THE Home Development Mutual Fund (Pag-Ibig Fund) suffered a double-digit drop in its net income for the first quarter of the year compared to the same period in 2019.
Pag-Ibig Fund saw a 10.4-percent plunge in its net income as of end-March this year to P8.029 billion from P8.96 billion a year ago, based on its statements of comprehensive income.
Meanwhile, its gross income for the three-month period also dipped by 1.73 percent to P12.47 billion from P12.69 billion in 2019.
The BusinessMirror tried to reach Pag-Ibig Fund Chief Executive Officer Acmad Rizaldy P. Moti for an explanation on the drop of its net and gross income, but he has yet to respond as of press time.
In 2019, Pag-Ibig Fund achieved its highest-ever net income of P34.38 billion, up by 3.5 percent from P33.17 billion in 2018.
The agency also booked a higher gross income at P56.896 billion last year, a 7.7-percent increase from P52.82 billion in 2018.
Last month, Moti said in an interview with the BusinessMirror that it is still expecting a “decent” net income even in the worst-case scenario of a 75-percent drop on their performing loans ratio due to the impact of the Covid-19 pandemic, citing their latest stress tests.
According to Moti, Pag-Ibig Fund exceeded its P15.75-billion target for housing loan releases for the first quarter as it posted P15.77 billion during the period.
However, he earlier said they expect a 20-percent drop in housing loan takeouts this year due to the impact of the lockdown. With the expected plunge in housing loans to P76.32 billion, this would be below their 2020 revised target of P95.4 billion.
In 2019, housing loan releases also reached a record P86.7 billion, a 15-percent surge from P75.3 billion in 2018.
In terms of short-term loan availments, Pag-Ibig also failed to hit its P12.88 billion target as of end-March as it recorded only P11.61 billion in actual availments during the period.
Nonetheless, he expressed optimism that they are going to hit their P56.2-billion target for short-term loans.
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