By Chino S. Leyco
State-run Home Development Mutual Fund (HDMF) ended last year with stronger profit following “record-breaking accomplishments” owing to higher members’ contributions.
At yesterday’s chairman report ceremonies, HDMF, commonly known as Pag-IBIG Fund, said that its net income reached P31.23 billion last year, higher by three percent compared with P30.27 billion in the previous year.
“Pag-IBIG Fund’s performance in 2018 stands out as the best so far,” Eduardo D. del Rosario, the fund’s chairman, who also heads the Housing and Urban Development Coordinating Council (HUDCC).”
“Pag-IBIG Fund performed better this year than in 2017, which was our best year ever,” Acmad Rizaldy R. Moti, the fund’s chief executive officer said.
“And because of the strong performance and robust financial staining of the Fund, we are very confident that the rates of our loans will remain low and we don’t foresee an increase in housing interest rates in the next few years,” he added.
According to the government’s housing arm, its members’ savings collection last year was the “highest ever” at P40.27 billion, up by 11 percent year-on-year, while the modified Pag-IBIG 2 Savings Program amounted to P4.27 billion, which is also higher than the previous year’s by 242 percent.
In 2018, Pag-IBIG’s home loan takeout grew by 16 percent to P75.31 billion, while home loan borrowers increased by 12 percent to 90,375 and home loan payments collections jumped by nine percent to P55.73 billion.
Meanwhile, the multi-purpose loan borrowers of Pag-IBIG increased by 11 percent last year to 2.27 million, with releases totalled P46.96 billion and short-term payment collections amounted to P53.21 billion.
“When we achieve record breaking disbursements in home loans and cash loans, we are happy because these signify our members’ satisfaction with Pag-IBIG Fund’s programs as we help more members with their housing and financial needs,” de Rosario said.
Along with stronger profit, Pag-IBIG also reported that it managed to maintain a high performing loan ratio of 90.26 percent, indicating that nine out of 10 housing borrowers religiously paid their loan obligations with the fund.
Among the housing lenders in the country, Pag-IBIG still offers the lowest rates for socialized and regular housing at three percent and 5.375 percent per annum, respectively.
Del Rosario added that Pag-IBIG also showed better than expected in terms assets after it breached the P500-billion mark. At end-May 2018, Pag-IBIG’s total assets stood at P533.72 billion with strong active members of 14 million.