State-owned Development Bank of the Philippines (DBP) said its net income in the first quarter of the year dropped by half from the year-earlier level due to lower trading gains.
DBP said net income in the first quarter fell to P735 million from P1.52 billion a year ago as growth in interest income failed to compensate for the drastic drop in trading gains during the period.
“This year, however, interest rates started to rise, giving less opportunity to the banking industry, including DBP, to realize as much in trading gains. DBP will be relying more on interest accrual income from loans and investments this year as can already be seen in the growth of interest income in the first quarter,” it stated.
The bank said interest income in the first quarter grew by 22 percent, brought about by intensified loan and investment activities which strengthened its portfolio.
Total loans and investments grew to P310.2 billion as of end of first quarter from P274.6 billion in March 2013.
Deposits grew by an impressive 65 percent to P245.1 billion from P148.4 billion in the same period last year, spurred by renewed focus on its existing client base of local government units and new client acquisitions.
The number of new accounts opened for the period grew by 47 percent compared to the past year.
Meanwhile, the state-owned bank said it remains well-capitalized as it ended the first quarter with a capital adequacy ratio of 18.51 percent and loan loss provisioning cover of 100 percent.
DBP said it will open 10 new branches this year to improve accessibility of its branch network and offer greater convenience to its target markets.
“This expansion will be undertaken alongside improvements in internal processes, technology, and organization,” it said.
The bank also expanded and strengthened its delivery channels by deploying 60 new ATMs and installing seven new Point of Sale (POS) terminals in the first quarter, with 60 new ATMs and 50 additional POS terminals to be completed within the year.