Savings

Pag-IBIG raises dividend rates for savings

MANILA, Philippines – The state-run Real Estate Development Pool (Pag-IBIG) has increased dividend rates for regular and voluntary savings after approving a record 31.79 billion pesos in dividends for members Last year.

Housing Secretary and Pag-IBIG President Eduardo del Rosario said the agency had adjusted the dividend rates for regular savings to 5.5% and for the voluntary program to 6%.

In 2021, the Pag-IBIG dividend rates were set at 5.62% for regular savings and 6.12% for voluntary savings.

Del Rosario said the agency has increased dividend rates to pay the highest possible returns to members whose incomes have been reduced by the pandemic. He assured members that Pag-IBIG’s finances remain intact despite the decision to adjust dividend rates.

“Offering higher returns is part of our efforts to provide the best benefit to our members, especially as they face economic challenges due to the ongoing pandemic, [all the] while ensuring the sustainability and stability of the fund,” said Del Rosario.

Pag-IBIG CEO Acmad Rizaldy Moti also said approved dividends amounted to around 92% of the housing fund’s record net income of 34.73 billion pesos for 2021.

Under its charter, Pag-IBIG is mandated to allocate at least 70 percent of its annual profit for the payment of dividends to its members.

“Pag-IBIG has always taken care of the well-being of our members. When we perform well, our members benefit the most,” Moti said.

Moti attributed the increase in dividends to the improving economic environment which has expanded Pag-IBIG’s loan portfolio even during the pandemic. Last year, Pag-IBIG also saw a million of its members return to its fold when they returned to work after mobility restrictions were lifted.

Savings in Pag-IBIG increased by more than 32% to a record 63.67 billion pesos in 2021 from 48.18 billion pesos in 2020, even surpassing the pre-pandemic total of 50.38 billion pesos. pesos in 2019.

Regular savings accounted for more than 59% of the total at 37.71 billion pesos, while voluntary savings through the modified Pag-IBIG 2 nearly doubled to 25.95 billion pesos.