Government Service Insurance System (GSIS) today reported a net income of Php37 billion for the first quarter 2024, a 21% increase from its net income of Php30.75 billion in 1Q 2023.
The growth in profitability for the 1st quarter 2024 was driven by strong revenues reaching Php85 billion. This represents a 17% increase year on year.
GSIS President and General Manager Wick Veloso said “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.”
On global investments, the income from Financial Assets went up by Php28 billion or 45% versus March year-on-year.
Veloso 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.”
As of end-March 2024, the total assets of the GSIS increased to Php1.74 trillion, posting a 10% increase or Php156 billion higher compared to March 2023 levels.
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. As of March 2024, the Multi-Purpose Loan Flex (MPL FLEX) program disbursed PHP136 billion since September 2023, availed by 506,000 members.
Veloso also said that fund life of the GSIS pension fund is now at 2058 because of sustained investment returns.
Further, net gains on sale and mark-to-market valuation of local equities and exchange-traded funds (ETFs) resulted to revenues amounting to Php10 billion. This is 234% higher compared to March 2023.
GSIS interest income from fixed income securities reached Php9 billion for Q1 2024. This includes holdings in USD and PHP sovereign bonds, short-dated Treasury Bills, and corporate bonds.
Maintenance and other operating expenses were 41% below budget and the administrative cost ratio is 2.98%, significantly below the 12% limit allowed for by the GSIS Charter.
Veloso said the GSIS is on track in the execution of its Strategy, which supports the overall growth of the economy, highlighting its investments and programs towards Pabahay (housing), Power (energy), Pagkain (food), and Pagamot (healthcare).
