Sunday, May 20, 2018
  • share this

GSIS revenue drops due to rise in spending

/ 11:18 PM February 01, 2013

The Government Service Insurance System’s net revenue eased by 2 percent year-on-year to P59.9 billion in 2012, mainly due to a surge in payout to members.

Robert Vergara, GSIS president and general manager, said in a briefing that the state fund settled P63 billion worth of members’ claims and benefits last year, an increase of 22 percent.

Including operational expenses, total spending reached P70 billion—19 percent higher than that of 2011.


Growth in expenses was almost three times as fast as the expansion in gross revenue, which rose 8 percent to P130 billion.

But Vergara downplayed the rise in spending, saying it that it would be better to look at data where profits from the GSIS’ equity investments were taken into account.

He said the pension funds’ comprehensive income actually jumped 21 percent to P87 billion.

By end 2012, the GSIS has P104 billion spread in various stocks listed in the local exchange.

The GSIS chief said that, considering the low interest rates on fixed-income securities, the pension fund is inclined to further raise its equity portfolio to a ratio of 18 percent or even 19 percent of investible funds, which stands at P685 billion.

The move would bring the ratio closer to the 20-percent cap on equity exposure that the management set for GSIS.

Also, Vergara is optimistic about the Philippine Stock Exchange’s performance, saying that the PSE index can reach 7,000 points this year, and may even see a multi-year bull run.

Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, expenditures, GSIS, revenue
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2018 | All Rights Reserved