PHILIPPINE GUARANTEE Corp. (PhilGuarantee) posted a net income of P1.37 billion in 2021, close to triple the figure seen a year earlier, as cost-to-income outcomes improved, the Department of Finance (DoF) said.
The state-run firm’s net income rose by 182% to P1.37 billion in 2021 from P487 million the previous year, the DoF said in a news release Monday.
PhilGuarantee President and Chief Executive Officer Alberto E. Pascual said in a report to the DoF that cost-to-income outcomes, which assesses efficiency by measuring costs as a proportion of income, improved to P850 million last year from P1.16 billion in 2020.
He said the company’s income from loan guarantees in 2021 reached a total of P1.59 billion, slipping by 2% from P1.62 billion a year earlier.
Meanwhile, its non-guarantee income rose by 176% year on year to P2.32 billion from P839.6 million.
PhilGuarantee provides credit guarantees to housing, micro-, small-, and medium-sized enterprises (MSMEs), and agriculture, along with other industries prioritized by the government.
“Sources of guarantee income were guarantee fees from loans for MSMEs and the agriculture sector; guarantee premiums from housing loans; and application, service and commitment fees,” the DoF said.
The state guarantee finance agency registered an outstanding guarantee portfolio of P182.9 billion as of end-December.
Assets inched up by 6% to P60.88 billion, while liabilities declined by 9% to P34.32 billion.
“PhilGuarantee is currently disposing its big-ticket assets located in the cities of Manila, Quezon, and Mandaluyong to generate an additional P7.33 billion in income this year,” the DoF said, quoting Mr. Pascual.
The company’s total equity grew by 36% to P26.56 billion.
According to Mr. Pascual, the corporation assisted 6.5% more beneficiaries last year for a total of 202,269 small business entrepreneurs, housing borrowers, and agri-fisheries workers.
“(PhilGuarantee) also partnered with an aggregate 128 banks and other financial institutions for the various credit guarantee facilities,” the DoF said.
President Rodrigo R. Duterte in 2018 merged and transferred the functions of agencies performing loan guarantee into one corporation, or PhilGuarantee. — Jenina P. Ibañez
