DBP lends P72.5 billion for developmental projects
Manila (14 February) -- State-owned Development Bank of the Philippines (DBP) expanded its lending activities to P72.5 billion, representing 88.3% of its total loans to borrowers in 2007, as it stepped up its assistance to strategic sectors of the economy.
DBP president and chief executive officer Reynaldo G. David said the amount supported its priority development initiatives for infrastructure and logistics projects, micro, small and medium enterprises (MSMEs), social services, and the environment.
"DBP's loan portfolio remains directed towards developmental activities. DBP continues to strengthen its assistance to key sectors of the economy and in the process, help the national government in enhancing the business climate in the country," David stressed.
He added that the bank's infrastructure and logistics initiative, the Sustainable Logistics Development Program (SLDP) garnered the biggest share with P23.23 billion. The MSMEs sector was next with P15.2 billion, followed by social services (P6.52 billion), and environment (P3.84 billion).
"DBP also strengthened its assistance to other sectors such as manufacturing, construction, wholesale and retail trade, agriculture, fishing, hotels and restaurants, and mining and quarrying," David stressed.
David likewise reported that DBP's commercial lending stood at P9.58 billion, representing 11.67% of the Bank's loans to borrowers. Among the sectors it assisted were manufacturing, community development, social and personal services, public administration and defense, electricity, gas and water supply, transport, storage, and communications.
Meanwhile, David said DBP posted a record net income of P4.72 billion last year, exceeding its financial performance in 2006. He added that with the improved financial performance of the bank, DBP is now in a better position to fund the various priority developmental thrusts of the national government.
"DBP sustained its exemplary financial performance in 2007 by harnessing the strengths of its balance sheets and exploiting opportunities in the local and global markets. With improved financial strength, DBP has the wherewithal to fund the different strategic programs necessary to complement an emerging economy," David explained.
Non-performing loans remained in the low single digit level, with NPL ratios pegged at 2.7% and worth P3.58 billion. Non performing assets stood at P4.76 billion as of end December 2007, with coverage ratio improving to 105.57% from the previous year's mark of 87.60%.
DBP's capital adequacy ratio stood at 22.05% as of end December 2007, while its efficiency ratio stood at 48.37% compared to the industry average of 63.3% as of June 2007. Deposits hit P70.67 billion in 2007. The bank's net worth stood at P38.11 billion, an improvement from the P35.42 billion in 2006.
David added that, "Given the liquidity of the market because of a trend towards prepayment of loans due to the low interest rate environment, particularly in our wholesale lending activities, we are optimistic that DBP will continue to be a viable source of long-tem money which is not easily available in the market. And to further extend the reach of these developmental funds, we are formulating more innovative approaches to enhance our wholesale lending activities. This will include the adoption of a program financing package for our large wholesale lending partners." (PIA-MMIO) [top]