Pag-IBIG Fund said that it will defer the monthly contribution increase.
PAG-IBIG FUND — On Thursday, the state-run Home Development Mutual Fund said that it will defer the monthly contribution increase which was supposed to start this 2022.
The monthly contribution increase was originally planned for 2021 but was moved to 2022 because of the coronavirus pandemic.
But as the COVID-19 pandemic persists and because of the good fiscal standing of the mutual fund, Pag-IBIG Chairman Sec. Eduardo del Rosario said that they will again postpone the monthly contribution increase.
Del Rosario said that they will continue to defer the increase of the monthly contribution of their members, adding that this is the 36th year that the monthly contribution will be the same.
He, who also is the Secretary of the Department of Human Settlements and Urban Development (DHSUD), said that Pag-IBIG has achieved many “highest-ever” records for 2021 despite the coronavirus pandemic.
“I am happy to report that your Pag-IBIG Fund achieved another milestone. Our strong performance last year led us to reach a net income of P34.73 billion!” Del Rosario said. “This is our highest net income ever, surpassing by 9.5 percent our P31.71 billion net income in 2020 and topping the previous record of P34.37 billion netted in 2019.“
Del Rosario also said that housing loan takeouts for 2021 reached PHP 97.28 billion — the highest in the agency’s history.
According to Del Rosario, the total housing loan takeout would breach the PHP 100 billion mark for the first time if Pag-IBIG added the loans on the reconstruction of houses and others. This means more than 94,000 Pag-IBIG members have a new home in 2021.
Del Rosario added that short-term loans also increased in 2021 to PHP 44.3 billion or more than 2 million members benefitting from the loan. The number includes PHP 43 billion for multi-purpose loans and more than PHP 1 billion for calamity loans last year.
READ ALSO: Pag-IBIG Home Loan Releases Surpass P100 Billion Amidst Pandemic
Because of Pag-IBIG’s performance, Del Rosario announced that recommended dividend rate of Pag-IBIG Regular Savings for 2021 is 5.16% per year, while for MP2 Savings is 5.66%, subject to board approval.
In contrast, Del Rosario said that the dividend yield for publicly listed companies only averages 2.58%
Also, the dividend payout ratio has been increased to 86.56% of annual net income, equivalent to PHP 29.86 billion. Under Pag-IBIG Fund’s charter, dividends would be at least 70% of net income.
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