State-run Government Service Insurance System (GSIS) recorded a quadruple increase in net income for the first quarter, year-on-year. The first quarter net income increased by Php29.65 billion, from Php9.05 billion last year to Ph38.7 billion this year.
The increase in GSIS’s net income was driven by the rise in stock market values, the increase in interest income, and the increase in premium contributions.
“We are happy to share this good news with our members and pensioners. Our 82nd anniversary celebration in May was made more meaningful knowing that we have fulfilled our commitment to become good stewards of the fund,” GSIS President and General Manager (PGM) Jesus Clint Aranas said.
The increase in net income is due to the rise in the market valuation of financial assets.Contributing to this increase is GSIS’ public equities portfolio which accounts for about 20% of total assets since the PSE index increased by 6% to 7,920.93 compared to last year’s ending level.
The remaining increase in net income is brought about by the increase in interest income due to GSIS’ new loan programs (such as the GSIS Financial Assistance Loan (GFAL) for personnel of the Department of Education and the GSIS Enhanced Consolidated Salary Loan Plus for members), and the increase in premium contributions due to the increase in active membership from 1.7 million last year to 1.8 million this year. As a result, revenue from premium contributions has grown by 7% for the first quarter, year-on-year.
The total assets ending first quarter 2019 has reached Php1.2 trillion, which is 6% or Php74 billion higher than the end of first quarter 2018.
“We hope that we have set the tone for a productive year ahead. Our members’ and pensioners’ trust will be our inspiration to do better,” GSIS PGM Aranas said.