development bank of the philippines - part 1… · development bank of the philippines • highest...

Development Bank of the PhilippinesDevelopment Bank of the Philippineswww.devbnkphl.com.ph www.devbnkphl.com.ph

Financial Institutions and Local Governments; Partners in Sustainable Development Karlsruhe, Germany 1417 July

2016

AGENDAAGENDA

• Overview on the Philippines and DBP• The Local Government Units • The Challenges of LGUs in its Developmental

Mandate• DBP Program Lending for LGUs• A Winning Solution: Benefits to LGU and

DBP• Program Results


2016

Overview of the PhilippinesOverview of the Philippines

• A tropical archipelagic country of 7,100 islands

• South of China, north of Borneo• Malay-Spanish-American

influence


2016

Member of ASEAN, comprising newly-industrialized economies

Strong macroeconomic fundamentals, increase in

household & government spending & robust capital formation.

Healthy GDP Growth2013 6.7%

2014 7.1%

2015 6.1%


Source: Bangko Sentral ng Pilipinas, December 2015


2016


Young fast-growing population: 100 million

World’s third biggest English-speaking country

Growth drivers: Overseas Filipino workers, business process outsourcing, and revived mining sector


2016

Overview of the PhilippinesOverview of the PhilippinesThe Banking Landscape

Source: Bangko Sentral ng Pilipinas, December 2015


2016

STORY OF THE FROGSTORY OF THE FROG

Overview of the Overview of the Development Bank of the PhilippinesDevelopment Bank of the Philippines

• Highest capital adequacy ratio among 14 publicly listed banks

• 10th best among 38 banks in ROA

• 8th best among 38 KB’s in ROE

• 2013-2015 YOY highest in deposit growth

• 7th largest Universal bank in the Philippines

Financial Institutions and Local Governments; Partners in Sustainable

Development Karlsruhe, Germany 1417 July 2016Financial Institutions and Local Governments; Partners in Sustainable Development Karlsruhe, Germany 1417 July

2016


2016

Overview of the Overview of the Development Bank of the PhilippinesDevelopment Bank of the Philippines

COMPELLING MOTIVATIONS•Enhance the level of competitive industries and services sector

•Inclusive growth and poverty reduction

•Prioritizes development of areas with the highest job creation

•Promote entrepreneurship for countryside development

•Maintain the highest standards of service and corporate governance


2016

Banking On Development

DBP has gains invaluable experience in development financing , in collaboration with a network of strategic industry players


2016


Fulfilment of the Bank’s mandate as evidenced by its more prominent presence in developmental activities


2016


Fulfilment of the Bank’s mandate as evidenced by

its more prominent presence in

developmental activities


2016


Funding is composed of long-term ODA funds and a growing deposit base of inexpensive current and savings accounts

• Allows for longertenor loan,

although at higher costs

• DOF guarantee ensures

continued access by DBP

• No foreign exchange risk due to

DOF foreign exchange cover

• High pass on rate visàvis

deposit liabilities

Harnessed the power of niche

strategy

Includes deposits from GOCCs, LGUs,

and other government agencies

Continued growth of inexpensive

current and savings accounts

Transaction banking for solution

oriented products

Branch expansion, customer

centricity & quality services

ODA

Funds

Deposit

s


2016

Deposit Base

Steady growth of deposits has kept DBP abreast in terms of competitive pricing

� Sales management , sales culture and performance scorecard

� Debunked the conventional over dependence on physical branches as distribution channels

� Deploy market intelligence to refine business strategy

� Solution-oriented products for transaction banking


2016

THE LOCAL GOVERNMENT UNITS (LGUs)

Region Provinces Cities Municipality Barangays

National Capital Region - 16 1 1,706

Northern Luzon 15 15 280 6,752

Central Luzon 7 14 116 3,102

Southern Tagalog 10 21 194 5,477

Bicol Region 6 7 107 3,471

Visayas Region 16 39 369 11,444

Zamboanga Peninsula 3 5 67 1,904

Northern Mindanao 10 15 151 3,333

Southern Mindanao 9 11 88 2,357

Autonomous Region of Muslim Mindanao (ARMM)

5 2 116 2,490

TOTAL 81 145 1,489 42,036

No. of Provinces, Cities, Municipalities and Barangays by RegionAs of December 31, 2015


2016

THE LOCAL GOVERNMENT UNITS (LGUs)

• political and territorial subdivisions of the state which are divided into three (3) levels – Provinces & Independent Cities; Component Cities & Municipalities; and Barangays

• enjoy “local autonomy” wherein the President of the Philippines only exercises “general supervision”

Responsibilities: To provide the following:

1.Facilities and research services for agriculture and fishery activities2.Health services 3.Social welfare services4.Information services5.Solid waste disposal system or environmental management system6.Municipal/City/Provincial buildings7.Infrastructure facilities8.Public markets, slaughterhouses and other local enterprises9.Public cemetery10.Tourism facilities and other tourist attractions11.Sites for police and fire stations

Responsibilities: To provide the following:

1.Facilities and research services for agriculture and fishery activities2.Health services 3.Social welfare services4.Information services5.Solid waste disposal system or environmental management system6.Municipal/City/Provincial buildings7.Infrastructure facilities8.Public markets, slaughterhouses and other local enterprises9.Public cemetery10.Tourism facilities and other tourist attractions11.Sites for police and fire stations


2016

THE CHALLENGES OF LGUs IN ITTHE CHALLENGES OF LGUs IN IT’’S DEVELOPMENTAL S DEVELOPMENTAL MANDATEMANDATE


2016

THE CHALLENGES OF LGUs IN ITS DEVELOPMENTAL MANDATETHE CHALLENGES OF LGUs IN ITS DEVELOPMENTAL MANDATE


2016

DBP PROGRAM LENDING FOR LGUsDBP PROGRAM LENDING FOR LGUs


2016

A WINNING SOLUTION: BENEFITS TO LGUsA WINNING SOLUTION: BENEFITS TO LGUs

� Increase in LGU’s appetite & capacity for infrastructure projects

� Templates for feasibility studies; DIY

� Updated database for costing; heavy equipment; construction cost; hospital equipment; etc.

� Compliance with Government Procurement Law and project validation


2016

A WINNING SOLUTION: BENEFITS TO LGUsA WINNING SOLUTION: BENEFITS TO LGUs

� Catalyzing the development of key economic & social sectors

� Higher disposable income for residents, create local job opportunities

� Ease of doing business / encourage entrepreneurship

� Provide local source of revenue to LGU/ less dependence on IRA


2016

A WINNING SOLUTION: BENEFITS TO DBPA WINNING SOLUTION: BENEFITS TO DBP

� Efficient loan origination process

� Reduced Turn-Around-Time (TAT)

� Standard project evaluation/monitoring

� Incremental revenue stream – NIM, POS, ATM, Fees, FX, etc.

� Higher CA/SA deposits being LGU’s IRA-depository bank


2016

A WINNING SOLUTION: BENEFITS TO DBPA WINNING SOLUTION: BENEFITS TO DBP

� Widen coverage for “new-new” clients

� LGU retention and extended account relationship (repeat business)

� More loan approvals, higher loan volume

� Remain true to our development mission

� Manageable credit risk


2016

PROGRAM RESULTSPROGRAM RESULTS


2016

LOAN OPB AS OF YEAR END LOAN OPB AS OF YEAR END (in Php Billions)(in Php Billions)

development bank of the philippines - part 1… · development bank of the philippines • highest...

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