DBP income falls 39% to P1.74 billion in H1

MANILA, Philippines - The Development Bank of the Philippines (DBP) posted a net income of P1.74 billion in the first semester of 2011, 39 percent lower than the P2.83 billion in the same period in 2010, the state-run bank said in a statement.

However, DBP president and chief executive officer Francisco F. del Rosario Jr. said the first semester performance was already 46.47 percent or about half of its full- year net income target of P3.7 billion.

“The bank remains on track in its financial targets and development goals, despite various news reports concerning the untimely demise of a DBP junior officer and certain loan transactions,” Del Rosario noted.

DBP’s full year net income in 2010 was P4.6 billion, lower by 25 percent from the P6.09 billion recorded in 2009.

Meanwhile, its gross loan portfolio amounted to P169.31 billion as of end-June 2011, or 18 percent higher than the P143.16 billion in the same period in 2010. Of the total, 90 percent were developmental loans directed to infrastructure, logistics, social services, environment, and micro, small and medium enterprises (MSMEs) while 10 percent found its way to commercial loans.

Del Rosario pointed out that the government financial institution could still access P76 billion from official development assistance (ODA) funds from multilateral credit agencies since it is a conduit of such funds.

Deposits expanded almost 10 percent to P131 billion in the first semester of 2011, from P119.27 billion in the same period in 2010.

Gross income reached P8.18 billion or 95 percent of its first semester target of P8.63 billion.

Total assets grew to P306.33 billion during the period up eight percent from P283.43 billion in the first semester of 2010. Capital adequacy ratio (CAR) stood at a strong 19.36 percent.

Del Rosario said DBP will continue to strengthen its operations and systems, tap other funding sources, and further enhance credit policies and procedures.

There are plans to open a subsidiary office in Singapore, open more branches and automated teller machines (ATM), aside from alternative distribution systems.

The government bank was also involved in major deals to add to its investments. Among these were: Maynilad Water Services Inc.’s P7-billion fixed rate corporate note to finance its five-year capital expansion program; the P11.5-billion syndicated term loan of Private Infrastructure Development Corp. to finance the 88.58-kilometer Tarlac-Pangasinan-La Union Expressway; the P103.9-billion Retail Treasury Bonds (RTB) for the Bureau of the Treasury; the P323.45-billion domestic bond exchange project; the P2.25-billion floating rate bonds of the Metropolitan Waterworks and Sewerage System; the P75-billion Power Sector Assets and Liabilities Management Corp. syndicated term loan project; and the P1-billion Boracay Island Water Co. Inc. syndicated term loan.