The Home Development Mutual Fund or more popularly known as Pag-IBIG Fund grew its net income by over a fifth to P28.4 billion in the first half of 2024, on the back of higher collections coupled with lower expenses.
To recall, Pag-IBIG Fund last February hiked members' monthly contribution rate to two percent from one percent, doubling the total amount jointly contributed by employees and employers to P400.
Membership in the state-run Pag-IBIG Fund is mandatory among Filipino workers, both in the public and private sectors.
As such, Pag-IBIG Fund’s end-June net income rose 21.4 percent from P23.4 billion a year ago, its latest statement of comprehensive income showed.
First-half total income reached P39.8 billion, up 8.2 percent from P36.8 billion in the first six months of 2023.
Service and business income, which includes contributions, increased 13.4 percent year-on-year to P34.6 billion from January to June.
However, six-month investment gains declined 14.3 percent year-on-year to P4.2 billion, while other non-operating income fell 38.2 percent to P876.7 million.
Total expenses—including personnel services, financial, non-cash as well as maintenance and other operating expenses—dropped 15 percent to P11.3 billion as of June from P13.3 billion a year ago.
Last February, President Marcos lauded Pag-IBIG Fund for its record-high 2023 net income amounting to P49.8 billion pesos, 11.9-percent bigger than the P44.5 billion in 2022.
Its end-2023 total assets also hit a record P925.6 billion, up from P827.4 billion in 2022.
As of end-June 2024, Pag-IBIG Fund’s assets further climbed to a new high of P985.9 billion, its latest statement of financial position showed.
Pag-IBIG Fund provides home financing as well as investment and savings programs to its members.