DBP Posts P4.6-Billion Profits in 2014

State-owned Development Bank of the Philippines (DBP) posted net profits of P4.6-billion for the full year ending December 31, 2014, down 13% from the P5.28-billion in 2013. This translates to a Return on Equity of 11.01% and a Return on Assets of 1.03%.

Trading gains declined by P2.084-billion, from P2.762-billion in 2013 to P678-million in 2014. This was offset by higher interest income from investments in debt securities (+P1.472-billion) and regular loans (+P870-million) and higher foreign exchange gains (+P287-million). The growth in income from loans and investments marks the shift to more recurring sources of income, in line with the bank’s strategic direction to re-focus on its core lending and investing businesses. In government securities, the bank showed increased presence in the financial markets. The Bureau of Treasury awarded DBP as the 3rd Best Performing Government Securities Eligible Dealer in 2014, a big jump from its 10th rank in 2013.

Total deposits climbed 17% to P293.5-billion paced by low cost funds (Current and Savings Accounts or CASA), which grew by 8.5% to P201.0-billion, to result in a 68% low cost to high cost deposit ratio. The high deposit growth rate, coupled by the high proportion of low cost funds, helped the bank improve on its net interest margin to 2.34% from 2.15% in the previous year.

The bank’s total resources went up by 9% to P467.5-billion, nearing the half-trillion mark from P427.3-billion in 2013. Net loans and other receivables increased by 24% or P38.4-billion to P199.7-billion, with the bulk of the increase accounted for by regular loans (P18.8-billion). The bank’s Capital Adequacy Ratio (CAR) stood at 20.91% well above the Bangko Sentral ng Pilipinas’ 10% minimum requirement.

The bank’s developmental loans increased by P9.648-billion or 8.7% in 2014 vs. previous year, to comprise 83% of its total loan portfolio. This is led by the over-achievement in its “breakthrough goals” of loans to its core mandate sectors of Local Government Units (LGUs), Water Districts and Electric Cooperatives as loan approvals for 2014 breached the P28-billion mark vs. the bank’s target of P18-billion under its Performance Governance System where the bank achieved Compliance Status in October, 2014 and for which it won a Silver Trailblazer Award.

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