DBP braces for softer 2025 earnings as provisions rise

The Development Bank of the Philippines (DBP) is preparing for a modest dip in earnings this year as it boosts loan loss reserves amid emerging asset-quality risks linked to the infrastructure sector.

- By KEISHA TA-ASAN

DBP president and CEO Michael de Jesus said the bank’s net income in 2025 would be “slightly less than last year,” driven mainly by higher provisioning.

“We have a few nonperforming loans. I would say big amounts, but not too many. So we have to reserve for those. That will affect our net income,” he said, adding that DBP aims to fully provision its bad loans.

Given this plan, De Jesus expects the bank’s income to take a hit. “That will affect our net income by maybe P1 billion to P2 billion less this year,” he said. “But the impact will be short-term. Next year, we will recover. We expect a strong 2026.”