DBP income up 27.85% to P5.28 B

MANILA, Philippines - The Development Bank of the Philippines (DBP) registered a net income of P5.28 billion last year, a 27.85-percent growth from P4.13 billion in 2012, buoyed by significant increases in deposits, loans to borrowers, and investments.

In a statement, DBP said deposit levels grew 41.92 percent from P176.92 billion in 2012 to P251.08 billion last year. Loans to borrowers increased seven percent from P118.93 billion to P127.37 billion. Meanwhile, investments jumped from P97.74 billion to P145.75 billion in 2013.

Total assets increased to P436.1 billion from P361.08 billion in 2012, while capital adequacy ratio stood at 24.33 percent as of end-2013.

DBP president and chief executive officer Gil A. Buenaventura said 2013 was a great year for the government-run development bank.

“But challenges lie ahead such as the ever-increasing industry competition and stricter capital regulations,” he said.

The bank supports the inclusive growth strategy of the National Government as stated in the Philippine Development Plan, he added.

DBP helps finance projects under the government’s Public-Private Partnership (PPP) program. It now plans to expand its PPP financing program to include projects of local government units.

The bank continues to provide financing to projects in the priority areas of infrastructure and logistics, social services, protection of the environment, micro, small and medium enterprises.

Meanwhile, Buenaventura said DBP would increase its number of branches to 102 and expand the number of its ATMs in key locations nationwide. The bank plans to offer more customer-oriented products and services and increase business lines to fulfill its SME mandate.

Fitch Ratings Services affirmed DBP’s ratings at BB+ based on stable deposit basis, satisfactory liquidity, high core capitalization, and rising loan reserves.

Standard and Poor’s (S&P) also upgraded DBP’s long-term issuer credit ratings to BBB- from BB+, with a stable outlook.

The international rating agency cited DBP’s critical public policy role in supporting the economic and social development of the Philippines and the bank’s integral link to the government.

Buenaventura added that the DBP continues to be well-capitalized and will continue to focus on the bank’s natural government ecosystem – the water districts, electric cooperatives, and local government units.