CAGAYAN DE ORO CITY (PIA)--The state-owned Development Bank of the Philippines' (DBP) full-year net income surged by 50 percent in 2022, reaching P5.61-billion compared to the P3.74 billion that it earned in 2021, fueled largely by expanding its lending activities as a result of the full reopening of the local economy, a top official said.

Michael O. de Jesus, president and CEO of DBP, said the rise in the bank's net income is due to a rise in the number of loans and interest income, as well as careful management of interest costs, despite a rise in loan loss provisions.

"This resurgent financial performance of DBP enhances its inherent strong capacity to support the National Government’s goal of promoting sustainable and equitable economic growth in the country through the provision of vital financial support to various socio-economic initiatives, particularly on infrastructure development," de Jesus said.

DBP is the eighth largest bank in the country in terms of assets, and it gives credit to four important parts of the economy: infrastructure and logistics; micro, small, and medium enterprises (MSMEs); the environment; and social services and community development. It has a network of 132 branches and 15 branch-lite units.

In the past few years, DBP has stepped up its role as an infrastructure bank by putting most of its money into strategic industries with higher economic multipliers and more economic opportunities, like road networks, transportation, energy, water, housing, and healthcare.

De Jesus said that the bank's total loans went up by 12 percent, from P469.40 billion in 2021 to P527 billion in 2022, with most of the money going to projects in the infrastructure and logistics sectors, which account for 56% of the bank's total loan portfolio.

He said the DBP's outstanding loan portfolio in 2022 was worth P105.91 billion for projects in the social infrastructure and community development sector and P70.04 billion for loans to other development projects, such as financial and insurance activities, manufacturing, wholesale and retail trade, lodging, and food services.

"DBP’s outstanding loans for environment-related projects totaled P54.62 billion, P32.14 billion for the MSME sector, and about P45.58 billion for projects in the agriculture sector in line with the food sufficiency program of the National Government," de Jesus said.

Despite making a P5.9 billion provision for credit losses, DBP Officer-in-Charge for Operations First Vice President Christine G. Mota claimed that the P4.22 billion, or about an 18% increase in gross margin, was what drove DBP's increased net profit.

Mota said the bank’s income before provisions stood at P12.5 billion, showing a hefty 44.4% increase from the P8.66 billion recorded in 2021. 

"For 2022, DBP substantially exceeded its net income target of P3.85 billion by 46%, which attests to the bank’s lofty position as one of the most financially stable government financial institutions in the country," Mota said. (DBP/PIA-10)