Pag-IBIG reports record P16-B net income, P346-B assets in 2013 | | Philippine News
Home  » Business » Business News » Pag-IBIG reports record P16-B net income, P346-B assets in 2013

Pag-IBIG reports record P16-B net income, P346-B assets in 2013

The Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund, reported yesterday a record net income of P16.25 billion in 2013 while total assets climbed to P345.7 billion or 9 percent higher than 2012, making it one of the most profitable government corporations and the country’s biggest shelter provider.

Vice President Jejomar C. Binay, who is also Pag-IBIG Chairman, presented the state of the  provident fund’s finances at yesterday’s first ever Pag-IBIG Mid-Term Report (2010-2013) at SMX Convention Center in Pasay City.

“Pag-IBIG Fund has grown more financially stable and responsive to the needs of its members in the last three years being the biggest key shelter agency in the country even without increasing our membership contribution of P100,” Binay said.

Photo of row houses from

Photo of row houses from

Binay said Pag-Ibig will not increase its mandatory P100 monthly contribution which dates back to the 1980s. Instead, the Fund will focus on generating new members.

On an annual basis, the provident fund’s net income in 2013 went up to P16.25 billion from P12.10 billion in 2012 and  P8.39 billion in 2008.

According to Binay, Pag-IBIG also credited P9.28 billion in dividends to member’s savings in 2012.

“With the help of our stakeholders and partners, Pag-IBIG Fund is now one of the most profitable government corporations and the biggest key shelter agency in the country,” said Binay, who also heads the Housing and Urban Development Coordinating Council.

In terms of membership, Pag-IBIG has grown its base to 13.5 million total or more than double the 5.338 million when the new board under Aquino administration took over in July 2010.

Total membership savings also reached P23.95 billion in 41 months from only P1.958 billion in July 2010. Voluntary savings, contributions on top of a member’s mandatory P100 a month contribution, also reached P2.34 billion last year.

The agency also boasts of providing affordable housing loans at an interest rate of 4.5 percent while doubling the maximum allowable individual loan to P6 million from P3 million. Interest on calamity loan was reduced by half to 5.95 percent from 10.75 percent.

Binay further reported that the fund was able to maintain a high performing loan ratio for the past three years, averaging 87.66 percent.

The accomplishment is credited to the enhanced collection mechanisms introduced by Pag-IBIG last year, including the outsourcing of payment collections for delinquent accounts.  As a result, Pag-IBIG has collected a total of P3.356 billion in 2013 in housing loan payments from accounts that were previously non-performing.

Pag-IBIG has also expanded its service channels opening more branches in key locations in 2013 to make its services more accessible to its members. Total Pag-IBIG offices ballooned to 62 from only 38 in 2012 and opened 14 service desks in different shopping malls nationwide. Some town halls also house Pag-IBIG Fund desks.

It has also forged collection agreements with leading banks and payment centers so that members can pay their savings and amortizations wherever convenient to them.

“These increased benefits and improved services have been provided to members without imposing any increase in their monthly membership savings. Our efforts have also been recognized by national and international institutions, affirming the hardwork and dedication we put in our day-to-day operations,” said Atty. Darlene Marie B. Berberabe, Pag-IBIG president and CEO.

In 2010, Berberabe said that when the new board and management assumed office, there was already a board-approved resolution to increase the monthly contribution, since the P100 contribution rate has been the rate since the 1980s.

However, Binay engaged the Board in a discussion on the timeliness and propriety of the strategy to increase the Fund at that time. He then proposed to increase the membership base first in order to increase the contributions; to improve collection platform to make sure the agency does not only disburse funds to lend to members, but equally important, also collect the loan amortizations, so that the Fund can be sustained; and lastly, to improve benefits and services so that members will choose to continue to contribute, or to save, with the Fund.