DBP post P2.8 B income in H1

MANILA, Philippines - State-run Development Bank of the Philippines (DBP) posted a net income of P2.8 billion in the first half of 2013, up 46 percent from P1.9 billion in the same period last year.

The robust income was attributed to the improvement in the bank’s loan portfolio and deposits level.

DBP’s gross loan portfolio and deposit levels registered double-digit gains as improvement in efficiency ratio contributed to higher return on equity at 14 percent. 

For the first half of the year, DBP’s capital adequacy ratio further rose to 23.9 percent from 21.6 percent.  

DBP continues to provide financing to priority projects involving infrastructure and logistics, social services, protection of the environment, and micro, small and medium enterprises (MSMEs).

This year, DBP plans to open more branches in underbanked areas in the country where MSMEs are located.

Last year, the bank opened branches in key areas throughout the country including Carcar, Cebu; Taguig City; Sta. Cruz, Laguna; Batangas City; and Virac, Catanduanes.

According to DBP, it expects the MSME sector to drive inclusive growth. 

Based on data from the Department of Trade and Industry, the MSME sector now accounts for more than 98 percent of registered businesses in the country, generating some four million jobs.

Aside from its bank funds, DBP taps official development assistance from the Asian Development Bank, Japan Bank for International Cooperation and World Bank, among others, for lending to its priority sectors.

Recently, the Industrial Guarantee and Loan Fund (IGLF) cited DBP as an outstanding program partner of the Bangko Sentral ng Pilipinas (BSP) for its commitment to provide financial support to further the development of MSMEs through the Credit Surety Fund (CSF). 

With DBP as fund administrator, the IGLF is supervised by an inter-agency committee chaired by Socioeconomic Planning Secretary and National Economic and Development Authority director general Arsenio Balisacan.

The IGLF is one of the donor institutions to the CSF, a credit enhancement scheme developed by the BSP which aims to increase the credit worthiness of MSMEs that are experiencing difficulty in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.