The State Development Bank of the Philippines (DBP) posted a net profit of $5.35 billion in the first nine months of 2022 as the bank ramped up lending to key sectors of the economy, a senior official said.
Emmanuel G. Herbosa, DBP’s President and Chief Executive Officer, said the increase in the bank’s net income was primarily due to growth in its overall loans to borrowers as well as the continued increase in net interest income.
“DBP’s renewed performance this year is a testament to its stability as a sovereign financial institution and reflects optimism in the country’s economic outlook as we emerge from a downturn exacerbated by the pandemic,” Herbosa said.
DBP is the country’s eighth largest bank by assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium-sized enterprises (MSMEs); the environment; and social services and community development.
According to Herbosa, the bank’s total loans to borrowers from January to September 2022 amounted to 504.8 billion pesetas, a 15% growth compared to the 439.30 billion pesetas recorded last year, thanks to the accelerated lending that boosted by the full reopening of the economy.
He said P270 billion, or 53.49% of the total loans, went to the infrastructure and logistics sector, with the majority of projects located in the National Capital Region, Central Visayas, Central Luzon, Calabarzon, Eastern Visayas and Davao.
“DBP’s support for social infrastructure and community development projects totaled 103.71 billion pesos, accounting for 20.5% of its total loan portfolio,” Herbosa said.
“The bank also provided 54.35 billion pesos in loans for environment-related projects, 48.24 billion pesos for the agriculture sector, 30.30 billion pesos for the MSME sector and about 74.46 billion pesos for projects in finance and insurance as well ready in manufacturing, wholesale and retail, lodging and foodservice,” Herbosa added.
DBP executive vice president for operations Fe Susan Z. Prado said the bank’s net income before provisions was 10.62 billion pesos, largely driven by 4.25 billion pesos of loan loss provisions and 1, 02 billion pesos was charged.
She said DBP’s strong financial performance over the past quarter enabled it to exceed its recalibrated net income target of 3.85 billion pesos for 2022 and cement its position as one of the top-performing banks in the country today.
“Beyond the numbers, DBP’s financial position reflects the general trend for the Philippine economy at large, which is outperforming all odds and has performed remarkably well despite the challenges and adversities,” said Prado.
Image credit: Mbdz_DBP via Wikimedia Commons CC BY-SA 4.0