The Development Bank of the Philippines (DBP) is targeting P20 billion in additional deposits this year as it positions itself for a stronger capital base amid the global financial crisis.
DBP President Reynaldo David said one of the improvements the bank is aiming for this year is a larger deposit base from retail and private accounts.
"We will be doing more retail banking. We will be more agressive in deposit generation so that we can have more sources of funds for lending aside from official development assistance loans," he noted.
It was in line with this aim that DBP introduced five new deposit instruments to reach a wider group of consumers. These include the Deposito ng Bayaning PIlipino Double Your Money program for overseas Filipinos, the Young Earners Savings (YES) account for children aged 12 years old and below, the Wisdom Account for seior citizens, the High Earners Account for high net worth individuals, and the Payroll Plus savings account for employers and employees.
The Double Your Money program aims to double an OFW's savings in nine years, with payment to be made at maturity, while the YES account provides an additional interest rate on top of the regular savings rate upon the opening of the account.
The Wisdom account yields higher net interest rates too and can be converted into a time deposit account once the deposit reached P50,000.
The High Earners Account is a time deposit account with interest that can be paid upon the opening of the account, with a minimum deposit of P1 million, while the Payroll Plus account offers a lower maintaining balance for employers, and totally waives the maintaining balance for employees. Employees can also enjoy no service charges for up to four ATM withdrawals per month using other banks' ATMs.
Edgardo Garcia, chief operating officer of DBP, said local government deposits currently make up majority of deposits in the bank, with only 30 percent of the total belonging to private accounts. With the five new instruments, he said, DBP hopes to generate P20 billion worth of additional deposits by year-end.
"That P20 billion is high, considering we are not in retail banking. Our goal for the long term is to hit at leat 50-50, 50 percent private deposits and 50 percent local government deposits," said Garcia.
DBP's net income hit P3.6 billion in 2008, up from P2.7 billion in 2007. Its capital adequacy ratio remains one of the highest in the industry at 25 percent, above the 10 percent benchmark set by the central bank.