Pag-IBIG Fund net income rises to ₱8.96B in Q1

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Metro Manila (CNN Philippines) — The government home lending agency has reported a higher net income for the first quarter amid higher loan demands and improved collections.

In a statement Friday, the Home Development Mutual Fund or Pag-IBIG Fund said its net income surged to ₱8.96 billion -- up by 10.5 percent in January to March.

“Because Pag-IBIG Fund stands as one of the most profitable government corporations, we remain in a strong position to provide social services to more Filipino workers. This is in line with President Rodrigo Roa Duterte’s directive of providing social benefits to Filipinos, especially the low-wage earners,” said Secretary Eduardo del Rosario, who heads both the Housing and Urban Development Coordinating Council and the Pag-IBIG Fund Board of Trustees.

Demand for the fund’s loan programs spiked during the first three months

The amount of home loans rose 22 percent year-on-year to ₱17.21 billion as the number of borrowers increased to 19,696.

Short-term loans (STL) or cash loan releases also surged by 8 percent to ₱12.05 billion, with the number of borrowers spiking to 593,269. This is 12 percent higher compared to the same quarter last year.

Collections amounted to ₱40.24 billion, marking an overall increase of 13 percent year-on-year.

Collected members’ monthly savings also jumped by 16 percent to ₱11.15 billion.

Payments for home loans amounted to ₱15.25 billion, while STL payments totaled ₱13.67 billion-- up 15 percent and 8 percent, respectively.

“While the first three months of the year are usually slow for most companies, we have once again bucked the trend as we continue to achieve double digit growth. The demand for our home loan and cash loan programs exceeded our projections by a considerable margin and marked increases from the same period last year,” said Acmad Rizaldy Moti, Pag-IBIG Fund chief executive officer.