The Philippines’ state-run Home Development Mutual Fund reported a first-quarter net income of 14.76 billion pesos (US$260 million), 11.4% higher than in the same period of 2023 thanks to a doubling of its membership contribution rate as well as lower expenses.
Total income rose 7.7% year-on-year to 18.87 billion pesos, according to the fund’s financial results posted on its website.
As of end-March, assets of the fund reached a new record high 952.91 billion pesos, erasing the previous all-time high of 925.61 billion pesos set just three months earlier.
Known locally as Pag-IBIG Fund, the fund provides home financing as well as savings and investment plans for members. Membership is mandatory for public and private sector employees and employers.
This February, the fund increased the contribution rate from 1% to 2%. As a result, total monthly contributions form employees and employers doubled from 200 pesos to 400 pesos.
Its investment gains declined 11.5% to around 2 billion pesos in the first quarter, while service and business income increased 10.4% to 16.64 billion pesos.
Total expenses dropped 3.3% to 4.12 billion pesos.
Last year, Pag-IBIG Fund posted a record high net income of 49.79 billion pesos, a performance that drew praise from Philippine President Ferdinand Marcos Jr.
