Ours is a history of banking for development. With roots that trace back to the Commonwealth period when the early infrastructure for development financing was laid by the government, we were formed in 1958 through the re-organization brought about by changes in the management of government trust funds, assets and resources. Expanding our facilities and operations to accelerate national development efforts, we established a network of branches throughout the country, delivering substantial benefits in capital formation, employment generation and increased revenues, particularly in the countryside.
In 1986, we implemented an institutional strengthening program covering a thorough revision of the credit process and a training program for the intensive implementation of new lending thrusts, reopening our lending windows for housing, agriculture, and small-and medium-scale industries. In 1995, we were granted an expended banking license and attained universal banking status.
With a permit to operate as an expanded commercial bank granted by the Bangko Sentral ng Pilipinas on December 20, 1995, we began to serve the following markets: depositors; borrowers, potential and existing investors; local government units; private corporations and businesses; financial institutions and banks,; micro, small and medium enterprises; and the general public.
Today, we are classified as a development bank that may perform all other functions of a thrift bank. Our new charter enables us to achieve our primary objective of providing the best banking services to small-and medium-scale agricultural and industrial enterprises as well as to individuals. We give financial assistance to participating financial institutions for lending to investment enterprises and direct borrowers. We are also involved in other activities, including investments in government and private financial instruments.
In line with President Benigno Aquino III’s policy of “Tuwid na Daan,” we created in 2012 the DBP Corporate Governance Office, a department dedicated to overseeing our good corporate governance initiatives. We also hold the distinction of being the first GOCC to be initiated into the first phase of the Performance Governance System by the Institute of Corporate Directors in 2012.
Fulfilling our social and economic purpose does not mean compromising on profits. Our consistent strong financial performance is proof that “doing good also pays good dividends.” By creating value for our stakeholders, our bank is able to attract deposits and build a strong capital base from which to provide for the credit needs of the sectors we serve.
In 2013, the bank generated a net income of P5.18 billion. A total of P112.61 billion went to the financing of infrastructure and logistics, environment, social services, micro, small and medium enterprises, and other priority sectors. We continued to remain true to our mandate of supporting countrywide development with at least 85% of DBP’s loan portfolio dedicated to developmental projects.
When we evaluate projects for financing, our paramount consideration is: how they are able to benefit the greatest number of our countrymen. We regularly examine the positive impact of what we do on the communities we serve to see how we can further enhance it. In our efforts to make economic gains felt by more Filipinos, we continue to reach out and serve the wider spectrum of population, especially the disadvantaged and underserved sectors.
Widening access to finance is one of the important things we do to help secure sustainable growth. Nowhere is this more manifest than in our focus on Micro, Small and Medium Enterprises that serve as the backbone and growth engine of the economy, as they comprise the bulk of the country’s industry and trade and contribute the greatest in generating employment and creating economic opportunity.
Investing in Communities
Though the main impact of our institution stems from our core banking business, investing in communities remains a vital element for the sustainability of our business, since it is closely intertwined with the progress and health of the communities we serve. By ensuring that the projects we finance benefit the communities we serve, we also ensure that their interests are likewise served.