CALAMBA CITY, Laguna, Dec. 18 (PIA) --State-owned Development Bank of the Philippines (DBP) sustained the growth momentum of its loan portfolio, releasing a total of P374.85-billion in loans to borrowers for the first nine months of the year, which reflected a 13.91 percent increase from the P329.07-billion disbursed during the same period in 2019, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said a substantial part of the loan releases amounting to P175.72-billion went to the infrastructure and logistics sector; followed by loans to social services, P77.23-billion; environment projects, P43.12-billion; and micro, small, and medium enterprises, P26.48-billion.
“As the premiere infrastructure bank of the country, DBP broadened its support to priority industries as we throw our full commitment to rebuild, recover and revitalize the economy that has been battered by the pandemic and the series of calamities,” Herbosa said.
DBP is the seventh largest bank in the country in terms of assets and provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development, and the environment.
Over the past nine months, DBP has played a key role in the rehabilitation efforts of both public and private institutions affected by the pandemic through the DBP Rehabilitation Support Program on Severe Events or DBP RESPONSE.
Herbosa also said total deposits as of end-September surged by 50 percent to P754.95-billion from the P502.02-billion recorded during the same period in 2019, buoyed largely by the 58 percent rise in term deposits and 22 percent increase in so-called low-cost deposits comprised of Current Accounts and Savings Account.
He said DBP’s deposit growth is one of the highest in the banking industry this year in terms of percentage and absolute numbers, adding “…it tangibly reflects growing public confidence in the bank as a strong and stable financial institution…”
DBP has a branch network of 129 branches including 11 branch units, which are mostly situated in underserved areas of the country. Its automated teller machines total 836, most of which are located in remote and unbanked areas.
Herbosa said total assets climbed to P945.39-billion from January to September this year showing a hefty 34.89 percent increase from theP700.86-billion achieved during the same period last year.
He said total capital grew by 9.49 percent, from P58.56-billion last year to P64.01-billion as of end-September this year, augmented by the P6-billion infusion by the National Government under Republic Act No. 11494 or the Bayanihan to Recover As One Act (Bayanihan 2).
“DBP's net worth stood at P64.01-billion by end of the third quarter while total capital adequacy ratio is at 13.76 percent, higher than the industry average of 12.39 percent,” Herbosa said.
DBP Executive Vice President for Corporate Services and Concurrent Head of Operations Marietta M. Fondevilla said DBP’s net income as of end-September reached P3.24-billion, down 26.69 percent compared with the P4.42-billion recorded for the same period in 2019.
She said the decline was caused mainly by higher provisioning for credit losses and income taxes as well as an increase in administrative expenses, which went mostly for pandemic-related response especially by its field units.
“While DBP’s fiscal position remains strong and we are confident of reaching our full-year financial targets, the bank’s focus is to optimally mobilize our available resources not just for recovery but also towards improving the resiliency of our priority sectors against future economic shocks,” Fondevilla said. (PIA-4A/DBP)
Source: Philippines Information Agency (pia.gov.ph)
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