Philippine Guarantee Corp.’s (PhilGuarantee) net income registered a triple-digit growth of 182 percent last year, according to a statement released by the Department of Finance (DOF) yesterday.
DOF said the agency posted a net income of P1.37 billion in 2021, significantly higher versus the P487 million registered in 2020.
Alberto Pascual, PhilGuarantee president and chief executive officer, said based on initial financial reports, the nearly two-fold increase in the corporation’s net income was the result of improving cost-to-income outcomes from P1.16 billion in 2020 to P850 million in 2021.
Pascual said the income from loan guarantees in 2021 amounted to P1.59 billion, slightly lower by 2 percent from P1.62 billion in 2020, but non-guarantee income generated from investments and other income rose 176 percent to P2.32 billion in 2021 from P839.6 million year-over-year.
Pascual also reported that for 2021, the agency assisted more beneficiaries than in 2020, up by 6.5 percent, with a total of 202,269 micro, small and medium (MSME) entrepreneurs, housing borrowers and agri-based workers.
PhilGuarantee also partnered with an aggregate of 128 banks and other financial institutions for the various credit guarantee facilities.
Meanwhile, Pascual said the corporation’s assets grew 6 percent from P57.41 billion in 2020 to P60.88 billion last year, and its liabilities declined by 9 percent from P37.83 billion in 2020 to P34.32 billion in 2021.
Its total equity increased by 36 percent, from P19.57 billion in 2020 to P26.56 billion last year.
PhilGuarantee is currently disposing its big-ticket assets located in the cities of Manila, Quezon and Mandaluyong to generate an additional P7.33 billion in income this year, Pascual said.
For 2022, Pascual said, PhilGuarantee is projecting to grow its portfolio, backed by its commitment to support the MSMEs, housing borrowers, agri-based workers and other priority sectors.
President Duterte issued in 2018 Executive Order (EO) No. 58, merging the functions of agencies performing loan guarantee functions into one corporation — PhilGuarantee — to efficiently monitor and utilize government resources in these guarantee mechanisms.
Under the EO, the President approved the merger of the Home Guaranty Corp. with the Philippine Export-Import Credit Agency; transferred the guarantee functions, programs and funds of the Small Business Corp., and the administration of the Agricultural Guarantee Fund Pool and the Industrial Guarantee and Loan Fund to PhilExim.
PhilExim was then renamed as the Philippine Guarantee Corp. – Angela Celis
