Jun 192013

MANILA, Philippines – The Home Development Mutual Fund (Pag-IBIG Fund) is projecting its net income to grow 15 percent to P15 billion this year, from  P13 billion registered in 2012.

Likewise, Pag-IBIG president and chief executive officer Darlene Marie B. Berberabe said the state-run fund is looking to increase its membership base from the present 12.6 million to about 20 million this year.

An increase in the number of members has a direct bearing on its earnings stream as contributions would also grow. A member is mandated to make a contribution of at least P100 a month.

Berberabe said the principal target are the overseas Filipino workers (OFWs), three million of which are already members. Others include domestic helpers or kasambahays, the self-employed, and professionals.

So far, but the biggest contributors to Pag-IBIG’s earnings are housing and member loans.

Pag-IBIG has a housing loan portfolio worth over P21 billion. It also has P40 billion in investible funds other than the housing and cash loans.

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“We are in talks with fund managers for investments in the equity or stock market,” Berberabe said, adding they are also looking at the accreditation parameters for hiring a private fund manager.

Pag-IBIG is mandated to invest up to 70 percent of its portfolio in housing while the rest are for member loans.

It has declared a dividend package worth P9.3 billion, which goes to its members unlike other government financial institutions (GFIs) that must remit up to 50 percent of their annual net earnings.

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