The Government Service Insurance System (GSIS) on Wednesday reported net income of P37 billion in the first three months this year, a 21 percent increase from net income of only P30.75 billion a year earlier.
The growth in profitability was driven by strong revenue reaching P85 billion, representing a 17 percent increase year on year.
GSIS president and general manager Wick Veloso said “Our commitment to support the nation’s growth story saw increases in GSIS investments in key sectors such as real estate, infrastructure, food, energy and mining. Further, the GSIS is boosting revenue streams as it focuses on building efficiencies in its various businesses.”
On global investments, income from financial assets went up by P28 billion or 45 percent versus March year-on-year.
As of end-March this year, GSIS total assets increased to P1.74 trillion, a 10 percent increase or P156 billion higher compared to March 2023 level.
The GSIS boosted its lending program to help members better manage their finances and, for some, ease their debt burden. As of end-March this year, its Multi-Purpose Loan Flex (MPL FLEX) program disbursed P136 billion since September 2023, availed by 506,000 members.
Veloso also said the fund life of the GSIS pension fund now extends to 2058 because of sustained investment returns.
Net gains on sale and mark-to-market valuation of local equities and exchange-traded funds (ETFs) resulted to revenue of P10 billion or 234 percent higher compared to March 2023.
Interest income from fixed income securities reached P9 billion for Q1 2024. This includes holdings in USD and PHP sovereign bonds, short-dated Treasury bills, and corporate bonds.
Maintenance and other operating expenses were 41 percent below budget and the administrative cost ratio is 2.98 percent, significantly below the 12 percent limit allowed for by the GSIS Charter.
