By Rea Cu, January 31 2019; Business Mirror
Image Credit to Business Mirror
THE Home Development Mutual Fund (Pag-ibig Fund) has reported a net income of P33.17 billion for 2018, an increase of 9.5 percent compared to the 2017 level of P30.27 billion.
The good news was shared at the Pag-Ibig Fund’s 2018 Chairman’s Report on Wednesday at the Philippine International Convention Center (PICC), by fund Chairman Eduardo D. del Rosario.
He said the net income for 2018 is the highest level recorded for the agency, with the increase being attributed to operational efficiencies.
“But while our gross income was lower than last year, still we achieved our highest level of net income in 2018…. Such increase in our net income is attributable to our operational efficiencies,” he added.
The gross income of the agency recorded a decline of 9.4 percent for the year, at P48.92 billion coming from P54.02 billion in 2017. This was attributed to the revaluation done in 2017 for its real and other properties acquired worth P6.06 billion.
The recorded increase in net income, del Rosario pointed out, will enable Pag-IBIG Fund to provide dividends to its members amounting to P28.23 billion at a dividend rate of 6.91 percent for regular Pag-IBIG savings and 7.41 percent for the Modified Pag-IBIG II program.
Member savings for the year also reported an increase of 11 percent, or P40.27 billion coming from P36.27 billion in 2017.
The number of home loan borrowers for the agency also rose 12 percent, reaching 90,375 from 80,964 in 2017.
This led the Fund to report its highest income loan takeout for the year of P75.31 billion, increasing by 16 percent compared to the 2017 level of P65.1 billion.
Total assets of the Pag-IBIG Fund for 2018 amounted to P533.45 billion, an increase of 9 percent compared to P488.74 billion in 2017.
“As early as May 2018, we already breached the P500-billion asset level,” he said.
He said the Pag-Ibig Fund was included in the 2017 list of the top 10 government corporations based on gross and net income, with the agency taking the eighth spot for gross income, and ranking second in terms of net income.
“When it’s analyzed, we can see that Pag-IBIG is No. 1 in terms of profit margin ratio at 56 percent for 2017, while for 2018 we inched up further from 56 percent to 64 percent,” he added.
The agency was also reported to have a 96-percent customer satisfaction rating based on a third- party survey conducted by Market Relevance Corp. for September to October 2018.
“We at Pag-IBIG Fund make extraordinary things seem ordinary,” said the Fund’s CEO Acmad Rizaldy P. Moti.