DBP income up 40% to P4B

MANILA, Philippines - State-run Development Bank of the Philippines (DBP) posted a 40-percent increase in its net income to P4.04 billion in the first nine months of 2013 from P2.89 billion in the same period last year.

In a statement, DBP said the improved earnings was reflective of the country’s strong economic performance and favorable market conditions.

The bank’s gross income also improved to P14.52 billion in the first three quarters of the year as against P12.74 billion last year.

As of end-September 2013, DBP’s deposits grew from P129.3 billion to P222.84 billion, a 72.26-percent jump.

Total assets also went up to P391.79 billion from P313.9 billion last year, an improvement of 25.13 percent.

During the period under review, the bank’s capital adequacy ratio (CAR) based on Basel 2 stood at 20.94 percent.

DBP said it remains consistent in its efforts to support the government’s national development thrusts, channeling much-needed financial facilities to strategic sectors such as infrastructure and logistics, environment protection, social services involving health care, education, housing and community development, and micro, small and medium enterprises.

To beef up its various developmental initiatives, DBP issuing P5 billion worth of Basel 3-compliant unsecured subordinated notes qualifying as Tier 2 capital, with the option to upsize.

The Tier 2 unsecured subordinated notes will mature in 10 years from issue date.

The issuance will replace the P6.5-billion (non-Basel 3) unsecured subordinated debt qualifying as Lower Tier 2 capital (UnSD-LT2) called in September.

Last Sept. 2, 2013, DBP exercised its call option on the P6.5-billion UnSD-LT2 it issued on Sept. 1, 2008 with a coupon rate of 7.75 percent per annum.

DBP is continuously expanding its branch network. Over the past months, it  opened four branches in Metro Manila – Parañaque, Manila-Nakpil, Alabang and Makati-J.P. Rizal.