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THE Pag-IBIG Fund, the biggest financier of the government's housing program, posted a net income of P2.25 billion for the first quarter of the year, up by 16 percent compared to the same period last year. Solid revenues which amounted to P3.95 billion sustained the profitability of the Fund allowing it to remain as one of the leading financial institutions in the country. These revenues were derived from housing - P2.03 billion, investments - P1.12 billion, and multi-purpose loans - P0.80 billion.

Vice President Kabayan Noli De Castro, who sits as chairman of the Board of Trustees, said that the stable financial performance of the Pag-IBIG Fund was achieved despite the austerity measures it adopted. “The Fund’s performance is convincing proof that efficiency and excellent service can co-exist. Pag-IBIG is tops not only in income and service delivery but also in efficiency and cost-saving,” De Castro said.

Total assets as of March 2006 expanded to P182.46 billion, representing a 2.33 percent increase over the 2005 year-end level of P178.30 billion. The expansion in the total resources of the Fund was primarily driven by members’ equity which reached P126.74 billion and housing-related assets which amounted to P103.73 billion. The Fund’s total resources are projected to reach almost P200 billion by end of the year.

Pag-IBIG Fund President and Chief Executive Officer Atty. Romero Quimbo pointed out, “the sustained growth in the Fund’s performance is a result of synchronized institution-wide reforms we implemented, such as a strengthened IT infrastructure and an aggressive collection and marketing drive anchored on the Tapat sa Pag-IBIG campaign. The campaign emphasizes the conscientious payment of members of their loan obligations to ensure the continuous flow of funds.

The collection efforts implemented by the Fund have in fact paid off. Collections from January to March 2006 stood at P10.41 billion, up by 17.63 percent in the same period last year and the highest quarterly figure posted to date. Total collections covered members’ contributions which accounted for P3.41 billion and multipurpose and housing-related loans which accounted for P3.29 billion and P3.71 billion, respectively. “We expect our collection performance to continue improving because of our recent tie-ups with several public and private banks for the use of their electronic payment windows,” Quimbo said.

Higher collection level means increased benefits to its more than six million members across the country. Total benefits released for members reached P1.09 billion, an increase by P424.16 million, or 63.23% higher than total releases for benefits in the first quarter of 2005.

As the single biggest provider of housing loans in the country and main financier of the public sector housing industry, the Fund continues to play a vital role in pump-priming the economy. For the first three months of 2006, the total contribution to the economy of the corporation reached P24.80 billion, increasing by P1.89 billion or 8.25 percent higher from the previous level. The Fund also remitted P642.82 million to the government coffers. Over P3.59 billion in housing loans were granted to individual housing loan borrowers during the first quarter. (end)