Pag-IBIG posts P31.18-bilion profit in 2020 

State-run Home Development Mutual Fund or Pag-IBIG Fund posted a net income of over P30 billion in 2020 despite the economic slowdown caused by the pandemic, according to a report by GMA News.

“I’m happy to report that our net income reached P31.18 billion last year, marking the fourth consecutive year that Pag-IBIG Fund’s net income surpassed the P30-billion mark,” Housing Secretary Eduardo del Rosario said in a statement.


Del Rosario, as secretary of the Department of Human Settlements and Urban Development chairs the Pag-IBIG Fund’s board of trustees.

“Pag-IBIG Fund’s strong showing despite the pandemic is a testament of how well the Filipino workers’ fund is managed. And, as we continue to support the call of President Rodrigo Duterte for government agencies to provide more social benefits to more Filipinos, we are giving back P29.40 billion, around 94% of our net income, to members in the form of dividends,” he said.

Under Pag-IBIG Fund’s charter, the agency is required to declare at least 70% of its annual net income as dividends which shall be credited proportionately to its members’ savings.

The Pag-IBIG Fund board, however, approved to declare 93.68% of its earnings – more than what its charter requires and the highest in the agency’s history– to extend the most benefit to its members especially during these difficult times, according to del Rosario.

With this, the Housing chief said that members will enjoy a higher-than- expected return on their Pag-IBIG savings.

He said that the year 2020 dividend rate for the Pag-IBIG Regular Savings shall be at 5.62%, while the Modified Pag-IBIG 2 (MP2) Savings shall be at 6.12%.

Pag-IBIG Fund CEO Acmad Rizaldy Moti said that the 93.68% dividends payout is the highest in the agency’s history.

“It’s also the highest dividend payout ratio our Pag-IBIG Fund Board can declare while still maintaining our target Capital Adequacy Ratio,” Moti said.

According to Moti, Pag-IBIG Fund maintains a Capital Adequacy Ratio (CAR) of 15%, which is higher than the 10% threshold set by the Bangko Sentral ng Pilipinas (BSP) for the banking industry.

Even if Pag-IBIG is not regulated by the BSP, Moti said that the agency voluntarily maintains a high CAR which includes a buffer to account for current economic challenges, to protect the funds of its members and to maintain the agency’s financial stability.

The Pag-IBIG chief also thanked borrowers who continued to pay their loans last year, despite the economic slowdown.

In 2020, home loan payments reached P46.65 billion, while cash loan payments totaled P56.17 billion enabling the agency maintain its strong fiscal position.


“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” 

-Franklin D. Roosevelt

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