GSIS net income up 18% to P54.8 billion in 2016
The profit of state-run pension fund Government Service Insurance System (GSIS) jumped 18 percent to P54.8 billion last year as investments reverted to an income partly due to minimized losses from the stock market.
The latest audited financial statement of GSIS showed that its 2016 net income improved from P46.4 billion in 2015.
Last year’s income rose to P154.9 billion from 2015’s P139.6 billion.
Income from insurance grew to P97.7 billion from P89.9 billion in 2015 while income from loans inched up to P22.5 billion from P22.3 billion.
Earnings from financial assets recovered to P30.2 billion, reversing the P2.4-billion loss in 2015.
“For the year ended Dec. 31, 2016, the GSIS reported income from financial assets of P30.2 billion, despite incurring net losses on valuation of P2.6 billion. Stock markets around the world recorded a dramatic decline. The Philippine Stock Exchange index lost 111.44 points or 1.6 percent during the year,” the GSIS noted.
“The significant decrease in losses on valuation from P33.9 billion in 2015 to P2.6 billion in 2016 was a result of the rise in market value from January to December 2016. Yield movements for Philippine local currency government bond yields were mixed. Yields mostly rose for bonds with maturities of between three years and 25 years, excluding the four-year and 10-year tenors,” it added.
