DBP sees net earnings decline in first half

DEVELOPMENT BANK of the Philippines (DBP) saw its net income decline by 14.26% year on year to P3.79 billion in the first half as it booked lower foreign exchange gains and set aside more loan loss provisions.

This was down from the P4.42-billion net profit it booked in the same period last year, its unaudited financial statement showed.

DBP’s net interest income grew by 9.61% to P12.42 billion at end-June from P11.33 billion a year ago.

Broken down, interest earnings went up by 4.8% year on year to P23.84 billion from P22.75 billion, driven mainly by higher income from loans and receivables amid an elevated rate environment.

The bank’s interest expense was steady at P11.42 billion.

Meanwhile, other income fell by 21.59% year on year to P4.14 billion from P5.28 billion as DBP’s foreign exchange gains went down by 17.89% to P2.72 billion at end-June.

On the other hand, other expenses decreased by 12.99% to P7.44 billion from P8.55 billion.

The bank’s impairment provisions rose by 69.47% to P4.71 billion at end-June from P2.78 billion in the same period a year ago.

DBP’s net loans and receivables inched down by 2.6% to P471.38 billion at end-June from P483.97 billion a year prior.

On the funding side, deposits declined by 2% to P744.4 billion from P759.97 billion.

The bank’s total assets inched up by 0.87% to P974.43 billion as of June from P966.07 billion.

Its capital funds stood at P88.54 billion, up by 5.86% from P83.64 billion a year ago. — A.M.C. Sy