State-run Government Service Insurance System’s (GSIS) financial performance posted a single-digit improvement in 2025, driven by a steady increase in its core earnings and a significant expansion in its asset base.

Based on the state pension fund’s latest unaudited condensed statement of comprehensive income seen by Manila Bulletin, net income before changes in policy reserves climbed to ₱137.9 billion last year, 3.6 percent higher than the restated ₱133.1 billion posted in 2024.

This single-digit growth reflects GSIS’ ability to generate a surplus from its operations prior to accounting for the long-term liabilities associated with future insurance and pension claims.

Last year, GSIS’ total income climbed 4.7 percent to ₱465.7 billion from over ₱445 billion in the previous year.

Service and business income, mainly from members’ contributions—which form the bulk, or more than two-thirds, of the fund’s total revenue—increased to ₱319.4 billion from ₱295.8 billion.

GSIS’ gains from its investments and assets during the period stood at ₱136.7 billion, although this declined from ₱142.6 billion in the previous year.

Other non-operating income also saw a significant jump, reaching ₱9.7 billion compared to ₱6.7 billion in 2024.

However, the increase in earnings came alongside a corresponding rise in expenses to sustain operations.

Total expenses grew by more than five percent to ₱327.8 billion in 2025 from ₱311.9 billion in 2024. This was mainly driven by higher claims and benefits for members and pensioners, which reached ₱194.3 billion compared to ₱179.6 billion the year prior.

Maintenance and other operating expenses (MOOE) also saw a slight uptick to ₱4.2 billion, while personnel services (PS) costs remained relatively stable at nearly ₱7 billion.

Non-cash expenses inched up to ₱122.3 billion from ₱121.9 billion. These generally account for the declining value of the pension fund’s property, equipment, and other long-term assets over time.

Beyond earnings, GSIS’ total assets also increased to ₱1.96 trillion in 2025, up 8.3 percent from ₱1.81 trillion in 2024, its latest unaudited condensed statement of financial position showed.

This was supported by strong growth in GSIS’ financial assets. Current financial assets rose to ₱419.8 billion from ₱369 billion, while non-current financial assets increased to ₱791.7 billion from ₱708.1 billion in the previous year.

Further, GSIS’ investment property portfolio saw its value climb to over ₱202 billion in 2025, compared to ₱193.9 billion a year ago.

In February, GSIS rolled out a microloan program for state employees, dubbed Ginhawa Go, allowing qualified members to borrow between ₱1,000 and ₱50,000. This loan program is expected to help support the pension fund’s performance in 2026.

GSIS President and General Manager Jose Arnulfo “Wick” Veloso earlier said the product aims to reduce reliance on informal, predatory lending.