By Jelly F. Musico
MANILA, Feb. 26 (PNA) – The Home Development Fund or Pag-IBIG Fund has achieved its highest gross and net incomes in its 34-year history amounting to Php30.68 billion and Php16.22 billion, respectively.
Vice President Jejomar C. Binay announced this Thursday, that Pag-IBIG’s total assets have now reached Php376.09 billion which is 9.12 percent higher compared to last year.
Binay, chairman of the Pag-IBIG Fund Board of Trustees, announced these record-breaking financial accomplishments during Pag-IBIG Fund’s Midterm State of the Fund Address where he met with different Pag-IBIG Fund stakeholders.
“Pag-IBIG Fund continues to be bigger, offers better services and more benefits to its members through faster and more efficient operations, all without increasing its monthly contribution which remains at Php100 since the 1980s,” Binay said.
“The record-breaking achievements in 2014 reinforce Pag-IBIG’s solid and robust financial standing that resulted from the reforms and innovations that Pag-IBIG put into action in the past four years,” he added.
Binay also said Pag-IBIG’s housing loan takeout in 2014 set a new record at Php40.6 billion for 54,026 units which is up by 19% and 14% from Php33.96 billion for 47,562 units in 2013, respectively.
He added that the performing loans ratio (PLR) also went up to 87% in 2014, from 83% in 2013. This is the highest PLR attained by Pag-IBIG from a low 79% in 2008.
Outsourcing of collections for housing loans in arrears led to the conversion of 47% of non-performing loans, or 189,498 accounts, into active accounts or performing loans.
In 2014 alone, Pag-IBIG, through the collection agencies, was able to collect Php2.7 billion.
Binay said the enhanced processes in loan applications and membership registration, as well as the increased payment channels for amortizations and monthly savings led to more Filipino workers registering with Pag-IBIG.
According to Binay, Pag-IBIG membership grew by 6.6 million in the past four years, and total membership grew by 9% from 13.49 million in 2013 to 14.76 million in 2014. Voluntary members increased most by 27% from 75,933 in 2013 to 96,694 in 2014. The number of overseas Filipino workers rose next by 20% from 3,337,925 in 2013 to 3,999,663 in 2014.
Binay also said that the Pag-IBIG Board recently declared Php11.34 billion in dividends in 2014, at a dividend rate of 4.18 percent, much higher than the interest rate of 0.5% to 1% offered by banking institutions. (PNA)