The Home Development Mutual Fund (Pag-IBIG Fund) logged PHP34.73 billion net income despite the prevailing coronavirus disease (Covid-19) pandemic last year.
Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo del Rosario, who also heads the 10-member Pag-IBIG Fund Board of Trustees, said the 2021 net income is the highest ever recorded by the Fund for the past five years.
“As we close our books for 2021, I am happy to report that your Pag-IBIG Fund achieved another milestone. Our strong performance last year led us to reach a net income of PHP34.73 billion,” Del Rosario said as he virtually reported the 2021 accomplishment of the Pag-IBIG Fund on Thursday.
“This is our highest net income ever, surpassing by 9.5 percent our PHP31.71 billion net income in 2020 and topping the previous record of PHP34.37 billion netted in 2019,” he added.
Del Rosario also noted that the Fund has breached the PHP30 billion in five consecutive years since 2017.
“Our members will directly benefit because we shall again go beyond what is required of us by declaring over 86 percent of our net income as dividends for their savings,” he added.
The Pag-IBIG Fund charter requires the agency to declare at least 70 percent of its annual net income as dividends to be credited “proportionately” to its members’ savings.
The management, however, recommended setting aside 86.56 percent of its net income as dividends to maximize the benefit to its members during the second year of the pandemic.
Del Rosario said the recommendation is subject to the approval of the Board of Trustees.
Acmad Rizaldy Moti, Pag-IBIG Fund Chief Executive Officer, said the dividend rates on member’s savings – both mandatory and voluntary – will remain higher than other instruments available in the market.
“We know that many of our members have been asking about the dividend rates. Now we can finally share the news. For 2021, dividend rates will remain above 5 percent,” Moti said.
The recommended 2021 dividend rate of Pag-IBIG Regular Savings is 5.16 percent per annum and 5.66 percent per annum for the modified savings program (MP2).
“Considering the challenges caused by the pandemic, Pag-IBIG’s dividend rates are still much higher than other savings accounts and financial products in the market today,” Moti added.
The Pag-IBIG Fund has about 13.69 million active members to date.
Source: Philippines News Agency
