GSIS eyes P120 billion income this year

MANILA, Philippines — The Government Service Insurance System (GSIS) is looking at a nearly 60 percent increase in its bottomline this year to P120 billion, banking on sustained investment returns.

GSIS executive vice president Michael Praxedes said the pension fund for government workers and retirees has set an internal target of P120 billion in net income for this year. This is 58 percent higher than the P75.99 billion profit recorded last year.

“It’s a very big target but we are making the runway,” Praxedes told The STAR.

As of the first semester, GSIS had already reached half of its full-year target.

GSIS saw its net income surge to P61 billion in the first six months from a measly P3 billion in the same period last year. Revenues jumped by 84 percent to P144 billion, driven by double-digit increases in gain on equities, interest income, and stock dividends on its investment portfolio.

The strong bottomline was also attributed to the 21 percent rise in premiums, as well as the almost 70 percent decline in claims, losses and benefits to P286 million.

GSIS, meanwhile, reported a 10-percent rise in expenses to P83 billion. The agency also improved its expense-to-revenue ratio to 58 percent from 62 percent last year.

As of end-June, the total assets of GSIS stood at P1.6 trillion, up eight percent.

GSIS president and general manager Wick Veloso said the pension fund’s investment approach is focused on housing, power, food, and healthcare.

“These sectors are at the heart of the government’s socio-economic agenda, and investing in them is an investment in the Filipino people,” Veloso said.

GSIS has maintained its investment in crucial domestic sectors, increasing it by 12 percent to P1.2 trillion. This investment encompasses government securities, loans, real estate, infrastructure, food, financial services, energy, and mining.

Its foreign investment also increased by eight percent to P204 billion, mainly on bonds and equities in a bid to diversify, access more opportunities abroad and optimize its portfolio returns.

It has also invested P114 billion in non-key sectors.