Two years following its merger, state-run firm Philippine Guarantee Corp. (PHILGUARANTEE) spearheaded in its performance during the second year of the pandemic, with net income jumping by almost two-fold, the Department of Finance (DOF) reported.
PHILGUARANTEE is the result from the merger of two government firms Home Guarantee Corp. and Philippine Export Import Credit Agency (Philexim).
In a report to Finance Secretary Carlos G. Dominguez III released Monday, Feb. 28, PHILGUARANTEE said its profit increased 182 percent in January to December last year from P487 million in the previous year.
Alberto Pascual, PHILGUARANTEE President and chief executive officer said that based on initial financial reports, the nearly two-fold increase in the company’s net income due to improving cost-to-income outcomes from P1.16 billion in 2020 to P850 million in 2021.
Pascual said the PHILGUARANTEE’s income from loan guarantees amounted to P1.59 billion, slightly lower by two percent from P1.62 billion in 2020.
Meanwhile, PHILGUARANTEE’s non-guarantee income generated from investments and other income rose 176 percent to P2.32 billion in 2021 from P839.6 million year-over-year.
As of Dec. 31, the company’s outstanding guarantee portfolio registered P182.9 billion, which was 44 percent better than the P130.8 billion level in 2015, a year before the Duterte administration took office.
As a result of fulfilling its mandate towards the priority sectors, Pascual also reported that for 2021, the PHILGUARANTEE assisted more beneficiaries than in 2020, up by 6.5 percent, with a total of 202,269.
Pascual also said the firm’s assets grew six percent from P57.41 billion in 2020 to P60.88 billion last year, and its liabilities declined by nine percent from P37.83 billion to P34.32 billion in 2021.
The firm’s total equity increased by 36 percent, from P19.57 billion in 2020 to P26.56 billion last year.
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, Pascual said.
For 2022, Pascual explained that PHILGUARANTEE is projecting to grow its portfolio, backed by its commitment to support the small and medium enterprises, housing borrowers, agri-based workers and other priority sectors.
The corporation, he said is also enhancing its service delivery thrusts by implementing digital modernization programs in Debt Management and Financial Analysis, and Loan Guarantee Management.