GSIS income rises to P37 billion in January-March

MANILA, Philippines — The Government Service Insurance System (GSIS) saw its net income jump by 20 percent to hit P37 billion during the first quarter on the back of strong revenues from financial assets and investments.

In a statement, the pension fund for state workers said it earned P37 billion from January to March, up by 20.3 percent from P30.75 billion in the same period last year.

GSIS president and general manager Wick Veloso said the performance was driven by strong revenues, which picked up 17 percent to P85 billion from more than P70 billion a year ago.

Veloso said that GSIS saw increases in its investment in key sectors such as real estate, infrastructure, food, energy and mining.

“We 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,” Veloso said.

Further, net gains on sale and mark-to-market valuation of local equities and exchange-traded funds resulted in revenues amounting to P10 billion.

GSIS interest income from fixed income securities, including dollar and peso bonds, Treasury bills and corporate bonds, reached P9 billion.

On the other hand, maintenance and other operating expenses were 41 percent below budget with the administrative cost ratio at 2.98 percent, significantly below the 12 percent limit allowed under the GSIS charter.

As of end-March, total assets of the GSIS stood at P1.74 trillion, up 10 percent.

Its fund life remains at 2058 amid sustained investment returns.