THE DEVELOPMENT BANK of the Philippines’ (DBP) net profit climbed by 20% year on year to P7.1 billion in 2024 on increased lending.
The state-run bank’s 2024 net income was the highest in the past 10 years, it said in a statement on Thursday. This was likewise well above its P5.5-billion profit target for the year.
Its net income was driven by the 13% increase in its net core earnings as it ramped up its lending activities, DBP added.
“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,” DBP President and Chief Executive Officer Michael O. de Jesus said.
The bank’s income from its lending operations rose by 6% to P31.7 billion in 2024 from P29.8 billion a year prior, while earnings from treasury operations went up by 2% to P14.9 billion from P14.6 billion, both on the back of the high interest rate environment.
Meanwhile, DBP’s non-interest income stood at P4.04 billion amid higher earnings from fees, foreign exchange transactions, and trading gains. This was 81% higher than the target, the bank said.
DBP’s total loans expanded by 5% to P536.8 billion in 2024 from P509.2 billion in 2023.
“Out of the amount, 61% or P326.48 billion went to the infrastructure and logistics sector with projects mostly found in the National Capital Region, Metro Davao, Central Visayas, and Eastern Visayas,” Mr. De Jesus said.
The bank also disbursed P99.33 billion in loans for social infrastructure and community development projects, P55.12 billion for projects for the environment, and P26.94 billion for initiatives benefiting micro, small, and medium enterprises (MSMEs).
DBP’s capital adequacy ratio stood at 14.9% last year, up from 13.92% in 2023, while its common equity Tier 1 ratio went up to 13.98% from 13%. Both were well above the required minimum.
The bank expects its net income to reach about P7.3 billion to P7.35 billion this year, DBP Senior Vice-President Catherine T. Magana earlier said.
Mr. De Jesus earlier said they expect their loan portfolio to grow by 5% this year.
Congress this month ratified the bicameral conference report on the DBP’s new charter, which would raise the state-run lender’s authorized capital stock to P300 billion from P35 billion.
The capital boost will allow the DBP to provide financing to strategic and critical sectors such as infrastructure and logistics, MSMEs, community services, and the environment.
DBP’s new charter will also allow the bank to sell shares to the public, provided that the National Government owns 70% of its capital stock at all times, with P32 billion or 10.67% being fully subscribed to and paid for by the state.
The bank has a network of 148 branches nationwide, including 15 branch lite units. — AMCS
