State-owned Development Bank of the Philippines’ (DBP) net income for the six months of 2022 surged to P2.76-billion, showing a hefty increase of 131 percent from the P1.19-billion recorded during the same period last year, as the bank ramped up lending activities in support of the National Government’s economic recovery program.
Emmanuel Herbosa, DBP President and CEO said the growth of the bank’s net income is attributable mainly to the significant increase in loan volume and interest income andlower cost of funds.
“DBP re-affirmed its commitment to help hasten the economic recovery of the country by intensifying its development lending activities,” Herbosa said. “Its solid financial performance in the first half of the year puts it in a prime position to bolster its support to the various priority programs of the National Government”.
DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy — infrastructure and logistics; micro, small and medium enterprises (MSMEs); the environment; and social services and community development.
Herbosa reported that the bank’s total loans from January to June 2022 grew to P494.15-billion,reflecting a 13 percent growth from the P436.02-billion recorded last year, adding that “…about 55.33 percent or P273.43-billion were released to bankroll projects in the infrastructure and logistics sector, majority of which are located in the National Capital Region, Central Visayas, and Central Luzon…”
He said DBP’s outstanding loans for social infrastructure and community development projects as of end June 2022 totaled P98.49-billion, while outstanding portfolio for other developmental initiatives covering finance and insurance, manufacturing, wholesale and retail trade, accommodation, and food services as of same period amounted to P65.20-billion.
“The bank also provided P48.69-billion in loans for the agriculture sector in support of the government’s food sufficiency program, as well as P52-billion for environment-related projects and P31.58-billion for MSME sector,” Herbosa said.
