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DBP STRATEGIC THRUSTS AND

DIRECTIONS FOR THE

MEDIUM TERM 2011-2016

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STRENGTHS, WEAKNESSES,OPPORTUNITIES AND THREATS

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STRENGTHS

Human Resources

Serves as major bank of government

agencies; duopoly of government deposits

Ability to secure deals thru government

networks Recognized with awards from various

institutions

Strong balance sheet

Industry high CAR

Competent, well-trained and motivated

officers and staff

Strong management

Brand andConnections

Financial Stability

Expertise in financing development projects

Access to ODA facilitiesDevelopmentMandate

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Limited branch network and infrastructure

Development mandate may temper

returns on lending activities

High dependency on ODAs resulting in

higher cost of funds

Thinning margins

Deposit base is limited and is not

diversified; high dependency on

government deposits Credit concentration high among the thirty

biggest borrowers

Constraints inStructure, Mandateand Business Model

WEAKNESSES

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Administrations development thrusts are alsoDBPs thrusts (infrastructure, logistics,

MSMEs, social services, and environment)

Launch of Governments Public Private

Partnership program, with DBP as financial

advisor, gives the Bank a head start in PPPinfrastructure financing

IPOs, trade credits, investment banking

particularly issuance of bonds Bank can offer high net worth individuals with

array of investment outlets

Equity investments and fixed income trading

opportunities

Investment

Banking/CapitalMarketDevelopment

Strategic ThrustsAligned withNational Thrusts

OPPORTUNITIES

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Increase in number of branches can generatemore deposits, especially in the private sector

Government property procurement and

building acquisition programs

Possible merger with Land Bank can transform

DBP into a bigger player

Early Retirement Incentives Package facilitates

career growth of promising personnel and

allows the Bank the opportunity to infuse freshblood

Completion of Information Systems Strategic

Plan (ISSP) modernizes the Banks operations

and makes it more competitive and efficient

ContinuousOrganizationalDevelopment

Expansion

OPPORTUNITIES

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Possible loss of duopoly over government

deposits because of bill seeking to allow

private banks become government

depositaries

Possible merger of DBP and Land Bank;

reorganization may have impact on

security of tenure, benefits andcompensation

THREATS

Market Environmentand RegulatoryRequirements

Low interest rate and high liquidity regime

Active bond market tends to crowd out

borrowing

Low demand for loans, especially in

project financing

Demand for increase in dividends vs.

need to comply with Basel accord

Effects of NationalPolicy Actions

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Business Continuity

THREATS

Early Retirement Incentives Package to

result in loss of key personnel, expertise

and institutional knowledge especially in

senior positions

Discontinuity in decision-makingespecially in Bank committees and

subsidiaries

Limited bench; no institutionalized talent

pool