DBP net income up 9.2% to P1.9 B in H1

Manila, Philippines - State-run Development Bank of the Philippines (DBP) has reported a 9.2 percent increase in its net income in the first six months of 2012 to P1.9 billion, from P1.7 billion in the same period in 2011.

DBP president and chief executive officer Francisco F. del Rosario Jr. attributed the improvement in the bank’s earnings to the growth of gross loan portfolio by 9.8 percent to P179.17 billion during the first half of 2012 compared to P169.3 billion in the comparative period last year.

Del Rosario said with the continuing healthy financial stance, DBP was able to sustain its assistance to its priority development sectors – infrastructure and logistics, social services, the environment, and micro, small and medium enterprises (MSMEs).

“We remain financially sound and viable but more importantly, we have remained true to our developmental mandate by supporting critical sectors of the economy,” he said.

Of the bank’s gross loan portfolio, P118 billion were loans to borrowers. Of this amount, P109 billion or 92.48 percent were comprised of developmental loans with the remaining P8.8 billion for commercial loans.

Deposit levels grew 2.24 percent from P131.01 billion to P133.94 billion this year.

Capital adequacy ratio (CAR) based on Basel II stood at 20.33 percent, higher from the 19.36 percent recorded during the same period last year. DBP’s CAR is significantly higher than the 10 percent mandated by the Bangko Sentral ng Pilipinas.

DBP’s non-performing loans level, Del Rosario noted, also improved to P4.89 billion from P5.3 billion during the previous year, and non-performing assets went down from P7.56 billion last year to P6.86 billion this year.

Coverage ratio of non-performing assets increased to 82.42 percent from 72.52 percent last year. Total assets also increased 1.52 percent from P306.33 billion recorded last year to P310.98 billion this year.

For the past months, DBP has opened five new branches. In the remaining months of the year, the bank expects to expand its full service network by putting up additional branches in San Juan, Parañaque, Makati, Manila, Alabang and Santiago, Isabela.