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DBP Registers 19% Profi t Growth to P2.349-Billion

1st Half Financial Results

DBP Bags International Awards P2 l DBP Cited for Sustainable Project Financing P3 l Celebrating Independence Day In Style P4 l DBP Signs Agreement for Integrated Core Banking Project P16 l New Hospital in Kawit, Cavite Gets DBP Assist P16

W H A T ’ S I N S I D E

DBP registered a 19% profi t growth or a P382 million increase in net income to P2.349 Billion for the 1st half of 2015 (as of June 30, 2015). This translates to an increased annualized ROE of 11.04% signifi cantly higher vs. the 9.89% ROE same period last

year, and makes DBP on track to meeting its full year profi t target for 2015. The underlying numbers paint an even stronger performance as core income sources – revenues that are recurring and sustainable, grew at a healthy pace. Interest Income from loans posted a 20% growth, year-on-year or a P626 million increase. Earnings on Investments were higher by P122 mil l ion. These two items contributed a total of P748 Million increase in Core Income. Other Revenue and Income items also grew by a signifi cant rate – Foreign Exchange gains were higher by P840 Million, while Gains on Securities were higher by P158 Million. Interest income from Unquoted Debt Securities Classified as Loans (UDSCL) and Reverse Repurchase (RRP) dropped by P397 million. These “Other Income” items gave DBP a total P594 Million increase – compared to the P748 Million increase in Core Income – signaling the bank’s shift from one-off revenues, to recurring and sustainable income. DBP’s balance sheet has further strengthened: Assets grew by P34.6 Billion to P455 Billion, as the bank comes close to the target half-trillion assets mark, to cement its position as the 6th largest bank in the country. What is most encouraging is that Asset growth was fueled principally by a build-up in Loans to Borrowers – which grew by 18.5% Year on Year and shows a steady rise from 127.7 Billion in 2013, to P155.2 Billion as of June 2015 - again, more than fully funded by our Deposits. The Loans Growth was funded by Deposits, which added P42.1 Billion for the period, a 17% growth – led by strong growth in low cost Current and Savings or CASA.

The deposit growth enabled the bank to reduce and replace more costly fund sources from “Other Borrowings” which dropped by P10.6 Billion. On the DBP’s Performance Governance System (PGS) targets for development loans to its mandate sectors, the bank is ahead by 7% despite a shortfall on loans to LGU’s, as loans to Water Districts and Electric Cooperatives were over-exceeded. DBP was awarded the prestigious Karlsruhe Sustainable Finance Awards in the recently-concluded 2015 Global Sustainable Finance Conference. DBP won in the “Outstanding Sustainable Project Financing” categor y, highlighting the bank ’s strong leadership in sustainable development financing. This marks DBP’s second recognition from the Global Sustainable Finance Network (GSFN) for its contribution to the field of sustainable finance. DBP’s winning entries were for the P1.1-billion Cebu Bulk Water Supply Project that will produce 35 million liters of water daily to homes in central and northern Cebu (which also won the 2015 Outstanding Development Project Award, Local Economic Development category from the Association of Development Financing Institutions in Asia and the Pacific – ADFIAP) and the Palawan State University forest project, funded under DBP’s Forest Pr o g r a m . D B P a l s o w o n t h e 2 0 1 5 A D F I A P O u t s t a n d i n g Development Project Award, Corporate Governance Category for its governance policies that ensure its culture of ethics, compliance and social responsibility permeates all levels of Bank operations and practices.

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2President Gil A. Buenaventura (left) receives DBP’s ADFIAP Award from Nguyen Hoang Hai, Deputy Director of International Cooperation Department, Vietnam Development Bank. Beside him is ADFIAP chairman Pema Tshering, Managing Director, Bhutan Development Bank Ltd.

DBP was recognized for its assistance to the Cebu Bulk Water Project, under the Local Economic Development Category of the ADFIAP Outstanding Development Project Awards. The project is a new model for public-private partnership projects for bulk water supply initiatives for local economic development. The provision of a more sustainable water supply is expected to further amplify the fast-growing economic development of the Province of Cebu which owes its strong economy to many commercial and business enterprises and rapidly growing industries that include, among others, shipping, furniture -making, information technology, business process outsourcing, tourism and about nine economic zones. The project will also directly benefit more than a million residents of the province. This ADFIAP Award given to DBP recognizes its commitment in s u cce s s f u l l y p ro m o t i n g a n d d e ve l o p i n g l o c a l e co n o m i c development initiatives in the country.

DBP Bags International AwardsD BP won three awards during the recent

Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Awards held in Nha Trang, Vietnam.

DBP’s Good Governance Program won in the Corporate Governance Category of the ADFIAP Outstanding Development Project Awards. DBP believes that corporate governance is key to attaining its strategic mandate as a catalyst for sustainable development. Having this is mind, the Bank adopted governance policies to ensure that its culture of ethics, compliance and social responsibi l i ty permeates al l levels of Bank operations and practices. The Bank ’s Good Governance Program reinforces core ethical values critical to corporate governance such as integrity, excellence, teamwork, service to others and love for the Filipino, values which dictate how the Bank deals with stakeholders, i.e., the National Government, c l ients, subsidiar ies, regulatory agencies and its own officials and employees. For its good governance efforts, DBP holds the distinction of being the first GOCC to be initiated by the Institute of Corporate Directors into the Performance Governance System (PGS) in 2012. Two years later, DBP attained Compliant Status under the PGS that is administered by the Institute for Solidarity in Asia which, along with its sister institution, ICD, is the leading advocacy and accreditation agency for good governance in the public or government sector. The Bank is on track to being accredited as an Island of Good Governance, a project of the ISA that will be presented during the APEC meeting next year. This ADFIAP Award given to DBP recognizes its

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The Bank’s winning entries include the P1.1-billion Cebu Bulk Water Supply Project that will produce 35 million liters of water daily to homes in central and northern Cebu, and the Palawan State University Forest project which is a benefi ciary of the DBP Forest Program that aims to improve the environment of covered communities to create livelihood opportunities in rural settlements. While presenting the award, Arshad Rab, CEO of the European Organization for Sustainable Development said: “We congratulate the management and staff of the DBP for receiving this year’s Karlsruhe Sustainable Finance Awards. This award recognizes the exceptional achievement of DBP in sustainable project fi nancing. We join the team of DBP in celebrating their well-deserved success.” The Karlsruhe Sustainable Finance Award is a reputable award given to fi nancial institutions and organizations with outstanding contributions in the fi eld of sustainable fi nance and which embeds economic, social and environmental sustainability into their businesses and promotes growth of green fi nancing instruments and markets worldwide. The awards were jointly instituted by the European Organization for Sustainable Development, the City of Karlsruhe, Germany and the Association of Development Financing Institutions in Asia and the Pacifi c (ADFIAP). In 2013, DBP was also conferred the certifi cate of merit for its entry, the Philippine Water Revolving Fund (PWRF).

K ARLSRUHE, Germany- DBP was awarded in the prestigious Karlsruhe Sustainable Finance Awards for its success in water and forest financing projects in the recently-concluded

2015 Global Sustainable Finance Conference held here last June 11-12, 2015.

DBP won in the “Outstanding Sustainable Project Financing” category, highlighting the Bank’s strong leadership in sustainable development fi nancing. This marks DBP’s second recognition from the Global Sustainable Finance Network (GSFN) for its contribution to the fi eld of sustainable fi nance.

DBP Cited for Sustainable Project Financing

EVP Benel Lagua (right) receives the award from Diethelm Rumpel of the Economic Development Offi ce of the City of Karlsruhe and Karlsruhe, Germany Mayor Gabriele Luczak-Schwavs. (Photo courtesy of Roland Fraenkle, Press and Information Offi ce, City of Karlsruhe, Germany)

efforts in successfully integrating a good governance program as core to its business operations and mandate. DBP also received a Plaque of Merit in recognition of its “DBP Bankabil ity Enhancement for SET-UP Technopreneurs (DBP-BEST )” and “ I nc lus ive Lending for Aspir ing Women Entrepreneurs (ILAW)” projects for their significant contributions to the nation’s socioeconomic, technological and human development efforts. DBP-BEST provides small and medium enterprises access to finance and technical assistance. ILAW

supports women-owned, managed, and/or controlled small and medium enterprises. ADFIAP is an organization of development banks and other financial institutions engaged in the financing of development in the Asia-Pacific region. The annual ADFIAP Awards recognize and honor member-banks that have undertaken or assisted projects that have created a development impact in their respective countries by implementing or enhancing outstanding and innovative development projects.

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On June 11, Bank offi cers and personnel went all out to celebrate the birth of the Republic. Forty-fi ve offi cers and employees showed up dressed in their most attractive native-inspired clothes as they participated in the National Attire Day Contest titled, “Pamana.” The DBP Head Offi ce Lobby hosted an exhibit titled “Habi” that featured indigenous textiles. The said exhibit, conducted in coordination with the Filipino Heritage Festival, Inc., had actually opened a week earlier. Later in the day, three of the country’s top performers—Erik Santos, Kyla, and Darren Espanto—regaled the DBP Family with all-original Filipino music during the traditional DBP Independence Day concert at the Bulwagan ng Diwang Pilipino.

It has become a DBP Family tradition to join the Nation in the celebration of Independence Day through arts, fashion, and music that are truly, purely Filipino.

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OPENING OF

“HABI” EXHIBIT

President Armita Rufi no: “We are very grateful to DBP for joining the Filipino Heritage Fes val in its eff orts to strengthen the people’s awareness to our culture and tradi ons and to further encourage the par cipa on of more Filipinos in the preserva on of our cultural legacies.”

SVP Peralta delivers the opening remarks.

(Right Photo) DBP offi cers and employees take a closer look at the tex les on exhibit.

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Chief of Staff SVP Lutgarda Baquiran-Peralta and Filipino Heritage Fes val, Inc. president Armita Rufi no cut the ceremonial ribbon. Also in photo are SVP Antonio Owen Maramag, DBP Ins tute Head VP Ruel Rombaoa, EVP Benel Lagua, and VP Ma. Veronica Bau sta of the Offi ce of the Chairman.

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The top fi ve graduates of the MAP were also honored. They were Maria Gene Erika Reyes (third from le ), Dan Clever Gigantone, Myla Madonna Pelagio, Arianne June Abarquez, and Jacel Seno.

SVP Shotwell and EVP Robles share their thoughts on the MAP.

The 30 MAP-Batch VIII par cipants were also presented during the program. They were chosen from among 988 applicants from across the country.

AM Myla Madonna Pelagio delivers a message in behalf of the MAP VII graduates.

Twenty-six graduates of the Management Associates Program (MAP)-Batch VII were presented before the traditional DBP Independence Day concert.

The new batch of MAP graduates successfully hurdled an intensive training that started on June 27, 2014. Out of the 26 new junior offi cers, 13 have been deployed to the Branch Banking Sector. Three graduates were assigned to the Corporate Banking Sector. The other graduates were deployed to the Development Sector, Financial Resource Sector, Middle Market Group, Trust Banking Group, Offi ce of the Compliance Offi cer and Enterprise Risk Management Sector. Top photo shows the graduates with Branch Banking Sector Head EVP Anthony Robles, Corporate Banking Sector Head SVP Lilia Baun, HRM Group Head SVP Donna Shotwell, and Operations Sector Head SVP Dennis Decena.

MANAGEMENT ASSOCIATES PROGRAM

MAP VII Graduates & MAP VIII Participants

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First runner-up Jennifer Bodo of PSM

Norjannah of Al-Amanah Bank makes it to 2nd runner-up

“PAMANA”DBP Araw ng Pagpapahalaga

sa mga Kasuotang Pilipino Contest

Charles Coronejo of PSM bags the top prize

Ma. Niña Asuncion H. Oñate of Internal Audit Group Roy Purisima of Accoun ng Maricel Obidos of SPR Reylord Paez of Accoun ng

Jennifer Suguitan of Acquired Assets

Wilson Madamba of HRMG sings “Ikaw ang Pangarap” for his fellow fi nalists.

Myra Cruz of DIBIMaria Analyn Maligaya of CRMD

Airah Dinea Gonzales of FIELD

Rosendo Custodio of PSM travelled all the way from Baguio City to join the contest

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INDEPENDENCE DAY CONCERT

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The traditional DBP Independence Day Concert featured three of the best performers in the country today -- Erik Santos, Kyla, and Darren Espanto -- who treated the DBP Family and guests to the

best of Filipino music, from kundiman, pop contemporary, to RnB. It was a fi tting end to the Bank’s Independence Day festivities, as it promoted pride and love of country, and relived timeless Filipino values.

Prince of Pop Erik Santos

The Voice Kids’ Darren EspantoQueen of R&B Kyla8

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Performers gather for the inspira onal song, “Umagang Kay Ganda”

The Voice Kids Philippines 1st runner-up Darren Espanto poses with a fan

Erik Santos serenades a MAP graduate

Kyla belts a rendi on of Ka Freddie Aguilar’s “Anak”

Erik Santos performs a medley of teserye theme songs

Ferdie Merlin (second from le ), Ma. Eileen Elizalde of Branding and Communica ons and Ted Arriola of Trust Services Group, who read na onalis c poems as part of the program, join the curtain call. 9

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June 11 of every year is devoted to DBP’s celebration of Philippine Independence

Day. For many years, DBP has been an active participant in this annual celebration. The Bank’s traditional Independence Day concert features popular Filipino artists perform original Filipino music.

Highlighting the festivities is the Araw ng Pagpapahalaga sa mga Kasuotang Pilipino, wherein Bank offi cers and employees showcase their colorful Filipino costumes to showcase the Bank's distinct way of promoting indigenous costumes.

In different branches nationwide, Bank personnel participated in this traditional celebration. Some of them

have even gone to the extent of having their pictures taken in the scenic spots of their locality to showcase their colorful costumes as their own little way of celebrating Independence Day.

Here are some photos of DBP employees around the Branches proudly wearing their native kasuotang Pilipino.

Kasuotang Pilipinosa mga

Vigan Branch

Baler Branch

RMC-Central Luzon

Araw ngPagpapahalaga

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San Fernando (La Union) Branch

Baguio Branch

Balanga Branch

Maka -F. Zobel Branch

Alabang Branch

Marikina Branch

Mun nlupa Branch

Commonwealth Branch

Mandaluyong Branch

Luzon &Metro Manila Branches

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Manila Branch

Parañaque Branch

Camp Aguinaldo Branch

San Juan Branch

Manila-Nakpil Branch Valenzuela Branch

RMC-Metro Manila

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Southern Luzon & Bicol Branches

Sta. Cruz Branch

Calapan Branch

RMC-Bicol

San Jose Branch

Virac Branch

Daet Branch

Batangas Branch

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Visayas & Mindanao Branches

RMC-Eastern Visayas

Catbalogan Branch

Tagbilaran Branch

Ozamis Branch

Mangagoy Branch

Basilan Branch

Pagadian Branch

Dipolog Branch RMC-Southeastern Mindanao

Ma Branch

Mangagoy Branch

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The Board of Directors of the Al Amanah Islamic Investment Bank of the Philippines (Al-Amanah Bank) has appointed Isidro Abas Sobrecarey as its new Chairman and Chief Execu ve Offi cer.

Prior to his elec on as Chairman and CEO, Mr. Sobrecarey was appointed by President Benigno S. Aquino III as member of the Board of Al-Amanah Bank.

Mr. Sobrecarey brings to Al-Amanah Bank his experience in development banking and fi nance.

He was formerly Head of the DBP Ins tute and Corporate Aff airs, and Regional Manager of DBP’s Southern Mindanao Region. He also held execu ve posi ons in the UN-affi liated Associa on of Development Financing Ins tu ons in Asia and the Pacifi c (ADFIAP), San Miguel Corpora on, Philippine Export-Import Credit Agency, Public Estates Authority, and Presiden al Management Staff .

He was a faculty member of the University of Asia and the Pacifi c, and Associate Director of Asian Ins tute of Management’s Gov. Jose B. Fernandez, Jr. Center for Banking and Finance.

Mr. Sobrecarey was an awardee of the Lester B. Pearson Fellowship from the Interna onal Development Research Centre in O awa, Canada, and UN Fellowship from the United Na ons Centre for Regional Development in Nagoya, Japan.

He fi nished AB Economics at Xavier University, Cagayan de Oro, took up graduate courses in Economics at Ateneo de Manila University, and obtained MA in Development Economics at Williams College, USA.

Al-Amanah Bank is a subsidiary of DBP.

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DBP cited by PhilHealth. DBP was cited by PhilHealth for its invaluable support to the la er’s premium collec on services. DBP Commonwealth Branch Head Mgr. Nicolas Dizon and SM Monagie Matammu of Transac on Banking Department received a plaque of apprecia on and cer fi cate of recogni on during the 4th Annual Agents Forum held recently at the Dusit Thani Hotel in Maka City.

The Bank has been an accredited collec ng agent of PhilHealth for the past 16 years. In 2009, DBP became the fi rst accredited bank to collect Philhealth premium contribu ons from overseas Filipino workers.

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It was a hot May morning when Jose Muldong of the Offi ce of the Corporate Secretary found a wallet on the fl oor of the MRT train. Upon arriving at the DBP

head offi ce, he immediately surrendered the wallet containing cash, important iden fi ca on cards, and credit/ATM cards to his boss, SVP Danny Bunyi, who then arranged for the wallet to be returned to its owner.

The owner of the wallet, Dr. Hossein Faiyaz, M.F., is the execu ve director for Religion at the Embassy of the Islamic Republic of Iran. Dr. Faiyaz then wrote a le er to the Bank commending Mr. Muldong’s honesty and integrity, part of which read:

“I wish and will pray very hard that this world could have a billion people like him, trained and disciplined by wonderful policy makers in the Philippines.”

Indeed, Mr. Muldong’s gesture is worth emula ng especially in an era where honesty and integrity are slowly becoming rare traits. He has defi nitely shown that these virtues remain very much alive in the DBP.

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DBP Balanga Branch head AVP Ma. Cris na Pimpinio (le photo, in yellow blouse) was one of the delegates to the recent Asia-Pacifi c Economic Coopera on (APEC) workshop on Fiscal Management through Transparency and Reforms held last June 9-10 in Bagac, Bataan. The workshop was held at the heritage hotel Las Casas Filipinas de Acuzar which features 18th to early 19th century Filipino heritage houses mostly inspired from the Spanish occupa on.

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President Buenaventura said: “As we move to the implementation phase, it is paramount to put on board all the stakeholders of the project. We shall ensure that this project is managed by an experienced team of professionals to ensure communication and coordination among all key stakeholders.” “With the Core Banking project, the Bank shall be implementing a fully integrated solution comparable with the best banking system solution in the local and global industry,” added Chief Information Officer FSVP Nilo Cruz. The core systems shall cover the deposit, lending, general ledger, management information systems, and various interfaces with the existing systems of the Bank. The successful implementation of the project is seen as a step to further improve DBP’s customer service processes, enhance employee efficiency, and reduce operational costs.

DBP Signs Agreement for Integrated Core Banking Project

DBP recently signed an agreement with the Joint Venture of Kaisa Consulting Company and Polaris Consulting and Services Limited for the development, customization and

implementation of DBP’s Integrated Core Banking Solution (ICBS) project.

DBP has granted a P300-million loan to the San Pedro Calungsod Medical Center, Inc. (SPCMCI) for the construction of a seven-storey, level-2 hospital building in Kawit, Cavite.

The new medical center with a 100-bed capacity will be located along the Centennial Road and shall serve the medical needs of residents of the northern part of the province, as well as those living in the southern part of Metro Manila. It will provide quality outpatient and inpatient health services as well as more efficient and affordable distribution of level 2 health services in its service area. Consequently, bed-to-population ratio in Kawit will

DBP BULLETIN is published for personnel and friends of the Development Bank of the Philippines by the

Branding and Communica ons Department with offi ce address at the ground fl oor DBP Head Offi ce Building, Sen. Gil J. Puyat

corner Maka Avenues, Maka City.

Telephone number: 815-0904 Website: www.devbnkphl.comE-mail address: info@dbp.ph

Entered as Second Class Mail Ma er at the Manila Post Offi ce on October 20, 1970.

SVP ANTONIO OWEN S. MARAMAG

JAYVEE P. CORTEZ

NEIL B. DIAZMA. AILEEN I. ELIZALDE

AM GIL C. FULMINAR

ROLANDO L. CARCAMO

LYNDON A. JOSON, RODOLFO D. CASTRO, JOSELITO P. ALANO

EDITORIAL ADVISER

EDITOR

WRITERS

ART DIRECTOR

CREATIVE ARTIST

PHOTOGRAPHERS

New Hospital in Kawit, CaviteGets DBP Assist

improve from 1:1,817 to 1:564 with the additional 100 beds. This project will address the health-related Millennium Development Goals namely improvement of maternal health, reduction of child and infant mortality and control of communicable diseases. The loan will also be used for the acquisition of modern medical equipment and permanent working capital of SPCMCI.

DBP Regional Marketing Center-Southern Luzon head VP Abelardo Monarquia (right) is shown shaking hands with SPCMCI chairman, CEO and president Dr. Emmanuel Diaz after the loan agreement signing held recently. Also in photo are offi cers of DBP and SPCMCI.

Shown during the contract signing are (from left): Polaris Software Lab (Phils.) Compnay Inc. SVP and Country Manager Loh Jwoo Lih, and Intellect-Polaris Software Lab Compnay Inc. CEO Jaideep Billa, DBP-Core Banking Selection Committee chair SVP Dennis Decena, Polaris Consulting and Services Limited CEO Jitin Goyal, President Buenaventura, Kaisa Consulting Company Managing Director Carlos Villegas, Jr., and Chief Information Offi cer FSVP Nilo Cruz.