DBP net income hits P1.32-B in first four months

State-owned Development Bank of the Philippines (DBP) improved its net income to P1.32-billion in the first four months of 2011, representing an increase of 15.79% from the P1.14-billion recorded in the same period last year.

DBP president & chief executive officer Francisco F.Del Rosario, Jr. said the bank remains sound and financially viable, enabling it to continue supporting the various development initiatives of the Aquino administration particularly its flagship Public-Private Partnership (PPP) program.

Del Rosario said the bank’s gross loan portfolio improved from P145.46-billion a year ago to P151.82-billion as of the end of April 2011, or an increase of 4.37%. Del Rosario added that the bulk of DBP’s loan portfolio for development projects went to the infrastructure sector with P20.02 billion. DBP also lent P7.47 billion for environment initiatives while some P10.9 billion supported social services projects involving health care, education, housing, community development, and eco-tourism initiatives. Another sector that benefited from DBP’s assistance is the mSME sector, with a loan portfolio of P13.7 billion.

DBP’s deposit levels continue to improve, up by 11.32% from P115.43-billion last year to P128.5-billion this year. Total assets also grew from the P275.58-billion recorded during the same period last year to P302.5-billion this year.

He added that DBP’s capital adequacy ratio (CAR) based on Basel II slid down from 22.03% in 2010 to18.92% as of March 31, 2011 due to the early redemption of the unsecured subordinated debt lower Tier 2 capital (USD-LT2) amounting to P2.35 billion. This figure, however, is still significantly higher than the 10% mandated by the Bangko Sentral ng Pilipinas.

Del Rosario added to accomplish its set directions for 2011, the bank will scale up credit assistance to promising growth industries and government programs and projects especially in infrastructure development. DBP will likewise capitalize on its expertise in offering technical and financial advisories, and extend its marketing reach especially in the countryside.

Assistance to SMEs Del Rosario also reported on DBP’s gains in supporting the micro, small and medium enterprises (MSME) sector with its enhanced Retail Lending program for Micro and Small Enterprises and its participation in the Credit Surety Fund (CSF) program of the Bangko Sentral ng Pilipinas (BSP).

DBP’s retail lending program has assisted 263 SMEs and generated a total of 3,721 jobs with loan approvals totaling to P641.9 million from July 1, 2010 to March 31, 2011, according to Del Rosario.

Most of the DBP-assisted enterprises come from the regions of Central Luzon, Bicol, Eastern Visayas, Southeastern Mindanao, and Northeastern Mindanao. The program has also assisted in job generation in Metro Manila, Bicol, Eastern Visayas, Northeastern Mindanao, Southern Mindanao, and Northeastern Luzon. About 166 projects amounting to P450.06 million are now in the pipeline for financing support under the program.

Del Rosario added that DBP has contributed to 20 Credit Surety Funds of the BSP with total approved contributions amounting to P31.05 million as of April 19, 2011. The bank has also approved a total of P75.8 million in loans under the CSF Credit Facility as of March 31, 2011.