Lending

DBP’s loan portfolio on the rise, profits down at height of pandemic

The Development Bank of the Philippines (DBP) was able to maintain the growth of its loan portfolio despite the COVID-19 pandemic, releasing 374.8 billion pesos in loans to borrowers from January to September.

In a statement, DBP President and CEO Emmanuel Herbosa said this reflected a 13.9% increase from the 329.1 billion pesos disbursed during the same period in 2019.

Loans of 175.7 billion pesos were granted to the infrastructure and logistics sector; followed by loans to social services worth 77.2 billion pesos; environmental projects worth 43.1 billion pesos; and micro, small and medium enterprises worth P26.5 billion.

“The DBP has expanded its support to priority industries as we fully commit to rebuilding, recovering and revitalizing the economy that has been affected by the pandemic and the series of calamities,” he said.

DBP is the country’s seventh largest bank in terms of assets and provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development and the environment.

Over the past nine months, the state bank has played a key role in efforts to rehabilitate public and private institutions affected by the pandemic.

Herbosa also said that total deposits at the end of September had increased by 50% to 754.9 billion pesos from the 502 billion pesos recorded during the same period in 2019, supported largely by the 58% increase in term deposits and 22% increase in current deposits and savings accounts.

This makes the bank’s deposit growth rate one of the highest in the industry this year.

DBP has a network of 129 branches including 11 branches, most of which are located in underserved areas of the country. Its ATMs number 836, most of which are located in remote and unbanked areas.

Herbosa said total assets reached 945.4 billion pesos from January to September of this year, an increase of 34.9% from 700.9 billion pesos in the same period last year.

Total capital rose 9.5 percent to 64 billion pesos at the end of September this year, increased by the national government injecting 6 billion pesos through the Bayanihan to recover in one act.

Its capital adequacy ratio stood at 13.8%, above the industry average of 12.4%.

DBP Executive Vice President Marietta Fondevilla said the bank’s net profit at the end of September reached 3.24 billion pesos, down 26.7% from the 4.42 billion pesos recorded in during the same period in 2019.

She said the decline was mainly due to an increase in provisions for credit losses and income taxes as well as an increase in administrative expenses, which mainly went to the pandemic-related response, in particular by its units. Management. INQ

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