MANILA, Philippines—The Pag-IBIG Fund announced Wednesday it was giving out P7.88 billion in dividends for 2010, representing 71 percent of its net income for last year.
In a statement sent out from the office of Vice President Jejomar C. Binay, the Pag-IBIG chairman said the dividends would benefit some 9 million members.
By law, the Pag-IBIG board is required to set aside at least 70 percent of the provident fund’s yearly net income to be paid in the form of dividends to members.
Dividends, which are tax-free, are proportionately credited to members’ total accumulated value or savings with Pag-IBIG.
Binay, who is also chairman of the Housing and Urban Development Coordinating Council (HUDCC), said the payout was declared following adjustments made due to the adoption of policies based on new accounting standards.
“This is also in compliance with capital adequacy policies so that the fund’s capital covers its major risk exposures and ensures its sustainability,” he added.
Binay said that in a meeting held last November, the Pag-IBIG board approved the agency’s risk governance structure and the reconstitution of the board oversight committees to include a board risk and capital committee.
Pag-IBIG chief executive Darlene Marie B. Berberabe said the fund has remained “one of the most profitable financial institution in the country today, whether government or private.”
Berberabe said Pag-IBIG closed the year 2010 with gross revenues amounting to P22.4 billion and P278 billion in assets, increasing by 11.16 percent from its P250 billion in 2009.
“Pag-IBIG Fund’s performance last year has further solidified its status as one of the country’s premier GOCC or GFI, fully deserving its ‘A’ classification,” she said.
Berberabe was referring to a recent Malacañang issuance that called for a classification of government-owned and -controlled corporations and government financial institutions on the basis of assets and revenues.
GOCCs with more than P100 billion in assets and more than P10 billion in annual revenues receive the highest classification of A. Those with less than P1 billion in assets and less than P100 million in revenues receive the lowest classification of E.