THE Development Bank of the Philippines (DBP) logged an 81-percent rise in net income in the first nine months of 2026, driven by reduced loan loss provisions and strong foreign exchange gains.
The state-owned bank’s net income grew to P4.098 billion as of September from P2.256 billion in the same period last year, its latest financial statement showed.
Net interest income after provision for impairment improved by 39.51 percent to P14.433 billion from P10.345 billion a year ago.
This, as provision for impairment eased to P8.607 billion, down by 21.88 percent from P11.019 billion.
The bank’s interest income slipped by 2.44 percent to P38.486 billion from P39.451 billion a year earlier, as earnings from loans and receivables, financial assets and deposits with banks declined.
Despite this, foreign exchange profits more than doubled to P1.395 billion from P553.877 million last year.
This offset the 96.15-percent drop in trading gains, which fell to P25.564 million from P664.886 million, sustaining other income at P3.099 billion, which was 2.02 percent lower year-on-year than P3.163 billion.
Meanwhile, interest and other financial expenses on bills payable and other borrowings and deposits declined by 14.60 percent year-on-year to P15.445 billion from P18.086 billion.
Together, this increased the bank’s net income before income tax to P4.868 billion, 240.65 percent higher than the P1.429 billion recorded a year earlier. Provision for income tax amounted to P770.131 million.
As of September, the total resources of the country’s ninth-largest bank in terms of assets reached P1.093 trillion, while its liabilities and capital funds totaled P992.218 billion and P100.891 billion, respectively.
Earlier this year, DBP saw its rating outlook lowered to ‘stable’ from ‘positive’ by Standard and Poor’s Global Ratings. Fitch Ratings also revised its outlook to ‘negative’ from ‘stable.’
The revisions mirrored the Philippines’ sovereign rating outlook as its ratings are tied directly to the sovereign credit profile and the government’s capacity to provide support.
DBP provides credit support to four strategic sectors of the economy-infrastructure and logistics; micro, small, and medium enterprises; environment; social services and community development.