Pag-IBIG Fund's Nine-Month Net Profit Rises 23.51% to P63.23 Billion
Key Takeaways
- •Pag-IBIG Fund's net profit climbed 23.51% to P63.226 billion for the first nine months, driven by seasonal factors.
- •By end-September, the fund had released P111.29 billion in housing loans and P88.64 billion in short-term loans, while aiming for more than P165 billion and around P120 billion respectively for the full year.
- •The fund's assets reached P1.338 trillion at the end of August, and it projects strong earnings from housing loan takeouts, short-term loans, and acquired assets.
- •The voluntary MP2 five-year savings program delivered a 7.12% return in 2025, exceeding the 6.62% dividend rate for regular savings, with MP2 savings growing as more Filipinos defer large purchases.
- •Officials expect the fund to meet its full-year targets even though short-term loan takeouts are anticipated to slow in November and December.
MANILA — The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, the Philippine government's savings and housing finance institution for workers, reported a 23.51% increase in net profit to P63.226 billion for the first nine months, attributing the gain to seasonal factors.
“Usually the second half is a robust period for our housing loan takeouts and we also have record short-term loans,” Benjamin R. Felix, Jr., deputy chief executive of the fund's Operations Cluster, told reporters late Wednesday.
Mr. Felix said Pag-IBIG expects to meet its full-year targets despite an anticipated slowdown in short-term loan takeouts in November and December. How the fourth quarter plays out will decide whether the full-year goals are met.
“We are very hopeful that we will be meeting our target net income, driven by… housing loan takeouts, short-term loans, and acquired assets,” he said.
As of end-September, Pag-IBIG Fund had released P111.29 billion worth of housing loans and P88.64 billion worth of short-term loans. Mr. Felix said the fund aims to achieve its target of more than P165 billion in housing loan takeouts and around P120 billion in short-term loans.
Takeout refers to the fund's assumption of mortgages originated by developers, which turns their home buyers into Pag-IBIG customers.
The fund's assets stood at P1.338 trillion at the end of August.
Mr. Felix also noted that savings under the Modified Pag-IBIG II (MP2) program — a voluntary five-year savings offering that runs alongside the fund's regular membership savings — continue to grow as more Filipinos defer big-ticket purchases and choose to save instead. The MP2 savings program posted a 7.12% return in 2025, higher than the 6.62% dividend rate for regular savings, according to data presented by Pag-IBIG Fund. Dividend payouts like these come from the fund's earnings, linking Pag-IBIG's profitability directly to the returns members receive on their savings.
Asked about the outlook for MP2 dividend rates in 2027, Mr. Felix said he expects them to remain favorable. Rates on both savings programs are declared once each year's performance has been tallied.
Originally reported by Justine Irish D. Tabile for BusinessWorld.
