Most government financial institutions (GFIs) are expected to report positive net earnings — even possibly exceed their full-year 2025 targets — based on their sustained strong performance, the Department of Finance (DOF) said.
The DOF’s upbeat outlook follows the 14th meeting of the Asset Liability Management Committee (ALCO) held on May 27, where Finance Secretary Recto reviewed the financial performance and risk exposures of major GFIs.
“With most GFIs on track to meet or exceed their agency income targets by year-end, there remains significant potential to deliver even stronger financial performance—especially if current positive trends continue through the succeeding quarters,” Recto said in a statement on Sunday.
The finance secretary did not give forecast figures.
As of March 31, 2025, the ALCO members’ total net worth rose by 1.86 percent quarter-on-quarter, driven by the increased reported net worth of most GFIs. Year-on-year, the group’s combined net worth increased by 4.16 percent.
The DOF was asked for the actual total net worth figures, but it has not been disclosed as of press time.
Chaired by the Secretary of Finance, the 2022 creation of ALCO is in line with the Administrative Code of 1981, which gives the DOF authority to oversee and harmonize the policies of GFIs and to recommend strategic actions aligned with the national government’s fiscal objectives and development agenda.
“GFIs play a very crucial role in nation-building. They provide essential financial support to priority sectors that drive our development goals—creating jobs, raising incomes, and reducing poverty,” Recto said.
“My marching orders to GFIs: Do better, deliver faster, and provide more,” he added.
The ALCO meets quarterly to discuss the investment performance of GFIs and monitor their current investment exposures in private corporations and conglomerates, ensuring that they avoid concentration risk in any single private conglomerate, including its subsidiaries and affiliates.
These GFIs include the Land Bank of the Philippines, the Development Bank of the Philippines, the Social Security System, the Government Service Insurance System, the Philippine Health Insurance Corporation, the Philippine Guarantee Corporation, the Philippine Deposit Insurance Corporation, the Philippine Crop Insurance Corporation, and the Pag-IBIG Fund.
In its most recent meeting, the DOF stated that ALCO members affirmed their commitment to continue complying with the established investment guidelines on conglomerate exposures across loans, fixed income, and equities, thereby effectively minimizing concentration risk.
The next ALCO meeting is tentatively scheduled for July 2025.
