State-run Home Development Mutual Fund, commonly known as Pag-IBIG Fund, is banking on the country’s economic recovery in bringing down its soured loans to single-digit within one year.

Acmad Rizaldy P. Moti, Pag-IBIG Fund chief executive officer, said the company’s non-performing loan (NPL) ratio shot up to 19 percent at the height of the pandemic from a single-digit of eight percent to nine percent in 2019.

Moti attributed the more than double rise in Pag-IBIG Fund’s NPL to the massive job shedding amid the pandemic-induced recession, which affected member borrowers’ ability to pay off their debts.

But with the gradual reopening of the economy, Moti has expressed confidence that NPL ratio would soon return to a single-digit level within 12-months and to its pre-pandemic level within two-years.

He said the recent ruling of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases allowing foreigners to visit the Philippines would provide the must needed boost to the tourism sector.

“That will jumpstart fast recovery of our tourism industry, of our hotels, among other things, and that would mean that a lot of jobs would be available again, and many more of our members would be able to work again full time,” Moti said.

The Pag-IBIG Fund official added that the fast development of various COVID-19 vaccines, and the high vaccination rates, especially in key cities in the country, would usher in more economic activity and create additional jobs.

“Based on what the numbers that we've seen that the economy has started to pickup. Our members have prioritized the payment of their loan obligations because even last year, 2021, our home lending operations recorded higher than target collections,” Moti said.

“So single digit would probably happen in 12 months, while around eight percent to nine percent would probably happen in 12 to 24 months,” he added.

On Thursday, Eduardo D. del Rosario, Pag-IBIG Fund chairperson said the company’s net income increased 9.5 percent to P34.73 billion in January to December 2021 from P31.71 billion in the previous year.

Del Rosario noted that last year’s profit was above their pre-pandemic level of P34.37 billion in 2019.

“This is an impressive accomplishment, considering the continuing challenges and difficulties posed by the global pandemic in year 2021,” Del Rosario said.

“This also marked the fifth consecutive year that we have surpassed the P30 billion net income mark,” he added.

In 2021, gross income reached P52.65 billion, up 17 percent from P44.95 billion in 2020.

Despite challenges, Pag-IBIG Fund’s active membership improved 7.2 percent last year to 13.69 million members from 12.77 million.

Along with that, membership savings rose by 32 percent from P48.19 billion to P63.67 billion last year, the highest on record.