Philexim nets P115.5 million in 2008

State-run Philippine Export-Import Credit Agency (Philexim), an attached agency of the Department of Finance (DOF), posted a net income of P115.52 million in 2008, reversing the losses it incurred the previous year as the agency put in place a number of reform measures that boosted its guarantee business.

“This is reflective of the over-all success of the initiatives introduced to turn around the financial performance of the company from a severe loss in the prior year. For the first time in its history, Philexim breached the century mark in net profit,” Philexim president Francisco Magsajo Jr. said during the agency’s 32nd anniversary celebration.

In 2007, Philexim posted losses of P395.1 million, data from the agency showed.

Magsajo said the reform measures which the agency implemented included expediting guarantee applications and cutting on expenses.

The agency’s core income from guarantee and credit insurance operations amounted to P282.84 million last year, Magsajo reported.

“Other income came principally from trading turnovers on fixed income securities which surged to P32 million from zero in the past years,” Magsajo also said.

On the expense side, Philexim reported that total expenses reached P193.24 million against a budget of P234.46 million, resulting in a net savings of P41.22 million. 

Of the expense pie, the biggest chunk went to personal services at P113.38 million. However, Philexim said this was still 10 percent under the budget despite an eight percent across-the-board increase in compensation for 2008. 

Cash outlays for maintenance and other operating expenses, meanwhile, amounted to P64.09 million. This Philexim said generated savings of P25.64 million.

For 2009, the agency is eyeing to increase the amount of loans and guarantees given to small and medium enterprises – mostly in the export business – to a total of P1 billion from the P500 million to P750 million it allocated for 2008.

The move is one of the measures Philexim is implementing to help exporters cope with the global financial turmoil.

Philexim, a government-owned and controlled corporation, is tasked to help Philippine exporters gain access to international markets and become globally competitive. Established in 1977, it is also known as the Trade and Investment Development Corp. of the Philippines. (TIDCorp).