Pag-IBIG Fund posts higher profit as loan releases support year-end targets

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Pag-IBIG Fund profit up

Highlights

Pag-IBIG Fund net profit rises 23.51% to P63.226 billion in the first nine months, driven by strong loan takeouts and seasonal demand.
By end-September, Pag-IBIG released P111.29 billion in housing loans and P88.64 billion in short-term loans, targeting over P165 billion and P120 billion respectively for the year.
Pag-IBIG Fund’s total assets reach P1.338 trillion in August, with MP2 savings posting a 7.12% return for 2025, outpacing regular savings at 6.62%.

Profit growth and lending outlook

As reported by BusinessWorld Online, the Home Development Mutual Fund, or Pag-IBIG Fund, says net profit rises 23.51% to P63.226 billion in the first nine months, which it attributes in part to seasonal factors.

Benjamin R. Felix, Jr., Pag-IBIG Fund’s Operations Cluster deputy chief executive, tells reporters that the second half is usually a robust period for housing loan takeouts and that the fund is also seeing record short-term loans. He says the agency remains hopeful of meeting its target net income for the year, supported by housing loan takeouts, short-term loans and acquired assets.

By the end of September, Pag-IBIG Fund has released P111.29 billion in housing loans and P88.64 billion in short-term loans. Felix says the fund is aiming for more than P165 billion in housing loan takeouts and about P120 billion in short-term loans for the year.

Takeout refers to the fund’s assumption of mortgages originated by developers, making their home buyers Pag-IBIG customers.

Savings trends and balance sheet position

Pag-IBIG Fund’s assets stand at P1.338 trillion at the end of August, underscoring the scale of its role in the Philippines’ housing finance market.

Felix says savings under the Modified Pag-IBIG II, or MP2, program are growing as more Filipinos defer big-ticket purchases and choose to save instead. Data presented by the fund show the MP2 savings program posts a 7.12% return in 2025, above the 6.62% dividend rate for regular savings.

On the outlook for 2027, Felix says he expects MP2 dividend rates to remain favorable. That view suggests Pag-IBIG sees continued member interest in voluntary savings products alongside its core lending business.

In our earlier article on the Philippines’ planned sovereign bond-market reforms and expected index inclusion in 2027, we explained how standardizing pricing conventions and broadening foreign participation could improve liquidity and price discovery. We also noted that these changes alone may not translate into stronger real-economy investment unless they are matched by fiscal credibility, deeper domestic investor participation, and wider reforms that make it easier for businesses to access long-term financing.

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