DBP to ask for dividend, regulatory relief as it seeks to rebuild its capital

THE DEVELOPMENT Bank of the Philippines (DBP) is planning to seek dividend and regulatory relief again from the central bank to rebuild its capital, its top official said.

- 

DBP President and Chief Executive Officer Michael O. de Jesus said the bank wants to recoup the seed capital it provided for Maharlika Investment Corp. (MIC).

“Our goal is to build up our capital,” he told reporters on the sidelines of an event on Thursday. “We've had dividend relief for the past maybe seven years.”

In 2019, DBP was exempted from remitting its dividend to the government for its 2017 earnings after its dividend rate was slashed to 0% from 50%.

It was likewise granted dividend relief for its 2022 income after President Ferdinand R. Marcos, Jr. signed an executive order as compensation for its contribution to the MIC.

Republic Act No. 7656 or the Dividends Law mandates government-owned and -controlled corporations to remit dividends equivalent to at least 50% of their earnings to the National Government.

“We need to build up as a bank. That’s why we're asking (for) dividend relief, especially so we can recover,” he added. “Remember, the bank lost P25 billion to Maharlika. So, we need to build up our capital base.”