GSIS net income up 25.5% to P25.8 billion in 2001

The Government Service Insurance System (GSIS) posted a net income of P25.813 billion in 2001, or 25.5 percent higher than its net revenue of P20.568 billion in the previous year. Gross income last year was P52.513 billion, 11.3 percent more than that of year 2000.

The hefty increase in the earnings of the GSIS came about despite a huge hike of P4.614 billion in its claims and benefits disbursements. In year 2001, P22.281 billion was paid out for claims compared to P18.240 billion in 2000 or an increase of 25.44 percent,

GSIS president and general manager Winston F. Garcia said total salary loans granted to 763,395 members in 2001 reached P39.345 billion which is P7.539 billion over the P31.806 billion in 2000. On the other hand, policy loans granted in 2001 to 770,520 members amounted to P7.294 billion or P1.283 billion bigger than the P6.011-billion disbursement for year 2000.

Garcia attributed the financial gains of the system to, among others, an 11.38-percent improvement in investment income from P12.096 billion in 2000 to P13.473 billion in 2001. Another contributory factor was a huge savings incurred by the system in its administrative expense loading where 7.27 percent or P3.819 billion of the gross income was spent instead of the legally allowable 12 percent or P6.30 billion.

Today the GSIS’ assets, which could be the biggest among the GFI’s, stand at P205.451 billion, 13.4 percent more than its assets of P181.064 billion in 2000.

Because of the very reliable financial condition of the GSIS, Garcia said that an P18-billion four-year funding for the system’s Bahay Ko (individual real estate loan) program was approved by the GSIS board of trustees. Last December, the system also declared a 90- percent increase on its dividends, or an increase of P650 million, and a high 25-percent hike on the pension of GSIS retirees who left government service on or before 1976.

On May 31, its 65th anniversary, the GSIS will rollout eight new programs on housing, retirement and e-services for its 1.45 million members.