Development Bank of the Philippines (DBP) net income up 16% to P 1.32 Billion in Q1 2011

The Development Bank of the Philippines (DBP) has reported a net income of P1.32 billion in the first three months of this year, 15.79 percent higher than the P1.14 billion recorded in the same period in 2010.

DBP president and chief executive officer Francisco F. del Rosario Jr. said the government financial institution lent out P7.47 billion for environment-related projects and another P10.9 billion went to social services projects involving health care, education, housing, community development and eco-tourism initiatives.

It lent out a total of P13.7 billion to the microfinance, small and medium enterprises (mSME).

Gross loan portfolio amounted to P151.82 billion with the infrastructure sector accounting for P20.02 billion.

Meanwhile, deposits grew double-digits from P115.43 billion in 2010 to P128.5 billion, with total assets ballooning to P302.5 billion.

Capital adequacy ratio (CAR) slipped to 18.92 percent after the first quarter this year, from 22.03 percent last year. Del Rosario said this was due to the early redemption of the unsecured subordinated debt Lower Tier 2 capital worth P2.35 billion.

He said DBP will have to scale up credit assistance to industries and government programs and projects, especially the Public-Private Partnership (PPP) projects.

“DBP will capitalize on its expertise in offering technical and financial advisories, and extend its marketing reach especially in the countryside,” he added.

Data from the government financial institution show that 263 SMEs had been directly benefited by DBP’s lending program. That has also resulted in the generation of 3,721 jobs with loans approvals totaling to P641.9 million.

“About 166 projects amounting to P450.06 million are now in the pipeline for financial support under the program,” the DBP chief executive said.

DBP reported a net income of P4.6 billion in 2010, down almost 25 percent from the P6.09 billion recorded in 2009.