State-owned Development Bank of the Philippines (DBP) grew its net income by 20 percent to P7.1 billion last year marking its highest amount in income in the past decade.
In a statement on Monday, DBP reported that the year-ago earnings also surpassed its target of P5.5 billion by 29 percent for that period.
DBP said income from core businesses jumped by 13 percent, with increased volumes of loans, service fees, foreign exchange transactions and trading gains.
Loans grew to P536.8 billion by 6 percent from P509.2 billion year-on-year. A portion worth P326.48 billion or 6o percent of the total loans was directed to infrastructure and logistics firms that were building projects mostly in Metro Manila, Metro Davao, Central Visayas and Eastern Visayas.
Meanwhile, loans amounting to P99.33 billion were used to implement projects for social infrastructure and community development.
DBP also provided P55.12 billion for environmental projects and P26.94 billion for micro, small and medium enterprises.
Non-interest income reached P4.04 billion, which DBP said surged by 81 percent above its target as service fees, foreign exchange transactions, and trading gains rose.
“DBP’s financial performance mirrors largely the optimism of the public on the prospects of the economy in the coming years even as we aggressively pursue programs that would advance the national economic agenda of the President,” DBP president and chief executive officer Michael de Jesus said.
DBP reaches out to borrowers through its branch network of 148 units, which include 15 branch-lite units in rural and underserved areas in the country.
DBP improved its capital adequacy ratio to 14.90 percent from 13.92 percent. Similarly, its common equity tier 1 capital ratio was better at 13.98 percent from 13 percent.
“DBP’s resurgent performance in 2024 is a clear testament that it remains a strong and stable government financial institution that is greatly capable of funding the priority programs of the National Government,” De Jesus said.
These statements came after the DBP chief told media in January that the bank requested the Bangko Sentral ng Pilipinas for an extension of regulatory relief this year, following its P25-billion capital contribution to the Maharlika Investment Fund.