environment.

“DBP continues to strengthen its assistance to key sectors of the economy and in the process, help the National Government in enhancing the business climate in the country,” David said.

The government financial institution’s Sustainable Logistics Development Program (SLDP) garnered the biggest share with P23.23 billion. The MSMEs sector followed with P15.2 billion, social services (P6.52 billion) and environment (P3.84 billion).

Commercial lending activities amounted to P9.58 billion, representing 11.67 percent of the bank’s loans to borrowers. Among the assisted sectors were manufacturing, community development, social and personal services, public administration and defense, electricity, gas and water supply, transport, storage, and communications.

“With improved financial strength, DBP has the wherewithal to fund the different strategic programs necessary to complement an emerging economy,” David explained.

He added that the government financial institution is formulating more innovative approaches to enhance its wholesale lending activities.

“This will include the adoption of a program financing package for our large wholesale lending partners and to further extend the reach of these developmental funds,” David added.