State-backed housing lender Home Development Mutual Fund (Pag-IBIG Fund) reported that its investment income surged nearly 50 percent to ₱9.43 billion last year, a performance officials say will bolster dividend returns and support the government’s aggressive housing targets.

In a statement, Pag-IIBIG said that its total assets reached ₱1.23 trillion by the end of 2025, while the gross investment portfolio climbed to ₱190.13 billion. That represents a 41 percent increase, or ₱55.27 billion, from the previous year.

The agency’s portfolio remains heavily weighted toward government securities, with additional allocations in time deposits, corporate bonds, and preferred shares.

Jose Ramon P. Aliling, secretary of the Department of Human Settlements and Urban Development and chairman of the Pag-IBIG Fund board, attributed the growth to prudent financial management and a mandate to support the “Pambansang Pabahay para sa Pilipino” (4PH) program.

The program is a flagship initiative of President Ferdinand Marcos Jr. aimed at addressing the country's housing backlog through affordable financing. Aliling said the fund's stability ensures its long-term ability to provide competitive returns to members while maintaining low-interest credit lines for home buyers.

The agency’s asset mix remains dominated by its core mission, with housing-related assets totaling ₱922.07 billion as of year-end. Short-term loans accounted for ₱96.41 billion, while income-generating investments and other assets, including cash and property, made up the remainder of the ₱1.23 trillion total.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the fund operates under a rigorous governance framework to mitigate risk. She noted that all investment decisions are subject to board-granted authorities and internal protocols designed to protect the capital of Filipino workers.

According to Acosta, the increased investment income directly facilitates the agency’s ability to offer short-term and housing loans nationwide without compromising the safety of members' savings.

The financial results come just ahead of the fund's annual dividend announcement. Under its charter, Pag-IBIG Fund is required to return at least 70 percent of its annual net income to members.

In 2025, the fund declared dividend rates of 6.6 percent for its regular savings program and 7.1 percent for the Modified Pag-IBIG 2 (MP2) vehicle, the highest levels recorded since the pandemic.

The agency is scheduled to announce the dividend rates for 2025 on Friday, Feb. 27.