By Eileen Mencias
The Development Bank of the Philippines (DBP) reported a 51% drop in consolidated net income to ₱3.66 billion in 2025 as a surge in provisions for potential loan losses outweighed stronger interest earnings.
The state-owned lender’s profit fell from a restated ₱7.39 billion in 2024, weighed down by weaker foreign exchange gains and higher operating expenses.
Impairment and credit loss charges on loans and receivables nearly doubled to ₱13.39 billion from ₱7 billion, according to notes accompanying the bank’s financial statements.
The charges reflect expected credit losses rather than loans actually written off during the year.
Including provisions and reversals on other assets, total impairment expenses climbed 76% to ₱13.32 billion, offsetting a 10% increase in net interest income to ₱29.19 billion.
After impairment charges, net interest earnings fell to ₱15.87 billion from ₱18.86 billion.
DBP’s gross nonperforming loans rose to ₱47.36 billion from ₱43.65 billion, although their share of the total loan portfolio declined to 7.15% from 7.81%.
Allowances for nonperforming loans increased to ₱33.92 billion from ₱23.38 billion, reducing net nonperforming loans to ₱13.44 billion from ₱20.27 billion.
Foreign exchange gains plunged 60% to ₱930 million, while other expenses increased 5% to ₱18.16 billion. Higher securities trading income partly cushioned the decline.
On a standalone basis, DBP’s net income dropped 43% to ₱4.17 billion from ₱7.30 billion.
The bank ended 2025 with consolidated assets of ₱1.05 trillion, up 8% from a year earlier, while deposits rose to ₱799.66 billion.
Net loans and receivables, however, declined to ₱494.09 billion from ₱506.29 billion.
