DBP profit soars 60% to P2.47 billion in 7 months

MANILA, Philippines - The state-owned Development Bank of the Philippines (DBP) reported a net income of P2.47 billion in the first seven months of 2009, 60 percent higher than the P1.54 billion recorded last year.

In a report, DBP said available funds for development projects, especially in infrastructure, reached P77.66 billion during the period.

In 2008, the government financial institution posted a net income of P3.6 billion.

DBP president and chief executive officer Reynaldo G. David said they are confident of equaling, if not surpassing, last year’s figures.

Total resources grew to P271.56 billion as of July this year from P250.63 billion recorded during the same period in 2008.

The deposit base rose to P110.29 billion, up from P86.74 billion in 2008. In fact, deposits generated in the first seven months already exceeded the P92.98 billion generated last year.

David said this is the result of DBP’s aggressive deposit generation campaign that has provided it with more sources of funds for lending on top of its official development assistance (ODA) funds.

He added that since 2007, DBP has logged an increasing trend in its deposits level.

Loan portfolio rose to P156.04 billion as of July this year from last year’s P144.44 billion. Loans to borrowers increased from P82.08 billion to P99.02 billion this year.

Thus, DBP’s capital adequacy ratio (CAR) stood at a robust 20.34 percent, compared to the minimum requirement of 10 percent set by the Bangko Sentral ng Pilipinas (BSP).

Meanwhile, David said a total of P77.66 billion was made available for lending to development efforts focused on infrastructure and logistics, micro, small and medium enterprises, social services, environment and industrial programs.

DBP’s new financing facilities include the P14.78-billion Logistics Infrastructure Development Project (LIDP), the P2.28-billion Credit for Better Health Care Project, and the P1.77-billion Rural Power Project (RRP).

The LIDP, funded by the Japan International Cooperation Agency (JICA), will provide medium to long-term funding for critical infrastructure projects including roll-on, roll-off (roro) vessels and related facilities such as ports and ramps; toll roads, farm-to-market roads and related maintenance equipment.