The country’s shelter financing agency Pag-IBIG earned P20.48 billion in the first half of 2022, sustaining a 27-percent growth from the same period last year, Manila Bulletin reported. The total gross income was P32.19 billion, which increased by 19 percent in the mentioned period. Earnings from the housing and short-term loans and trading gains contributed to the positive growth figures.
Ultimately, Pag-IBIG’s positive growth figures will benefit members, according to the agency’s Chief Executive Officer, Acmad Rizaldy Moti. By law, the agency must return 70 percent of its annual net income to members in the form of dividends, which are credited to savings.
The top executive added that he’s confident about Pag-IBIG’s financial standing for 2022. He believes that they will reach at least P30 billion in annual net income level for the sixth consecutive year, as he anticipates a high turnout on loan releases and collections for the second half of the year.
Meanwhile, newly sworn-in housing secretary Jose Acuzar said that Pag-IBIG’s strong performance puts them in a favorable position to continue providing social services and help more Filipinos gain better lives.
Membership Savings Collections
Similarly, Pag-IBIG saw record-highs in both membership savings collections and home loan releases during the first half of the year.
The savings from members reached P38.82 billion, an increase of P7.23 billion or 23 percent compared to the P31.59 billion collected from January to June last year. This is a remarkable feat for the agency, as it is the highest amount saved by members for any first half of the year period.
The growth in savings collection was primarily propelled by the agency’s popular savings program MP2. The program collected a record-high P19.40 billion from January to June, a 47 percent surge from the P13.23 billion collected during the same period last year.
For Moti, the members’ trust in putting their money in Pag-IBIG Fund and the support of the business community in the form of proper and on-time remittance of employee savings led to record-high collections.
He added that the agency’s healthy financial standing can help support the growing demand for loans and retain low interest rates.
Home Loan Releases
In terms of home loan releases, Pag-IBIG disbursed P51.96 billion, funding the purchase of 47,184 homes.
Of the number, P3.67 billion were used to fund the acquisition of 8,471 socialized houses in the same period, Philstar reported. Socialized home loans had a 19 percent share in the total number of housing units funded. In terms of value, it accounted for seven percent of the P51.96 billion loan.
The Affordable Housing Program (AHP) is a special home financing program that aims to accommodate minimum-wage and low-income Pag-IBIG members. These include members who earn P15,000 a month in Metro Manila and P12,000 outside the capital region.
The program carries a subsidized interest rate of three percent per annum for housing loans of up to P580,000 for socialized subdivision projects. Borrowers can pay as low as P2,445.30 for a socialized home loan.
Affordable Housing Backlog Solutions
The housing department renewed its commitment to addressing the housing crisis under the leadership of its new chief Acuzar. The top executive promised that together with key shelter agencies, they will solve the issue in less than six years.
As of 2020, the housing backlog in the Philippines was estimated at 8.4 million households, or 34 percent of the 24.7 million households in 2018, Business World mentioned in this report. About 3.3 million low-income households cannot afford housing, which represents 47 percent of the total household in the country in 2018.
Affordable housing solutions are a key topic in the upcoming The Outlook 2022: Philippine Real Estate Conference. Top executives from different real estate companies will share their efforts in building safe and decent homes offered in strategic locations and at an accessible price.
One of the keynote addresses at the conference will likewise put a spotlight on housing backlog solutions. Gino Olivares, the President of the Organization of Socialized and Economic Housing Developers of the Philippines, Inc. (OSHDP), is expected to deliver the address and discuss how stakeholders can stimulate the affordable housing industry.
To buy conference tickets and know more about the in-person event, visit this page.
Photo via DepositPhotos
Sources: Manila Bulletin, Pag-IBIG, Philstar, Business World