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DEVELOPMENT Bank of the Philippines (DBP) saw its net income surge by 82% year on year in the first quarter as it continued to boost its lending to its priority sectors.

The state-run lender’s net income stood at P1.608 billion at end-March, its financial statement showed. DBP said this was up from P571 million a year ago.

“DBP’s strong financial performance in the first quarter is reflective of the robust performance of the local banking industry that has greatly benefitted from the stable macroeconomic environment brought about by the sound economic policies of President Ferdinand R. Marcos, Jr.,” DBP President and Chief Executive Officer Michael O. de Jesus said in a statement on Tuesday.

“We expect another banner year for the bank given the favorable economic landscape even as we pursue more programs and initiatives that would contribute positively towards the ‘deep economic and social transformation as embodied in the Philippine Development Plan’ 2023 to 2028.”

Mr. De Jesus said the increase in its first-quarter net profit was driven by “significant increases in interest income from its lending and investment portfolio.”

The bank’s net interest income was at P7.14 billion in the first three months. Interest income stood at P12.83 billion, while interest expense was at P5.69 billion.

Loans to borrowers rose to P519 billion in the period from P509 billion a year ago. “About 60% of DBP’s total loans, or P314.7 billion, went to the infrastructure and logistics sector with most of the projects located in the National Capital Region, Central Luzon, Davao, Eastern Visayas, and Central Visayas,” Mr. De Jesus said.

The bank also disbursed P96.7 billion in loans to projects for social infrastructure and community development, P47 billion for environment-related projects, and P25 billion for micro, small, and medium enterprises, he added.

DBP’s other income stood at P771.67 million.

Meanwhile, the bank’s operating expenses stood at P4.07 billion.

Total deposits rose by 9% to P820.84 billion in the quarter from P756 billion a year ago.

DBP’s total assets expanded by 7% to P1.04 trillion as of March from P977 billion in the same period last year. Total capital was at P97.17 billion.

The bank’s net worth stood at P97 billion, up by 11% from P87 billion a year ago.

DBP has a total of 150 branches, including 14 branch-lite units.

Mr. De Jesus said the bank “will continue to be aggressive in pushing for programs in support of the National Government’s economic agenda, especially those that promote infrastructure development, food sufficiency, and energy security, while ensuring that it remains responsive to the banking needs of its clients.” — A.M.C. Sy