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DBP nets P1.23 billion in Q1, up 17%

State-owned Development Bank of the Philippines (DBP) saw double-digit growth in its bottom line in the first three months of 2023 due to increased lending activities during the period.

In a statement on Friday, DBP reported a net income of P1.23 billion during the January to March period, up 17% from P1.05 billion in the same period last year.

DBP President and CEO Michael de Jesus attributed the growth to higher interest income from expanded lending activities to critical sectors of the economy as a result of increased economic activity.

“DBP’s resurgent financial performance in 2023 is an attestation of its stability as a government financial institution,” said de Jesus.

“We shall continue to build on this growth trajectory and carry on our mandate of being a catalyst of growth in areas where economic activities are limited and most needed.”

DBP is the eighth-largest bank in the country in terms of assets.

De Jesus said that as of end-March this year, loans for infrastructure and logistics totaled P285.235 billion, while the outstanding portfolio for social infrastructure and community development amounted to P107.842 billion.

“Bulk of our releases or about 55.2% of the Bank’s loan portfolio were released to bankroll infrastructure development initiatives in support of the national government’s ‘Build Better More’ program, majority of which are located in the National Capital Region, Central Visayas, Davao, and Central Luzon,” said the DBP chief.

The state-run lender also provided P35.82 billion in loans for the agriculture sector; P78.54 billion for other developmental loans such as financial and insurance activities, including manufacturing, wholesale and retail trade, and food services; P54.166-billion for environment-related projects; and P30.604-billion to support micro, small, and medium enterprises.

“DBP remains on track to keep its position as one of the most relevant and stable government financial institutions in the country,” said de Jesus.

The Department of Finance is proposing to merge DBP with another state-owned lender, Land Bank of the Philippines, with the latter as the surviving entity poised to become the country’s largest bank in terms of assets. — DVM, GMA Integrated News