GSIS net profit dropped 65% in 2015

The profit of state-run pension fund Government Service Insurance System (GSIS) dropped by almost two-thirds last year to P48.9 billion as it posted a loss from financial assets.

In a forum Tuesday, GSIS President and General Manager Robert G. Vergara said net income declined in 2015 as the performance of the bond and equity markets were “bad” while the pension fund was also unable to dispose of any property that year.

An unaudited financial statement of the GSIS for 2015 showed a 65-percent drop in net income from P140.2 billion in 2014.

In 2015, the GSIS recorded a P2.5-billion loss from financial assets, reversing the P124.5-billion income posted the previous year.

Vergara earlier disclosed that GSIS failed to bid out the former Jai-Alai property in Manila last year. It was also unable to sell its controlling stake in thrift banking arm GSIS Family Bank despite a number of attempts in 2015.

Vergara said the strong 2014 performance was “a tough act to follow,” noting the buoyant markets that year.

The GSIS was nonetheless optimistic that assets will exceed the P1-trillion mark this year, Vergara said.

“Despite the dreadful start of the year and with the stock market bouncing back, I think we are on track for that milestone of joining some of the financial institutions with over a trillion pesos of assets, hopefully by the middle of this year,” the GSIS chief said.

Data showed GSIS assets reached P960.1 billion as of end-2015, up from P907.1 billion at end-2014.