GSIS net profit climbs by 21% in 1st quarter amid strong revenues

THE GOVERNMENT SERVICE Insurance System (GSIS) saw its net income rise by 21% in the first quarter driven by strong revenues, it said on Wednesday.

Its net income stood at P37 billion at end-March, up from P30.75 billion in the same period last year, GSIS said in a statement.

GSIS’ revenues grew by 17% year on year to P85 billion in the first quarter.

“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,” GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said.

For its global investments, income from financial assets grew by 45%, it said.

“GSIS would like to be a catalyst supporting investments in various sectors to bring down the cost of power and allow vertical integration for mining companies to process raw materials into intermediate and finished products,” Mr. Veloso said.

GSIS said its fund life is now up to 2058 amid sustained investment returns.

Net gains on the sale and mark-to-market valuation of local equities and exchange-traded funds resulted in a 234% growth in revenues to P10 billion, it said.

Interest income from fixed-income securities reached P9 billion in the quarter, including earnings from its holdings of dollar and peso sovereign bonds, Treasury bills, and corporate bonds.

GSIS’ total assets went up by 10% year on year to P1.74 trillion in the January to March period.

“Bolstering its commitment to support its 2 million members, the GSIS enhanced its lending program to allow its members to better manage their finances and, for some, to ease their debt burden,” it said.

GSIS said it has disbursed P136 billion through its Multi-Purpose Loan Flex program as of March, which was availed of by 506,000 members.

Meanwhile, maintenance and other operating expenses were 41% below budget during the first quarter, GSIS said.

Administrative cost ratio was at 2.98%, below the 12% allowed under the GSIS charter. — A.M.C. Sy