THE Home Mutual Development Fund, commonly referred to as Pag-Ibig Fund, recorded several milestones in its 42 years of establishment.
Marilene C. Acosta, president and CEO of the Pag-Ibig (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund said that HMDF posted an annual net income of P44.5 in 2022, the highest in the organization’s history. Moreover, Acosta said Pag-Ibig Fund’s total assets grew to P82.24 billion, also the highest in its history.
“When Pag-Ibig performs well, it’s our members who benefit the most. Having achieved record-high numbers while maintaining a sound and sustainable fund, we are able to declare the highest dividend payout ratio of 97 percent and highest dividend amount worth P42.7 billion for our members’ savings,” Acosta said at the recently-concluded Pag-Ibig Fund Stakeholders’ Accomplishment Report in Manila last Friday.
Acosta also noted that Pag-Ibig continues to provide a 3-percent interest rate for its minimum wage earner members and a 5.75-percent interest rate for the housing loan program. She described these rates as “affordable.” Savings of members, according to Acosta, is also on the rise to P27 billion from January to April this year. She said one of the growth drivers is the sustained growth of mandatory monthly contribution of the regular members. For the first three months of the year, savings totalled P13.62 billion.
MP2 program
ACOSTA said the Modified Pag-Ibig II (Pag-Ibig MP2) savings program posted a hefty 54-percent growth to P39.8 billion in 2022 from P25.95 billion in 2021. This is the highest increase recorded so far in the program, the Pag-Ibig chief added.
The Pag-Ibig MP2 program is a special voluntary savings facility with a 5-year maturity, designed for active Pag-Ibig Fund members to save more—for a minimum of P500 per remittance—and earn higher dividends, in addition to their Pag-Ibig regular savings. Dividends are tax-free and can be withdrawn annually or after the 5-year maturity.
Acosta also emphasized that MP2 savings are government-guaranteed.
Aside from members, the MP2 is also open to former Pag-Ibig Fund members (pensioners and retirees) with other sources of monthly income, regardless of age, and with at least 24 monthly savings prior to retirement.
Natural Born Filipinos, who reacquired their Filipino Citizenship pursuant to Republic Act 9225 (Citizenship Retention and Reacquisition Act of 2003), with at least 24-monthly savings prior to permanent migration to another country, are also allowed to park funds in the MP2.
Acosta reported the agency also released P117.85 billion for home loans, Moreover, she said total membership savings totaled P79.90 billion and loan payments amounting to P 127.42 billion.
Savings, loans
Acosta said the national savings program was able to assist 105,212 members to secure new homes from Pag-Ibig’s housing loan programs and over 2.61 million aided through its short-term loans.
Loan repayments remain strong. In 2022, the Fund totalled P 127.42 billion in short term loans and housing loan payments, the biggest in our history. Acosta said the program’s performing loan ratio (PLR) continues to rise, pointing out that it was able to bring it back above 90 percent, the highest since the pandemic. “Based on the April 2023 data, PLR is now 92.17 percent,” she said.
“If we can reach 95 percent, I think we can relax,” the Pag-Ibig president said. She added that collection from loan payments this year so far totalled P44.91 billion, a 13-percent increase from the same 4-month period last year. Acosta said the program also granted P8.28-billion worth of loans for socialized housing that benefitted 18, 657 low income and minimum wage earners.
“We continue to [stick] to our goal in empowering the underserved,” she said. “We want to aim for new record-highs and highest new numbers because we understand behind these figures have transformed lives for the better.”
