BIZ BUZZ: DBP, Landbank still say hard pass on merger

The dream of a financial megabank refuses to die—but neither do the objections. At some point, it may be worth accepting that some partnerships simply aren’t meant to be, especially when both sides insist they’re thriving solo.

That seems to be the case for state-run lenders Development Bank of the Philippines (DBP) and Land Bank of the Philippines. Both bank chiefs have again dismissed resurfaced merger proposals, saying the math doesn’t quite work when you’re talking about institutions with completely different mandates.

DBP President Michael de Jesus didn’t mince words: a merger simply “doesn’t make sense.” Landbank’s Lynette Ortiz apparently shares the sentiment. No new merger memo has crossed her desk, she said.

The idea of a merger once had wind in its sails under then-Finance Secretary Benjamin Diokno, who said a supersized government financial institution would eliminate redundancies and inefficiencies.

But the plan was abandoned during the tenure of Ralph Recto.

What’s fueling the buzz this time? DBP’s P36.21 billion in nonperforming loans (NPL). But while this headline figure raised eyebrows, DBP’s NPL ratio actually eased to 7.05 percent in 2025 from 7.68 percent in 2024. For de Jesus, the explanation is simple: risk comes with the territory.