Increased loans boost DBP’s 2024 earnings by 29% 

Development Bank of the Philippines (DBP) reported it exceeded its net income target by 29 percent, as its earnings reached P7.1 billion in 2024, on the back of increased lending to key sectors, according to a report by BusinessMirror.

In a statement issued last Thursday, the DBP said it reached its P5.5-billion income target, posting P7.1 billion in earnings, the highest in the past 10 years.

DBP’s net income expanded by 20 percent from P5.9 billion in 2023, primarily driven by the 13 percent increment in its net core earnings, according to DBP President and CEO Michael O. de Jesus.

“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 was quoted in the statement as saying.

DBP’s lending operations went up by 6 percent to P31.7 billion in 2024 from P29.8 billion in 2023. Meanwhile, its income from treasury operations inched up to 2 percent to P14.9 billion from P14.6 billion due to the rise in interest rates.

Further, DBP’s non-interest income also surpassed its target by 81 percent to P4.04 billion driven by higher earnings from bank fees, foreign exchange transactions and trading gains.

Loan disbursements also reached P536.8 billion in 2024, 5 percent higher than the P509.2 billion extended in 2023.

About 61 percent or P326.48 billion was allocated to the infrastructure and logistics sector with projects mostly found in the National Capital Region, Metro Davao, Central Visayas, and Eastern Visayas.

The bank also loaned P99.33 billion to projects for social infrastructure and community development, P55.12 billion to projects for the environment and P26.94 billion for micro, small, and medium enterprises.

As a result, DBP’s capital adequacy ratio stood at 14.90 percent as of the end of 2024. This is higher than the 13.92 percent recorded during the same period a year ago.

The lender’s common equity tier 1 capital ratio also settled at 13.98 at year-end 2024, higher than the 13 percent recorded in 2023.

“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,” de Jesus said.

DBP is the 10th-largest bank in the country in terms of assets and provides financing to strategic and critical sectors such as infrastructure and logistics, micro, small and medium enterprises, community services and the environment.

DBP has a branch network of 148 branches including 15 branch lite units located primarily in remote and underserved areas of the country.