 Company’s Background

 Financial Statements
 Financial Analyses
 Recommendation
The Development Bank of the Philippines (DBP or the “Parent Bank”), created under Republic Act
No. 85, as amended by Executive Order No. 81 dated December 3, 1986, primarily provides banking
services principally to cater to the medium and long-term financing needs of agricultural and
industrial enterprises particularly in the countryside with emphasis on small and medium-scale
industries. The Parent Bank also provides financial assistance to participating financial institutions
for on-lending to investment enterprises and direct to borrowers as may be required by its catalytic
role in the economy. It is likewise involved in other activities including investments in government
and private financial instruments.

The Bangko Sentral ng Pilipinas (BSP), in its letter dated December 20, 1995, granted the Parent
Bank the permit to operate as an expanded commercial bank (EKB). The Parent Bank commenced
operation as an EKB on February 7, 1996.

The Parent Bank and its subsidiaries referred to as the Group are engaged in development banking,
financing, management services, computer services, leasing and remittance services.
Its principal place of business is at Sen. Gil J. Puyat Avenue Corner Makati Avenue, Makati
City.

As of December 31, 2016, the Group had 2, 863 employees (2015 – 2, 649) and operated a
total of 120 branches nationwide.

These financial statements have been approved and authorized for issuance by the Board
of Directirs of the Parent Bank on May 19, 2017 under Board Resolution No. 0161
 Development Bank of the Philippines
Statement of Changes in Equity
For the years ended December 31, 2016 and 2015
(In thousand pesos, except per share amounts)
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

Year 2016
524 674 355 / 458 505 510 = 1.14:1 or 114.43%
QUICK RATIO = QUICK ASSETS / CURRENT LIABILITIES

Year 2016
363 714 432 / 458 505 510 = 0.79:1 or 79.33%
WORKING CAPITAL = CURRENT ASSETS – CURRENT LIABILITIES

Year 2016
524 674 355 – 458 505 510 = 66 168 845
OPERATING INCOME / INTEREST EXPENSE

Year 2016
5, 600, 431 / 7, 697, 756 = 0. 73:1
TOTAL LIABILITIES / TOTAL ASSETS

Year 2016
493, 509, 867 / 537, 819, 032 = 0.92:1
TOTAL EQUITY / TOTAL ASSETS

Year 2016
44, 309, 165 / 537, 819, 032 = 0. 08:1
NET SALES / FIXED ASSET – ACCUMULATED
DEPRECIATION

Year 2016
19, 246, 203 / 4, 277, 543= 4.50:1 or 449. 94%
 Profit / Sales

4 246 055 / 19 246 203 = 0.22:1 or 22.06%

 Net Income/Shareholder’s Equity

4 246 055/44 309 165 = 0.09:1 or 9.58%

 Operating income / Net Sales

5 600 431 / 19 246 203 = 0.29:1 or 29.10%

 Net Income / Total Assets

4 246 055 / 537 819 032 = 0.007:1 or 0.79%

 Operating Income/Total Assets

5 600 431/537 819 032 = 0.01:1 or 1.04%

RECOMMENDATION