Pag-IBIG Fund Eyes Single-Digit Bad Loans In 12 Months

Pag-IBIG Fund eyes single-digit bad loans in 12 months.

PAG-IBIG FUND — The Home Development Mutual Fund is banking on the Philippines’ economic recovery in bringing down its bad loans to single-digit within 12 months.

Pag-IBIG Fund

Pag-IBIG Fund chief executive officer Acmad Rizaldy P. Moti said that the company’s NPL (non-performing loan) ratio shot up to 19% at the height of the coronavirus pandemic from a single-digit of 8% to 9% percent in 2019.

Moti attributed the more than double rise in Pag-IBIG’s NPL to the massive job shedding amidst the pandemic-induced recession, which affected member borrowers’ ability to pay off their debts.

However, with the gradual reopening of the economy, Moti has expressed confidence that the NPL ratio would soon return to a single-digit level within 1 year and to its pre-pandemic level within 2 years.

READ ALSO: Pag-IBIG Fund To Defer Monthly Contribution Increase As Fund Posts Strong Performance

According to Moti, the recent ruling of the Inter-Agency Task Force (IATF) allowing foreigners to visit the country would provide the must-needed boost to the tourism sector.

That will jumpstart fast recovery of our tourism industry, of our hotels, among other things, and that would mean that a lot of jobs would be available again, and many more of our members would be able to work again full time,” Moti said.

Moti also said that the fast development of COVID-19 vaccines and the high vaccination rates, especially in key cities in the Philippines, would create additional jobs and would usher in more economic activity.

Pag-IBIG Fund
Photo source: Philstar

On Thursday, Pag-IBIG Fund Chairperson Eduardo D. del Rosario said that the company’s net income increased 9.5% to PHP 34.73 billion in January to December 2021 from PHP 31.71 billion in the previous year.

Del Rosario noted that the last year’s profit was above their pre-pandemic level of PHP 34.37 billion in 2019.

This is an impressive accomplishment, considering the continuing challenges and difficulties posed by the global pandemic in year 2021,” Del Rosario said. “This also marked the fifth consecutive year that we have surpassed the P30 billion net income mark.

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