DBP first quarter income up 47%

SIARGAO, Surigao del Norte, Philippines – The Development Bank of the Philippines (DBP) has reported a net income of P1.22 billion in the first three months of 2009, or 47 percent better than the P830 million registered in the same period last year.

Gross income likewise expanded by 28 percent to P4.96 billion in the first quarter of 2009 from P3.86 billion in the same period last year.

The government financial institution said that the strong performance in the first quarter of the year was due to improved retail lending operations leading to a corresponding increase in interest income, as well as investment transactions.

DBP president and chief executive officer Rey G. David said that the continued strong performance allows the government financial institution to complement the strategic programs of the National Government.

“DBP is helping fuel the growth of the economy through our assistance to strategic sectors particularly infrastructure and logistics, small and medium enterprises, social services such as health care and education, and the environment,” he said.

Gross loan portfolio increased from P175.22 billion to P175.83 billion with past due loans dipping from P3.1 billion to P2.71 billion end March. 

Non-performing loans (NPLs) shrunk to P2.58 billion statting April this year from P3.1 billion in the first quarter of 2008.

“We are on course to hitting our aim of allocating 90 percent of our total loan portfolio for development projects in support of the National Government’s goal of jumpstarting the economy,” the chief executive said.

Total assets improved by 6.96 percent, or from P281.88 billion in March 2008 to P301.51 billion during the same period this year. Its capital adequacy ratio (CAR) improved from 21.36 percent to 23.29 as of end February 2009.

Deposits expanded to P103.35 billion this year from last year’s P69.90 billion, with government deposits accounting for 71 percent of total amount. – Ted Torres