The Home Development Mutual Fund or Pag-IBIG on Tuesday reported that its annual net income for 2015 increased by 24.5 percent on better collection.
Net income totalled P20.2 billion compared to P16.22 billion registered in the previous year, Pag-IBIG Fund Chairman of the Board Chito Cruz announced during 2015 Pag-IBIG State of the Fund Address.
It was a 70 percent increase from the fund’s net income in 2010, Cruz noted.
Pag-IBIG Fund President and CEO Darlene Marie Berberabe said the increase in net income was due to high collections generated after the fund decided to outsource its collection schemes.
The agency started outsourcing its credit collections through collection agencies in January 2013 and through tele-collection services in January 2015.
The fund’s total collection was P111 billion in 2015, Berberabe noted.
“We’ve been very successful in our collection platform. The was our challenge in the past with our in-house collection. That’s why we outsourced to collection agencies,” Berberabe said.
The outsourcing scheme has reduced Pag-IBIG’s cost by almost 70 percent.
Berberabe emphasized that outsourcing has made the collection process more efficient.
The tele-collection initiative reminds members by telephone that they are in arrears.
“We’ve also outsourced our courier. Before, the in-house service was too expensive and always late that clients weren’t able to pay on time,” Berberabe said.
The agency’s gross income to P33.8 billion last year from P30.68 posted in the previous year. Cruz noted it was a 51 percent increase from the agency’s gross income in 2010.
He noted the agency’s total assets stood at P397.53 billion last year.
Cruz emphasized that Pag-IBIG was able to declare P14.14 billion in dividends at a dividend rate of 4.9 percent. This is a 17-percent increase from 4.18 percent in 2014.