State-owned Development Bank of the Philippines (DBP) reported a net income of P2.83 billion in the first six months of 2010, or an increase of 34 percent from the P2.11 billion posted during the same period last year.

This was highlighted by former DBP president & CEO Reynaldo G. David during a recognition and farewell program tendered for his honor held recently at the DBP headquarters in Makati City.

“I believe I am leaving DBP on a very high note,” David said in his farewell speech. David added that he has helped DBP achieve the right size of its personnel structure, while implementing efforts at cost containment and efficiencies across operations that have helped it strengthen the Bank’s risk structure and balance sheet.

The bank’s capital adequacy ratio (CAR) improved from 20.34% in 2009 to 23.12% as of May 31, 2010, which demonstrates DBP’s stability and growth. The said figure is above the 10% mandated by the Bangko Sentral ng Pilipinas. DBP’s net worth also improved by 2.53%, from P37.07 billion in 2009 to P39.6 billion in 2010.

Growth of DBP’s deposit levels continued its upward trend, improving by 15.27%, from P104 billion in the first six months of 2009 to P119.27 billion in deposits during the same period this year. Total assets also grew from P259.58 billion in 2009 to P283.43 billion this year, with total loans reaching P143.16 billion.

David also revealed that DBP is prepared for the forthcoming Basle 3 standards of banking regulations and supervision, especially in addressing the need to preserve and boost capital, limit the extent of coverage, and ensuring that the bank has “enough cushion and shock absorbers.”

He added that DBP has achieved a lot in achieving its development mandate especially in assisting micro, small and medium enterprises by preparing template procedures and processes for the sector. He cited the Bank’s venture capital initiatives that will provide SMEs with DBP’s equity brand stamp of approval and akin to a reputational jumpstart for other lenders.