THE HOME Development Mutual Fund (Pag-IBIG Fund) saw its net income rise by 10% to a record P33.17 billion in 2018, driven by robust loan payment collections and improved operational efficiencies.
“We previously said that 2017 was our best year ever. But the year 2018 was even better. Pag-IBIG Fund earned P33.17 billion in net income which is the highest net income in the history of the Fund,” Eduardo D. del Rosario, chairman of the Pag-IBIG Fund Board of Trustees, was quoted as saying in a statement.
The Pag-IBIG Fund said it has sustained double-digit growth in the last five years and doubled its net income over a four-year period. Total assets also grew by 9% to P533.72 billion as of end-2018.
Mr. del Rosario said 86% of Pag-IBIG’s net income or P28.23 billion will be given back to its members in the form of dividends. He said this was the highest dividend the fund has declared in its history.
Dividend rates were at 6.91% for regular Pag-IBIG savings program, while 7.41% for the Modified Pag-IBIG 2 (MP2) savings program, a special savings mechanism offered to members and retirees.
Acmad Rizaldy P. Moti, chief executive officer of Pag-IBIG Fund, said the higher collections from loans and operational efficiencies helped drive its net income to a new high.
Last year, home loan payments went up by 9% to P55.73 billion, also a record. Mr. Moti attributed this to the fund’s high performing loans ratio (PLR) recorded at 90.26%, which means nine of 10 borrowers are consistently paying their loans.
Cash loan payments also jumped 4% to P53.21 billion in 2018.
“Pag-IBIG Fund’s success story in 2018 is built on the trust and support of its members. Because of our members’ trust, they continuously avail of Pag-IBIG programs and ensure timely payment of their loans, which result in Pag-IBIG Fund’s strong and stable financial position,” Mr. Moti was quoted as saying.
Earlier this year, Pag-IBIG Fund reported its collections in members’ savings grew by 11% to P40.27 billion in 2018. This included P4.47 billion from the MP2 Savings Program. — V.M.P. Galang