Pag-IBIG posts record-high P34.73 billion net income in 2021

Home Development Mutual Fund or Pag-IBIG Fund said Thursday it posted its highest-ever net income last year, even surpassing its pre-pandemic bottom line figures.

“Our strong performance last year led us to reach a net income of P34.73 billion. This is our highest net income ever, surpassing by 9.5% our P31.71 billion net income in 2020 and topping the previous record of P34.37 billion netted in 2019,” Secretary Eduardo del Rosario, who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees, said in a statement.

“I’d also like to note that this is the fifth time that our net income breached the P30-billion mark. Our members will directly benefit because we shall again go beyond what is required of us by declaring over 86% of our net income as dividends for their savings,” he added.

Under the Pag-IBIG Fund charter, the agency is required to declare at least 70% of its annual net income as dividends, which shall be credited proportionately to its members’ savings.

However, the Housing chief said Pag-IBIG Fund’s management has recommended to set aside 86.56% of its net income as dividends to maximize the benefit to its members during the second year of the pandemic.

“This is now up for approval of the Board,” del Rosario added.

For his part, Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti said that 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%,” Moti said.

“Returns for the Pag-IBIG Regular Savings is recommended to be at 5.16% per annum, and the Modified Pag-IBIG 2 Savings to be at 5.66% per annum. 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,” the Pag-IBIG Fund chief said.—LDF, GMA News