Annual Report 2008 - Pag-IBIG Fund

Pag-IBIG Fund Annual Report 2008 |

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| Pag-IBIG Fund Annual Report 2008

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MESSAGE OF THE PRESIDENTOF THE REPUBLIC OF THE PHILIPPINES

As the biggest source of housing finance in the country, the Pag-IBIG Fund has been a major driving force in our nation’s

economic growth. Its affordable housing loans have become an important form of non-wage benefit for Filipino employees.

I am pleased that in 2008, Pag-IBIG once again delivered and played a key role in the administration’s poverty alleviation program. During the first half of the year, the Fund’s housing loan program exceeded the previous year’s total of P8.58 billion. And despite the impact of the global economic crisis during the latter part of the year, the Fund released a new record in housing loans in 2008 amounting to P34.03 billion.

It is also gratifying to see that the Fund has reached out to 7,271,117 in 2008 as acknowledged by the Pagasa Award granted by the Civil Service Commission to a Pag-IBIG branch this year in the group category. It is heartening that the Pag-IBIG units across the nation are working hard to carry out the Fund’s mandate to extend the benefits of membership to as many Filipinos as possible.

To the Pag-IBIG officers and staff, keep up the good work. And to all the stakeholders, let us continue to support the Pag-IBIG Fund so that it will remain not just a strong ally of the Filipino worker but also a strong contributor to nation building.

Mabuhay ang Pag-IBIG!

PRESIDENT GLORIA MACAPAGAL-ARROYO


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It has been my mission, as Chairman of the Home Development Mutual Fund (Pag-IBIG Fund) Board of

Trustees and head of the government housing sector, to ensure that Pag-IBIG remains strong in carrying out its housing mandate, while at the same time securing its stability as a provident savings institution.

I am happy to say that this year, Pag-IBIG delivered strong performances on both fronts.

In its primary role as a housing finance institution, Pag-IBIG has once again outdone itself by surpassing the previous year’s record amount of loans disbursed to individual member-homebuyers. The Fund’s promise of very affordable housing finance fulfilled the dream of many members to finally become homeowners.

With its focus on aggressive collections, the Fund’s assets continued its accelerated growth this year. It also earned a record net income level that will benefit members through dividends added to their savings.

Indeed, consistent growth has been the story of Pag-IBIG for the last seven years. And with the key organizational reforms that its officers and employees began implementing this year, fully supported by the Pag-IBIG Board, I am confident that this story will continue.

We ended the year faced with new challenges brought about by a global economic slowdown. But with the sound fundamentals and robust policies we have put in place, combined with the proven dedication of its workforce, I am confident that Pag-IBIG will continue to be a strong supporter to the housing sector, to its members, and to

the entire nation.

Mabuhay!

VICE PRESIDENT NOLI DE CASTRO

MESSAGE OF THE VICE PRESIDENTOF THE REPUBLIC OF THE PHILIPPINES AND CHAIRMAN OF THE BOARD

Real strength, it has often been said, is revealed in times of adversity. That is true of an individual as it is of an organization, or an entire

nation. The year 2008 brought with it various challenges that exposed our

vulnerabilities as a nation, but also served as an opportunity to demonstrate the much-vaunted resiliency of the Filipino. The ill winds of change—both the climatologic and the economic kind—that swept across the globe did not spare us. But like the supple bamboo that we often use to symbolize our race, we weathered the storms and prevailed through the tough times.

Throughout this challenging year, the Pag-IBIG Fund remained steadfast as ever. Standing on the side of the Filipino worker, the Fund stayed true to its mandates, providing timely assistance to its members and maintaining its role as an economic driver through its strong support for the housing sector.

While the world saw in 2008 the downfall of big international financial institutions and the downturn of the global economy, the Pag-IBIG Fund bucked the prevailing trend by continuing its phenomenal rise, in the process establishing new performance records that translated to greater benefits for many Filipinos.

FORWARD AND UP

The Pag-IBIG Fund’s membership level breached the seven million mark in 2008, ending the year with over 7.27 million Pag-IBIG members. Membership grew by 6.17% since December 2007 with the registration of 2.57 million additional members, 2.07 million of which are new members and the rest, reactivated members.

The Fund’s total assets continued its steady growth, reaching P227 billion by the end of the year, an increase of 12% since the end of 2007.

In 2000, Pag-IBIG’s total assets, accumulated over its first two decades of existence, was at P113.77 billion. In a span of only eight years, we have already doubled this, adding close to the very same amount—P113.71 billion—to the Fund’s assets.

Sustaining its strong financial performance that has merited it a place among the top corporations in the country in previous years, the Fund once again broke its own record in terms of net income earnings. Its 2008 net income of P9.51 billion is almost 31% higher than that earned during the previous year, and the highest in its history thus far.

The members received their share of this record income through dividends credited to their savings. For 2008, the Pag-IBIG Fund declared 75% of its income, or a total of P7.13 billion, as dividends. This is the highest amount of dividends ever to be earmarked by the Fund in its history.

Honest to goodness collection efforts yielded positive results as total collections reached P74.34 billion for the year, an increase of 16.21% over the previous year.

The bulk of collections were from short term loans at P34.14 billion. End-user and institutional loan collections totaled P23.68 billion, and membership contributions reached P16.52 billion.

REPORT OF THE CHIEF EXECUTIVE OFFICER


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Collections from institutional loans, in particular, showed a remarkable growth of 85% during the year, reflecting the serious efforts to protect the member’s contributions and ensure not just the viability of the wholesale lending program, but the stability of the Fund itself.

Part of our strategy for improving collections is establishing partnerships with financial institutions that can provide payment facilities to Pag-IBIG members. This year saw the Fund forging more ties of this nature.

We signed an agreement with the Philippine National Bank for their E-payment services, through which members abroad registered under the Pag-IBIG Overseas Program may remit their monthly contributions and loan amortizations via PNB’s overseas banking network.

We also inked a remittance agreement with BPI that would allow employers to remit employee contributions and loan payments via the Internet, for a more accurate and faster recording of contributions.

Partnerships such as these not only helped improve our reach, but also allowed us to lower our operating costs.

HOPE IN TIMES OF NEED

With its increasing membership, growing network of branch offices and constantly improving services, Pag-IBIG is able to provide assistance in greater amounts to more Filipino workers.

Fulfilling its commitment to deliver the members’ savings upon maturity or due to other valid grounds for withdrawal, Pag-IBIG this year granted 118,845 members or their beneficiaries the provident benefits due them. Total provident claims reached P4.05 billion during the year.

An additional P97 million released as additional death benefits provided assistance to the families of 17,590 departed members.

The Pag-IBIG Fund this year also reached high marks in filling its members’ need for immediate financial assistance. For 2008, total multi-purpose loans reached P28.95 billion. The amount provided assistance to 1,708,286 members for

various needs. One highlight of this program during the year is the granting of the highest single loan availment worth P500,000. Victims of various calamities also turned to the Fund for much-needed assistance. A total of P4.38 billion worth of

calamity loans were released to 250,798 borrowers. Among those who benefited from calamity loans were members from Iloilo City, whose communities were severely

affected by typhoon Frank, which caused the worst flooding in the area in recent memory. The men and women of the Pag-IBIG Fund Iloilo Branch demonstrated the depth of their commitment when they reported

for work in the immediate aftermath of the storm to serve these members, who came in droves to apply for calamity loans. It entailed a measure of sacrifice on the part of the Pag-IBIG employees, who had to work even as they were still reeling from the same misfortune that befell the people they had to serve. That they valiantly rose to the occasion despite their own hardships echoed something about Pag-IBIG that cannot be put into numbers—the responsibility toward the members that its employees take to heart, and that has helped shape the Fund into the kind of institution it is today.

PHENOMENAL RISE IN HOUSING

Starting the year with great confidence, inspired by the record increase in end-user loans during the previous year, the Pag-IBIG Fund Board of Trustees approved a budget of P30 billion for its housing loan program.

The management had anticipated that demand for the Fund’s home loans would continue to grow, thanks to the low interest regime that had been put in place, as well as an effective marketing campaign to promote the program, and serious efforts to further streamline the processing of loan applications.

The spread of the financial crisis throughout the globe towards the end of the year, and its consequent adverse impact on our own economy, did not dampen Pag-IBIG’s housing loan performance. Demand continued to be strong. And we continued to meet it.

As a result, we ended the year with yet another record-breaking performance. Pag-IBIG released a total of P34.03 billion in end-user loans, which financed the construction or purchase of 62,507 houses. The total loan amount exceeded the year’s target by 32%, and surpassed the previous year’s record by a phenomenal 50.64%.

Not bad at all for a crisis year.Under the Fund’s institutional loan programs, our Wholesale Lending Group released a total of P5.23 billion worth of loans

for 97 housing projects, an increase of 48% in loan amount over the previous year. Total approved loans for the year, on the other hand, reached a value of P6.46 billion for 65 projects that will generate

20,930 housing units. It is worth reiterating that the loans released under the Pag-IBIG Fund’s shelter financing programs represent the actual

infusion of funds into the economy, through the high-multiplier effect of housing, no less. Thus, by pushing its lending programs for housing aggressively throughout this difficult year, Pag-IBIG also helped keep the nation’s economy going.

REBUILDING FOUNDATIONS

Pag-IBIG’s success in 2008, and indeed in the past eight years, prove that it has truly become a strong institution. What makes this success even more remarkable is that it was accomplished despite some serious limitations inherent within the organization itself. Chief among these are its organizational structure and charter, both of which are already outdated.

Whatever improvements we introduce to the Fund’s programs, and whatever heights of accomplishments we achieve, these have all been the institutional equivalent of pouring new wine into old wineskins.

To secure the Fund’s long-term growth and continued improvement, we have been carrying out serious efforts to address this anachronism. This year, even as we continued to put emphasis on delivering benefits and providing the best service to our members, we have also made significant progress in rebuilding and upgrading the Fund’s very foundations. We reached two major milestones this year: the implementation of the Fund’s new Organizational Structure and Staffing Pattern (OSSP), and the approval of the Pag-IBIG Fund Charter amendments by the House of Representatives.

With our record-breaking accomplishments, we are confident that our bid for a new charter will be met positively in the Senate as well. We can therefore proclaim with great conviction that a new charter will be signed into law by 2009, ushering in a new era of a more dynamic Pag-IBIG Fund.

Until then, we mark the end of another triumphant year for the Pag-IBIG Fund, and begin its 29th year of service filled with confidence and the resolve to continue to excel. I write this report with the world still under a heavy cloud of uncertainty brought on by the crisis. But from where we stand, we can see the light breaking through, and find strength in the knowledge that we can rise above this adversity.

ATTY. ROMERO F. S. QUIMBO

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Lifting Hope, One Home at a Time

Bakit ka mangungupahan pa, kaya mo namang magkabahay na? In its highly successful advertising campaign, this was the question—and the promise—posed by the Pag-IBIG Fund to its members,

especially those who have never before considered buying a home possible.The tri-media campaign went full blast in 2008 to promote its affordable housing loan program.

With the lowest interest rates in the market and better payment terms, Pag-IBIG’s housing loans made homeownership a viable and more practical option for many families.

In the midst of rising costs of fuel and basic commodities that added to the burden of families, Pag-IBIG gave its members the opportunity to save on their housing expenses by opting to buy one at very low monthly amortizations—as low as P1,079.19 for a P300,000 loan or P4,989.77 for a P750,000 loan.

The Fund supported its attractive loan terms with comprehensive marketing, offsite briefings, widespread information dissemination, improved processing, simplified requirements, and enhanced guidelines.

With all these efforts, the Pag-IBIG Fund carried out its housing mandate to a record level this year, opening doors to more new homeowners than ever before in its 28-year history, and proving itself once again to be the premier housing financier in the country today. Its stellar achievement in housing—over P34 billion worth of loans released to 62,227 borrowers—provided a bright spot in an otherwise drab landscape wrought by the financial crisis.

Pag-IBIG truly enables low-income workers to become homebuyers. Among those who benefited from this are families who were able to purchase homes from Pag-IBIG’s inventory of acquired assets, sold at very attrractive terms under its “Magaang Pabahay, Disenteng Buhay” program.

Since 2006, when the program was launched in conjunction with the Housing Fair inaugurated by the Housing and Urban Development Coordinating Council (HUDCC), Pag-IBIG has sold P5.57 billion worth of acquired assets.

In October 2008, the Fund once again participated in the Housing Fair organized by HUDCC, which was open to government workers, private sector employees and overseas Filipino workers. It also began publishing its list of acquired assets online via the Pag-IBIG Fund website, www.pagibigfund.gov.ph, for the information of the public.

Besides providing affordable housing options for many families, the program transforms the acquired assets sold into active, revenue-generating loan accounts, which translate to additonal funding for the Fund’s programs.

Seeing the need to give member-borrowers a lifeline in this time of crisis, the Pag-IBIG Fund gave its full support to the passage of a new law that will provide relief to those who are having difficulties paying their housing loan amortizations.

Through the expeditious efforts of Congress, and the support of Pag-IBIG and other concerned government institutions, President Gloria Macapagal-Arroyo on October 13, 2008 signed Republic Act No. 9507, or An Act to Establish a Socialized and Low-Cost Housing Loan Restructuring and Condonation Program, Providing the Mechanisms Therefor and for other Purposes.

The new law aims to help low-income families not to lose their homes due to difficulties in paying for their housing loan amortizations. More than 368,000 individuals with delinquent housing loans were seen to benefit from the law.

All penalties and surcharges of a loan approved for restructuring under this program shall be condoned, while a reasonable portion of the accrued interest may also be condoned at the discretion of the respective boards of the agencies concerned. The remaining accrued interest will be treated as a non-interest bearing principal to be equally paid during the term of the restructured loan. The restructured loan will also be charged an interest rate equal to that of the original loan, or not more than 12%, whichever is lower. No processing fees or down payment shall be paid to apply for loan restructuring and condonation.

To further lower the amortizations, the payment period may be extended up to the borrower’s 70th year.

As of the end of 2008, the Pag-IBIG Fund has already drafted the guidelines to the program that will implement R.A. 9507 for its member-borrowers. Implementation of the program will begin in March 2009.

The Pag-IBIG Fund, through its shelter financing programs, has indeed become a steadfast partner of its members in realizing their dreams of homeownership - from the process of acquiring them, through the different housing loan programs, up to the process of keeping them through the tough times.


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Service Above SelfPag-IBIG Fund Iloilo helps members rise above typhoon “Frank”

On June 21, 2008 typhoon “Frank” (international codename: Fengshen) struck Western Visayas with a fury never experienced before by its residents. The storm left 531 persons dead, including 226 who

remain missing and are presumed dead. At least 2,555 others were injured. Days of continuous rain triggered flash floods, submerging many villages and towns, especially in Iloilo City and neighboring towns, and in Aklan province.

Eighty percent of Iloilo city was under water, affecting 48,836 families or 224,090 persons. Worst hit was the district of Jaro, where floodwaters were reported to have reached four meters, submerging almost the entire district. Residents of one-storey houses were forced to spend the night on their roofs while rain poured down. Trees and giant billboards fell and cars and other vehicles were swept by rampaging waters even in major streets. Houses were blown or carried away by winds or floods.

In Aklan, Frank left at least 60 people dead. Floods swept away thousands of houses, leaving 300,000 homeless. In New Washington, the 3.5 meter tall bronze monument of the late Cardinal Jaime Sin, a native son of Aklan, was seen on the ground after the storm—mute witness to the fury and devastation of the typhoon. Frank also brought destruction to Boracay Island, one of the country’s top tourist destinations, destroying boats and ramming the seawalls of resorts.

The City Schools Division suspended classes as schools were turned into evacuation centers. Many students and their families were also among the victims. Electricity remained cutoff in most parts of Iloilo and the whole of Capiz, Aklan and Antique for almost a week. Major roads leading to the provinces of Aklan and Capiz were impassable.

For the Pag-IBIG Fund family, the calamity struck home as employees of the Iloilo City branch were among those ravaged by typhoon Frank. Ms. Heide Espino of the Loans Origination and Accounting Division stayed for hours on their rooftop during the flood. The staff house where Ms. Lourdes Uy, the Branch Manager, stayed was totally damaged. Ms. Selly Recabar’s house was under six feet of floodwater, damaging all their furniture and other belongings. Ms. Mylene Cortel of the Housing Loan Division had the harrowing experience of getting caught up in raging floodwaters while she and her family tried to go to a higher place, and had to spend the night in the house of a benevolent stranger, enduring cold and hunger.

But as the Ilonggos say, Salamat sa Dios, buhi kami (Thank God, we’re alive).

GOING THE EXTRA MILE

Calamity victims also flooded the branch after the whole of Western Visayas was declared a calamity area.

For the month of July, the branch processed 18,331 calamity loan applications amounting to P387.70 million. The following month, 6,977 applications were approved amounting to P134.98 million, while 2,869 more loans were released in September worth P53.28 million. All in all, the Pag-IBIG Fund Iloilo City Branch extended help to 28,177 calamity victims with a total amount of P575.96 million.

To expedite the calamity loan processing, certain functions like verification of loan status and other queries were delegated to the Marketing and Enforcement Division. Pag-IBIG Cebu branch sent a four-man team to assist in the processing. Staff from other divisions likewise assisted in the releasing of checks. Employees headed by Ms. Uy had to extend office hours until 9:00 pm on weekdays, and work overtime on Saturdays to serve the members.

When the system bogged down, they worked manually to ensure continued service, posting by hand the names of borrowers on the bulletin boards for them to check if their loans are ready for release.

The branch conducted off-site processing as well to address the immediate need of members from the provinces of Capiz and Aklan. Instead of forwarding applications to the Iloilo office, as they normally do, the Roxas extension office received and processed applications. The three employees in Roxas, headed by Mr. Emmanuel Biona, were assisted by a task force of four employees from Bacolod and one from Iloilo. Every week, two signatories took turns coming to the Roxas extension office. Checks were released at the Governor’s Hall of the Capiz Provincial Capitol thru the permission and kindness of Governor Arancillo Tanco.

Despite their own losses and emotional trauma, the men and women of Iloilo branch came through, putting the member’ needs above their own. Their commitment as a public servant is indeed service above self.

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Pag-IBIG Fund Annual Report 2008 |Pag-IBIG Fund Annual Report 2008 |

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Pag-IBIGAT A GLANCE

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Republic of the PhilippinesCommission on Audit

Commonwealth Avenue, Quezon City, Philippines

THE BOARD OF TRUSTEESHome Development Mutual FundThe Atrium of Makati, Makati AvenueMakati City

We have audited the accompanying financial statements of Home Development Mutual Fund, which comprise the balance sheet as at December 31, 2008, and the statement of income, statement of changes in net worth and cash flow satement for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the Philippines. This responsibility includes: designing, imple-menting and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate ac-counting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibiliy is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical require-ments and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks as-sessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evalu-ating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Home De-velopment Mutual Fund as at December 31, 2008, and of its financial performance and its cash flows for the year then ended in accordance with accounting principles generally accepted in the Philippines.

COMMISSION ON AUDIT

LUZ LORETO-TOLENTINO Director IV

March 31, 2009

INDEPENDENTAUDITOR’S REPORT

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Pag-IBIG Fund Annual Report 2008 |Pag-IBIG Fund Annual Report 2008 |

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Notes 2008 2007A S S E T S

Current AssetsCash and cash equivalents 3 3,979,708,093 3,361,116,095Marketable securities 4 1,459,312,340 13,564,725,631Loans receivable, net 5 24,127,181,767 19,827,029,393Mortgage contracts receivable, net 6 22,122,148,948 15,977,217,648Sales contracts receivable, net 7 16,731,779,354 10,917,370,435Accrued interest receivable 1,666,976,077 1,877,984,857Advances to officers and employees 5,323,041 8,212,669Accounts receivable, net 8 1,120,786,151 1,515,037,702Other current assets 9 111,243,957 144,911,791

71,324,459,728 67,193,606,221

Non-Current AssetsLoans receivable, net 5 17,800,204,921 15,309,866,956Mortgage contracts receivable, net 6 35,406,836,492 30,607,536,458Sales contracts receivable, net 7 46,222,923,465 35,953,645,856Investments 10 35,184,321,198 31,339,513,422Items under litigation, net 11 12,657,340,169 13,616,024,270Acquired assets, net 12 7,208,498,614 7,020,811,408Property and equipment, net 13 1,546,380,671 1,510,600,278Other assets 14 70,588,653 79,652,263

156,097,094,183 135,437,650,911

TOTAL ASSETS 227,421,553,911 202,631,257,132

LIABILITIES AND NET WORTH

Current LiabilitiesAccounts payable and accrued expenses 15 6,713,811,739 4,854,885,099Other current liabilities 16 1,673,071,053 1,436,023,087Current portion of long-term liabilities 17 576,733,551 576,733,551Undistributed collections 18 528,619,136 417,508,356

9,492,235,479 7,285,150,093

Non-Current LiabilitiesLong-term liabilities 17 17,316,217,919 17,892,951,470Unearned Income 19 14,243,149,511 12,564,894,341

31,559,367,430 30,457,845,811

TOTAL LIABILITIES 41,051,602,909 37,742,995,904

NET WORTH 186,369,951,002 164,888,261,228

TOTAL LIABILITIES AND NET WORTH 227,421,553,911 202,631,257,132

BALANCE SHEETDecember 31, 2008(In Philippine Peso)

FINANCIAL PERFORMANCE

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Notes 2008 2007

INCOMEInterest income on:

Loans 8,522,063,983 8,038,271,203 Sales contracts receivable 4,229,631,268 3,677,226,665 Investments in bonds and other debt instruments

2,065,707,885 2,021,671,611

Bank deposits 205,171,438 251,558,114 Government securities 154,785,234 537,242,949

Penalties and other charges 444,867,152 642,378,956 Insurance service fees 335,826,082 269,829,336 Processing fees 199,533,559 131,039,141 Mortgage/sales administration/ origination fees

57,606,349 60,678,942

Miscellaneous service income 45,178,532 23,037,624 Income from acquired assets 18,645,065 41,975,781 Housing contributory fund 6,652,218 6,352,516 Gain from sale of stocks - 35,828,782 Other income 1,282,574,522 790,527,491

17,568,243,287 16,527,619,111

EXPENSESLending costs 20 5,646,326,716 5,616,792,835 Fund administration costs 21/28 2,324,301,091 2,618,600,594

7,970,627,807 8,235,393,429

OPERATING INCOME 9,597,615,480 8,292,225,682 Other expenses 22 90,885,637 114,766,180

INCOME BEFORE INCOME TAX 9,506,729,843 8,177,459,502 PROVISION FOR INCOME TAX 23 - 906,239,341

NET INCOME 9,506,729,843 7,271,220,161

STATEMENT OF INCOMEFor the Year Ended December 31, 2008(In Philippine Peso)


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Notes 2008 2007

Members’ equity at beginning of year 146,283,130,326 138,589,500,592

Collections during the year 16,605,483,636 15,476,983,264

Dividends 7,130,047,382 6,253,249,339

Provident claims/TAV offsetting (4,520,719,196) (14,036,602,869)

Members’ equity at end of year 24 165,497,942,148 146,283,130,326

Reserve for losses at beginning of year 152,608,019 149,422,191

Addition 2,043,479 3,185,828

Reserve for losses at end of year 25 154,651,498 152,608,019

Donated surplus at end of year 26 250,890 250,890

Retained earnings at beginning of year 18,518,050,806 17,500,079,984

Net income for the year 9,506,729,843 7,271,220,161

Dividends to members 27 (7,130,047,382) (6,253,249,339)

Retained earnings at end of year 20,894,733,267 18,518,050,806

Temporary decline in market value of non-current

Marketable equity securities, beginning of year (65,778,813) (200,775,758)

Deduction (111,847,988) 134,996,945

Temporary decline in market value of non-current

Marketable equity securities, at end of year (177,626,801) (65,778,813)

NET WORTH 186,369,951,002 164,888,261,228

STATEMENT OF CHANGES IN NET WORTHFor the Year Ended December 31, 2008(In Philippine Peso)


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Notes 2008 2007

CASH FLOWS FROM OPERATING ACTIVITIES

Other receipts 775,422,999 304,792,429 Paid to suppliers and employees (4,915,827,460) (4,452,687,354)Interest paid (1,450,482,531) (1,431,629,433)Income taxes paid 23 - (1,325,297,061)

Net cash used in operating activities (5,590,886,992) (6,904,821,419)

CASH FLOWS FROM INVESTING ACTIVITIES

Investment maturities 261,340,594,305 90,189,150,087 Loan repayment - multi purpose loans 31,166,961,375 25,318,592,876 Loan repayment - retail housing 20,451,919,294 17,763,324,026 Loan repayment - institutional loans 2,551,063,000 1,169,414,404 Dividends received 5,566,812 6,664,643 Investment placements/roll-over (250,184,878,707) (90,068,100,144)Loan releases - multi purpose loans (33,359,754,162) (26,469,944,766)Loan releases- retail housing (32,626,697,559) (21,739,920,578)Loan releases - institutional loans (5,102,145,364) (3,525,512,337)Purchase of property and equipment (197,703,318) (362,589,382)Proceeds from sale of property and equipment 866,253 2,561,782

Net cash (used in)/ provided by investing activities (5,954,208,071) (7,716,359,389)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from members’ contributions 16,752,994,221 14,781,556,511 Proceeds from long-term borrowings - 1,991,965,486 Provident benefit claims payments (4,012,573,609) (4,033,045,478)Repayment of long term borrowings 17 (576,733,551) (576,733,551)

Net cash provided by financing activities 12,163,687,061 12,163,742,968

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

618,591,998 (2,457,437,840)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

3,361,116,095 5,818,553,935

CASH AND CASH EQUIVALENTS AT END OF YEAR

3 3,979,708,093 3,361,116,095

CASHFLOW STATEMENTFor the Year Ended December 31, 2008(In Philippine Peso)


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1. GENERAL INFORMATION

The Home Development Mutual Fund (HDMF), also known as the Pag-IBIG Fund, or the Fund, was created on June 11, 1978 by virtue of Presidential Decree (PD) No. 1530 to address two of the country’s basic needs: generation of savings and provision of shelter for the Filipino workers.

Under this decree, two agencies administered the fund namely: (a) Social Security Systems (SSS) for the funds from private employees and (b) Government Service Insurance System (GSIS) for funds from government workers. To address the urgent need to consolidate all long-term, low-interest housing funds under the administration of a single agency to support the National Shelter Program of the then Ministry of Human Settlements, Executive Order (EO) No. 527 was issued on March 1, 1979, transferring the administration of Pag-IBIG to National Home Mortgage Finance Corporation (NHMFC). As such, NHMFC took care of the administration, custody, disposal and utilization of the funds, including the authority to promulgate implementing rules and regulation pertaining to the aforesaid functions.

On June 4, 1979, EO No. 538 was issued merging the two funds into what is now known as Pag-IBIG Fund, which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno. The Fund remained under the administration of the NHMFC until PD 1530 was amended by PD 1752 in December 14, 1980, making it an independent corporation with its own Board of Trustees.

Shortly after the administration of President Corazon C. Aquino came to power, Pag-IBIG contributions were suspended from May to July 1986. However, on August 1, 1986, then President Aquino issued EO No. 35 directing the resumption of mandatory Pag-IBIG membership under more liberal terms. Contribution rate was reduced from three per cent to one per cent for employees earning over P1,500, employer share was cut from three per cent to a fixed rate of two per cent and maximum fund salary was raised from P3,000 to P5,000.

January 1, 1987 marked the return of Pag-IBIG to a voluntary program under EO No. 90. The next eight years witnessed the growth of Pag-IBIG as a voluntary fund. On June 17, 1994, then President Fidel V. Ramos signed Republic Act 7742 which reverted the nature of Pag-IBIG membership to mandatory. The new law became effective on January 1, 1995.

Through the years, the Fund became the prime government financial institution tasked to continually perform two of the nation’s basic concerns: generation of savings and provision of shelter for the workers. As such, Pag-IBIG mobilizes a dynamic, regular, integrated, nationwide and efficient savings systems and at the same time enable low and middle-income families to realize their dream of having decent shelter.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of consolidation

The consolidated financial statements include the accounts of the Corporate Headquarters, the branches in Luzon, Visayas, Mindanao and the National Capital Region.

The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. All significant inter-company balances and transactions are eliminated in consolidation.

2.2 Basis for financial statement preparation

The financial statements of the Pag-IBIG Fund are prepared in accordance with accounting principles generally accepted in the Philippines, applied consistently in accordance with the set accounting policies.

2.3 New accounting standards

The Financial Reporting Standard Council (FRSC) approved the issuance of new and revised accounting standards which are based on International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS) issued by the IAS Board. These new standards have been renamed Philippine Accounting Standards to correspond to IAS while the Philippine Financial Reporting Standards (PFRS) corresponds to IFRS.

Starting January 1, 2006, the HDMF has adopted the new and revised accounting standards, where applicable, as follows:

PAS 1 - Presentation of Financial StatementsPAS 8 - Accounting Policies, Changes in Accounting Estimates and ErrorsPAS 16- Property Plant and Equipment

NOTES TO FINANCIAL STATEMENTS(All amounts in Philippine Peso unless otherwise stated)


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The Fund is in the process of adopting PAS 36 which is Impairment of Assets and PAS 40 which pertains to Investment Property, where the fair value model will be used.

In 2008, the Fund contracted the consultancy services of Sycip, Gorres, Velayo & Co., (SGV & Co.) to assist the Fund in the full migration to the PFRS-based standards. The project, which is a component of the Integrated Information Systems Project (IISP) started last November 2008 and is expected to be completed by October 2009.

2.4 Cash and other cash equivalents

Cash includes cash on hand and in banks, both foreign and local. Cash equivalents also include highly liquid investments that are acquired three months or less before maturity and are subject to insignificant risk of change in value resulting from change in interest rates.

2.5 Receivables

Receivables are carried at book value less provision for impairment, if any. They are classified into current, past due and non-current.

Current portion refers to the aggregate principal amortizations due for an entire year succeeding the reporting year aged zero to three months in arrears.

The past due portion refers to the principal balance of past due loans receivable or those aged as over three months in arrears.

The non-current portion refers to the aggregate principal amortizations net of current and past due portion of receivable accounts.

2.6 Allowance for probable loss

Allowance for probable loss account is set up to absorb potentially uncollectible receivables associated with the lending operations of the Fund.

The Board of Trustees, in its Resolution No. 2371, Series of 2006 dated December 22, 2006, approved the following amendments to Loan Reserves Policy:

• For Mortgage Contracts Receivable, Sales Contracts Receivable and Institutional Loans, loan loss provisioning rates are:

Loans Not Restructured

Loan Classification Restructured Loans

Current 1% 5%

Past Due 30-90 days 5% 5%

Past Due for more than 90 days 10% 10%

• For Items Under Litigation (IUL) and Acquired Assets (AA), provision for losses was increased to 20 per cent in 2008 from the 15 per cent for IUL and 12 per cent for AA in 2007.

• For uncollected Accrued Interest on Loans, allowance equivalent to 100 per cent of accrued interest is provided for loans more than six months overdue.

• For Short-term loans, loan loss provisioning is maintained at 100 per cent of the outstanding balance at year-end of Loans Receivable (LR)-Provident Loans and LR-Multi-Purpose Loans 1 (MPL1) and at one per cent for LR-MPL2 at year end.

2.7 Inventories

Inventories are carried at cost and accounted for using the FIFO method.

Tangible assets with serviceable life of more than one year but small enough to be considered as Property and Equipment and are eventually treated as expense upon issuance are also included in this account.

Financial Statements


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2.8 Investments

Investments in bonds and other debt instruments

Investments in bonds and other debt instruments are carried at cost.

These include investments in Treasury Bonds/Notes issued by the Bureau of the Treasury and bonds issued by other government agencies as well as investments in Dollar Denominated Bonds issued by the Republic of the Philippines and other Philippine Corporations.

Cost of bonds and other debt instruments sold are accounted for using the specific identification method.

Investments in stocks

Investments in stocks are carried at the lower of cost or market value. The market value of the stocks are computed at end of each month. If the market value is less than the cost, the difference is treated as temporary decline in the market value of non-current equity securities and is presented as reduction in Net Worth.

These include investments in shares of stocks of listed companies in the Philippine Stock Exchange (PSE).

Cost of stocks sold is computed using the weighted average cost method.

Investment in mutual fund

Investment in mutual fund is carried at the lower of cost or market value-Net Asset Value (NAV). If the NAV computed at end of each month is less than the cost, the difference is treated as temporary decline in the market value of non-current equity securities and is presented as reduction in Net Worth.

Investment in mutual fund represents investment in Kabuhayan Mutual Fund issued by Mutual Fund Company of the Philippines, Inc., a domestic corporation incorporated on December 7, 1995 which is operated and managed by the Mutual Fund Management Company of the Philippines, Inc. (MFMCP). It is an open-end investment company with shares offered primarily to Filipinos where Home Development Mutual Fund (HDMF) is one of the original investors.

The Kabuhayan Mutual Fund is a balance fund which provides moderate risk and moderate returns through investments in equity and fixed income securities of Philippine companies and debt obligations of the Republic of the Philippines and its instrumentalities.

Land Equity-Manila Harbour Centre

Investments in land equity is carried at cost, including transaction cost. The carrying amount represents the face value of the matured Smokey Mountain Project Participation Certificates (SMPPCs) and the capitalized Real Estate Tax as at May 07, 1997, date of acquisition.

The Land Equity at the Manila Harbour Centre, Tondo, Manila consists of 18 lots with a total area of 17,293.26 sq. m. and are held for rental yields and capital appreciation. As of December 31, 2008, 7,152.69 sq. m. or 41.36 per cent were occupied by four lessees and the remaining 10,140.57 sq. m. or 58.64 per cent are available for lease.

2.9 Property and equipment (PE)

In compliance with the issuance of Commission On Audit (COA) Circular Nos. 2003-007, 2004-003 and 2005-002 dated December 11, 2003, October 4, 2004 and April 14, 2005 respectively, Accounting Memorandum Order No. 2006-012 was issued pertaining to the accounting of PE as follows:

PE are carried at cost less accumulated depreciation and amortization. Land is carried at cost.

The initial cost of the asset includes its purchase price and any incidental costs necessary in bringing the asset to working condition and location for its intended use.

Property under construction is stated at cost which covers cost of construction and other direct costs, lodged to the Unused Materials Charged to Capital Outlay account. It is subsequently booked as PE upon completion of construction. The asset is not depreciated until such time that it is completed and substantially available for intended use.


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Major repairs and improvements, renewals and betterment which extend the useful life of the PE are recognized in the carrying amount of the property and depreciated accordingly. All other costs of repairs and maintenance are charged to operations as incurred.

Residual value of PE is set at 10 per cent of the acquisition cost.

Depreciation and amortization are calculated on a straight-line basis over the estimated and/or remaining useful life of the asset.

When an item of PE is sold or retired, its cost and accumulated depreciation and amortization are dropped from the books and any gain or loss resulting from the disposal is included in the income statement.

2.10 Interest income recognition

Interest income on housing-related loans is recognized on an accrual basis which is consistent with financial institution standards. Accounts in default, however, are automatically carried on non-accrual basis. As such, interest, net of recorded accrual of three months, is recorded in the books as current income upon collection.

Interest due on Multi-purpose Loan is capitalized and recognized as income upon amortization.

2.11 Interest rate on institutional loans

Developmental Loan Program – At the option of the borrower, the loan bears an interest rate defined as the prevailing market rate (on Friday preceding the date of release of proceeds) of either of the following: 2-year Treasury Notes plus three per cent; or 91-day Treasury Bills plus five per cent, subject to re-pricing every six months.

Medium/High-Rise Condominium Building (MHRB) and Pag-IBIG City Projects-The loan bears an interest rate defined as the prevailing market rate (on Friday preceding the date of release of proceeds) of 2-year Treasury Notes, plus three per cent during the six months marketing period, and five per cent thereafter.

Group Land Acquisition and Development (GLAD) Program – The interest rate on the total loan of the community association for land acquisition and site development is nine per cent per annum. Once the loan share of the community association’s member is converted into lot purchase loan, the interest rate is adjusted in accordance with the Consolidated Guidelines of the Pag-IBIG Housing Loan Program rates prevailing at the time of loan availment.

Likewise, for projects up to house construction, the interest rate is based on the individual beneficiary’s total loan entitlements in accordance with the Consolidated Guidelines of the Pag-IBIG Housing Loan Program rates prevailing at the time of housing loan availment. This rate is charged once loan releases for house construction are effected.

House Construction Financing Line – The loan bears an interest rate defined as the prevailing market rate (on Friday preceding the date of release of proceeds) of 2-year Treasury Notes, plus three per cent.

Local Government Unit – The loan bears an interest rate of nine per cent per annum.

Developers’ Credit Facility-The developer pays interest at the rate of 14 per cent per annum. Interest rates for institutional loans are in accordance with the rates provided for in their respective programs. In no case, however, shall the said interest rates fall below the rate of 8.5 per cent.

2.12 Interest rate on housing loans

With the issuance of HDMF Circular No. 230, “Amended Guidelines of the Abot-Kamay Pabahay Program”, starting June 25, 2007, much lower interest rates were pegged as follows:

Loan Amount Interest Rate

Up to 300,000 6%

Over 300,000 to 750,000 7%

Over 750,000 to 2,000,000 10.5%


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Moreover, with the issuance of HDMF Circular No. 229, “Implementing Guidelines on the Good Payor Incentive Program”, effective June 1, 2007, a two per cent discount or reduction on applicable interest rate is given to housing loan borrowers who pay their monthly amortizations on time. Delinquent accounts for one to six months that are updated until December 31, 2007 are likewise entitled to the discount.

2.13 Interest rate on Multi-Purpose Loans

The loan bears interest at the rate of 10.75 per cent per annum for the duration of the loan.

2.14 Foreign currency transactions

Foreign currency transactions are recorded using the exchange rate existing at the time of transaction. Exchange rate difference arising from the settlement of monetary items or from reporting of foreign currency monetary items at rates other than the rate used to record the transaction or the rate adopted in previous financial statements are reported in the Statement of Income.

While assets maintained in foreign currencies are revalued, members’ equity in foreign currencies is also revalued. Revaluation of accounts in foreign currencies as at year-end was based on the following rates as at December 31, 2008: US$47.647 and CAN$ 39.0566.

3. CASH AND CASH EQUIVALENTS

This account is composed of the following:

2008 2007

Cash on hand 199,936,876 186,275,435

Cash in banks

Local 3,321,726,108 3,117,861,281

Foreign 458,045,109 56,979,379

3,979,708,093 3,361,116,095

4. MARKETABLE SECURITIES

This account consists of:

2008 2007

Investment in government securities 1,392,632,096 10,538,283,590

Time deposits 66,680,244 3,026,442,041

1,459,312,340 13,564,725,631

Investment in government securities are Treasury Bills invested with the Bureau of the Treasury and with other government banks with terms ranging from 90 days to 360 days with interest rates ranging from 4.75 per cent to 9.63 per cent.

Government securities under Hold-out agreement with initial face value of P600 million matured last July 13, 2008, proceeds of which was re-invested in government securities and/or time deposits. Termination of the escrow account has been executed and the proceeds of the securities amounting to P649,487,432 was credited to LBP Account No. 3432-1000-05. The remaining securities with face value of P43.8 million were transferred, SANS consideration, to the HDMF RoSS Account with the Bureau of Treasury.

Government securities under the general fund with a total face value of P1,286,975,844.40 lodged to the RoSS Account of HDMF with the Bureau of Treasury-Registry of Scripless Securities (BTr-RoSS) were assigned to the Land Bank of the Philippines (LBP) by way of Pledge Transactions as collateral to the Domestic Stand-By Letters of Credit (LC) issued by LBP-Public Sector Unit for various Developers.


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5. LOANS RECEIVABLE, NET

This account consists of loans granted under the following programs:

2008 2007

Multi-purpose loans 36,956,592,220 29,184,806,469

NHMFC-Unified home lending-RL 2,565,200,739 2,949,740,118

Developers interim financing 792,802,815 1,181,000,259

Developmental loans 706,140,067 772,894,047

National Housing Authority 412,500,000 412,500,000

Group land acquisition and development program 353,137,449 304,316,812

Pag-IBIG City 303,547,348 220,405,538

Restructured loans–institutional loans 237,171,470 209,244,323

Medium-rise building 220,466,948 429,995,651

Local government units 51,347,947 38,795,282

Housing construction facility 47,375,375 50,310,438

Rental housing construction 44,320,581 55,818,560

Developers’ credit facility 31,648,050 30,131,078

Acquired assets 10,952,549 22,654,804

Provident loans (971,919) 1,705,924

Miscellaneous 30,311,318 33,027,686

42,762,542,957 35,897,346,989

Current portion (24,782,537,986) (20,432,834,912)

Non-current portion 17,980,004,971 15,464,512,077

Current portion 24,782,537,986 20,432,834,912

Allowance for probable loss (655,356,219) (605,805,519)

Current portion, net 24,127,181,767 19,827,029,393


Allowance for probable loss (179,800,050) (154,645,121)

Non-current portion, net 17,800,204,921 15,309,866,956

Loans Receivable (LR) – National Home Mortgage Finance Corporation (NHMFC)–Unified Home Lending (UHL)-Restructured Loans (RL) represents the approved loan restructuring per Board Resolution No. 1974 series of 2003 on the loan granted by the Fund to NHMFC under the UHL Program. As at December 31, 2008, loan balance stood at P4,597,499,025 which is inclusive of deferred interest and penalties of P2,032,298,286.

In 2008, the Fund’s net payable to NHMFC amounting to P116,375,040.86 was offset against the Low-Del accounts of the Restructured Loan. Any additional reconciled amount due will be offset against the Low-Del and/or Mod-Del accounts as may be applicable.

Past due portion of Loans Receivable for CYs 2008 and 2007 amounted to P5,841,854,946 and P3,791,407,128, respectively.


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Current portion of loans receivable includes past due accounts which are immediately due and demandable while the non-current portion are accounts in good standing and with no payment deficiencies.

6. MORTGAGE CONTRACTS RECEIVABLE, NET

This account consists of the following:

2008 2007

Mortgage contracts receivable 60,117,485,605 48,917,526,412

Current portion (24,353,004,300) (18,000,822,919)


Current portion 24,353,004,300 18,000,822,919

Allowance for impairment (2,230,855,352) (2,023,605,271)



Allowance for impairment (357,644,813) (309,167,035)


This account represents loans to Pag-IBIG members that are backed-up by real estate mortgages under various home lending programs of the Fund.

Past due portion of Mortgage Contracts Receivable for CYs 2008 and 2007 amounted to P14,491,351,910 and P13,296,705,944, respectively.

7. SALES CONTRACTS RECEIVABLE, NET


2008 2007

Sales contracts receivable 65,221,314,429 48,875,161,795

Current portion (18,531,492,747) (12,558,347,799)


Current portion 18,531,492,747 12,558,347,799






This account has two categories as follows:

Sales Contracts Receivable consists of high yielding receivables purchased from various developers that aims to provide them with a liquidity mechanism through the Fund’s purchase of their receivables with recourse basis, substitution, buy-back features and a cash flow guarantee that ensures full remittance of the monthly interest and principal.


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Sales Contracts Receivable II consists of receivables from borrowers under home lending program using the Contract to Sell (CTS) as a primary debt instrument.

Past due portion of Sales Contracts Receivable for CYs 2008 and 2007 amounted to P8,655,349,719 and P8,421,791,027, respectively.

8. ACCOUNTS RECEIVABLE, NET

This account is composed of the following: 2008 2007

Accounts Receivable

Borrowers 847,040,402 917,645,607

Employers 170,339,473 270,250,508

Others 66,856,163 273,802,841

Collecting agents 43,719,642 59,932,909

Officers and employees 10,821,754 10,947,647

1,138,777,434 1,532,579,512


1,120,786,151 1,515,037,702

9. OTHER CURRENT ASSETS


2008 2007

Inventories 64,931,147 62,793,700

Prepaid expenses 38,182,941 46,004,147

Prepaid tax 8,129,869 36,113,944

111,243,957 144,911,791

10. INVESTMENTS


2008 2007

Bonds and other debt instruments 34,465,937,293 30,505,193,728 Land equity 302,632,050 302,632,050Stocks, net of allowance for decline in market value 297,633,832 402,221,828Investments in mutual fund, net of allowance for decline in market value 92,739,907 99,999,900

Joint venture 25,378,116 29,465,916

35,184,321,198 31,339,513,422


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Bonds and other debt instruments are investments in Treasury Bonds and Treasury Notes.

Special Reserve Fund was established to cover the funding requirements on maturing provident benefits and allowable provident savings withdrawals of members as well as the repayment of loan obligations as they fall due.

11. ITEMS UNDER LITIGATION, NET


2008 2007

Items under litigation 15,821,675,212 16,018,852,082


12,657,340,169 13,616,024,270

These are past due housing loan accounts wherein settlement is pursued thru foreclosure proceedings, triggered by the filing of the Petition for Extra Judicial Foreclosure. The amount represents the outstanding principal balance and booked accrued interests of past due housing loan accounts classified as Items Under Litigation. Foreclosure/litigation expenses are recorded as outright expenses, while the documentary stamp tax, and Capital Gains Tax (CGT) related to foreclosure continue to be capitalized. Foreclosure expenses are collected and recouped from the borrowers upon redemption of foreclosed properties or availment of the Fund’s loan restructuring program.

12. ACQUIRED ASSETS, NET


2008 2007

Acquired Assets 9,010,623,267 7,978,194,782

Allowance for impairment (1,802,124,653) (957,383,374)

7,208,498,614 7,020,811,408

Acquired assets consisting of 39,346 accounts pertain to assets acquired through foreclosure or dacion en pago, titles of which were consolidated in the name of Pag-IBIG Fund. This account also includes cancelled Sales Contract Receivable - CTS II of borrowers who failed to update/restructure their accounts within the grace period. It is valued using the carrying value or appraised value, whichever is lower. Carrying value pertains to the outstanding principal balance, recorded accrued interest, documentary stamps and capital gains tax. For cases where appraised value is lower than the carrying value, a loss is recognized corresponding to the difference by debiting Loss on Foreclosure account.


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13. PROPERTY AND EQUIPMENT, NET


Land, Building and Improvements

Transportation Equipment, Furniture,

Fixtures, IT, Miscellaneous Assets, Books

Leasehold Rights and Improvements Total

Cost

January 1, 2008 1,259,187,349 1,735,495,180 48,888,785 3,043,571,314

Addition 7,098,602 256,390,725 6,294,192 269,783,519 Restatements/adjustments (1,010,480) (36,268,484) (535,465) (37,814,429)

Disposal - (70,950,632) (1,658,741) (72,609,373)

December 31, 2008 1,265,275,471 1,884,666,789 52,988,771 3,202,931,031

Accumulated depreciation- Adjustments

January 1, 2008 375,993,321 1,135,633,934 21,343,781 1,532,971,036

Restatements/adjustments 394,414 (10,230,304) 91,099 (9,744,791)

Depreciation 36,489,629 161,124,108 6,861,051 204,474,788

Disposal - (69,491,940) (1,658,733) (71,150,673)

December 31, 2008 412,877,364 1,217,035,798 26,637,198 1,656,550,360

Net Book Value,

December 31, 2008 852,398,107 667,630,991 26,351,573 1,546,380,671

Net Book Value,

883,194,028 599,861,246 27,545,004 1,510,600,278December 31, 2007

Pag-IBIG Fund has started its project of improving its facilities as follows:

• The Corporate Headquarters has undergone a major renovation on the Atrium of Makati Condominium by repainting the building’s interior and exterior surface and ledge area, as well as replacing its lighting fixtures.

• The Fund has likewise purchased various sets of Pentium IV personal computers and Information Technology Software.

• Land, building and improvements include condominium units at Bonaventure Garden Homes acquired in settlement of Home Guaranty Corporation (HGC) obligation amounting to P16,238,822. The units are being used as staff houses for regional employees who are on official travel.


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14. OTHER ASSETS

This account is comprised of the following:

2008 2007

Rentals and other guarantee deposit 48,419,027 42,771,059

Other deferred charges 19,954,827 34,781,958

Stocks/securities of service enterprises 1,157,631 1,157,631

Contingent assets

Claims from disallowed payments 485,218 369,665

Claims from accountable officers 423,589 423,589

Miscellaneous 148,361 148,361

70,588,653 79,652,263

15. ACCOUNTS PAYABLE AND ACCRUED EXPENSES


2008 2007

Accounts payable 4,806,692,027 3,277,127,925

Accrued expenses 1,907,119,712 1,577,757,174

6,713,811,739 4,854,885,099

Accrued expenses are unpaid operating expenses which were incurred by the Fund during the year. The account is further classified into Accrued Expenses-current and Accrued Expenses-prior period. The former classification refers to expenses incurred during the year and its year-end balance is then reclassified to Accrued Expenses- prior period in the ensuing year.

16. OTHER CURRENT LIABILITIES

Details of this account are as follows:

2008 2007

Insurance payable 1,014,747,805 1,000,775,648

Vouchers payable 595,085,382 374,228,677

Miscellaneous liabilities 34,401,235 30,946,283

Withholding tax payable 21,155,580 20,459,982

GSIS / Pag-IBIG 7,681,051 9,612,497

1,673,071,053 1,436,023,087


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The insurance payable account pertains to insurance premiums of housing loan borrowers which were initially deducted from the housing loan proceeds of borrowers and subsequently collected as part of borrowers’ monthly amortizations representing insurance premium prepayments.

17. LONG-TERM LIABILITIES

This account consists of loans from the following:

2008 2007

Bonds payable

Bond flotation 9,000,000,000 9,000,000,000

Loans payable Development Bank of the Philippines 5,000,000,000 5,000,000,000

Social Security System 3,892,951,470 4,469,685,021

17,892,951,470 18,469,685,021

Current portion (576,733,551) (576,733,551)


The Fund continues to explore novel ways to generate funds for shelter programs and to ensure the steady flow of funds for housing. The Fund floated its P2 billion Kaunlaran ng Bayan Housing Bonds on March 7, 2007 which has been fully subscribed as at December 31, 2007. The housing bonds pay five per cent interest and mature on February 2012. In order to augment internally generated funds as well as to replenish internal funds disbursed for UHLP resulting from the Fund’s bailout of NHMFC for its funding backlog in 1996, Pag-IBIG tapped the Debt Market.

Relative to the bailout of NHMFC, a P5 billion loan was extended to the Fund through the credit facility of the Development Bank of the Philippines (DBP) for the funding of the UHLP loans with loan maturity of six years. This loan was refinanced in 2008 and will mature on August 25, 2012 with a change of interest rate from 8.75 per cent p.a., including Gross Receipt Tax (GRT), to a variable interest rate based on the one-year PDST-F Rate plus a spread of 0.7 per cent, exclusive of GRT effective on the next amortization period after August 25, 2007, reviewable annually.

18. UNDISTRIBUTED COLLECTIONS


2008 2007

Housing loan 415,827,838 341,179,724

Short-term loans 47,775,873 4,284,276

Unidentifiable 34,286,958 31,996,071

Posting clearing account - MC 19,383,193 9,195,320

Other housing related 10,604,605 30,436,709

Contributions 438,663 114,250

Insurance claims 302,006 302,006

528,619,136 417,508,356


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Part of this account refers to the temporary pool of collections like loan amortizations paid by borrowers and remittances of members’ contributions from local and foreign banks which remain unidentified, unallocated or unpostable as of the close of the transaction date. It is the Fund’s policy that all identified collections must be allocated or posted to particular accounts within five days from receipt of the ticket.

Inter-office transactions which at month-end are in transit for transfer to the branches carrying the account thus, are left floating in the Due to/from Accounts are likewise lodged to Undistributed Collections. These transactions are subsequently responded and allocated by the branch of destination.

The Undistributed Collections-Housing Loans also includes collection for accounts under Folio 1 in the amount of P230,169,270 which have not been allocated to the borrowers’ ledger.

19. UNEARNED INCOME


2008 2007

Unearned interest – MPL 6,818,591,282 5,413,598,948

Housing related/others 6,615,379,516 6,327,985,664

Acquired assets 458,815,984 530,541,115

Mortgage/sales contracts receivable 284,772,101 271,118,394

Developers 65,079,364 20,707,804

Premiums on bonds payable 375,525 315,644

Institutional loans 135,739 626,772

14,243,149,511 12,564,894,341

This account includes capitalized interests on multi-purpose loans that are amortized monthly over the term of the loan. It also includes capitalized interests and penalties on restructured loans, capitalized origination fees on loans processed prior to issuance of Circular 187 “Implementing Guidelines of the Pag-IBIG Housing Loan Program for Middle-Income and Overseas Pag-IBIG Members”, and collections for restructured accounts undergoing foreclosure proceedings pending the expiration of one year seasoning period.

20. LENDING COSTS

The lending costs of the Fund, which pertains to direct costs identifiable with the income generating programs of the Fund grouped under housing loans and short term loans, are the following:


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2008 2007

Personal services

Bonuses and incentives 277,429,430 204,112,076

Salaries and wages 263,798,209 239,554,924

Social security premiums/contributions 177,270,361 134,239,818

Commutable allowances/fringe benefits 102,261,445 101,210,447

Overtime pay and night premiums 9,661,554 8,274,259

830,420,999 687,391,524

Maintenance and other operating expenses

Losses/depreciation/amortizations/discounts 2,283,798,311 2,630,630,848

Interest and dividends 1,368,237,390 1,461,970,415

Other services 334,430,294 305,244,558

Costs on foreclosure 102,881,185 99,745,805

Rent and association dues 101,830,442 95,541,863

Extraordinary and miscellaneous 75,239,805 77,812,914

Loan collection charges 60,681,354 34,758,653

Water, illumination and power 57,248,704 54,417,816

Supplies and materials 42,649,428 36,516,469

Communication services 41,340,748 37,393,178

Travelling expenses 15,742,144 12,752,096

Taxes, duties and fees 2,014,580 1,850,557

Other lending costs 329,811,332 80,766,139

4,815,905,717 4,929,401,311

5,646,326,716 5,616,792,835

21. FUND ADMINISTRATION COSTS

Fund administration costs are those items associated with the upkeep and maintenance of Members’ Total Accumulated Values (TAVs) and other operating expenses such as those related to savings generation, marketing and enforcement, provident claims, fund management and other administrative services which are chargeable to the two per cent of previous year’s Net Fund Assets as provided in the HDMF Charter.

For the year 2008, the fund administration costs, inclusive of gross receipts tax amounting to P272,309,301, aggregated to P2,324,301,091 or 1.18 per cent of CY 2007 net fund assets of P196,340,348,947 which is lower than the statutory limit of two per cent per Section 17 of PD 1752. Details are presented below:


30



2008 2007

Personal services

Bonuses and incentives 258,847,616 193,239,494

Salaries and wages 243,018,215 221,297,343

Social security premiums/contributions 170,515,002 124,767,276

Commutable allowances/fringe benefits 100,394,630 98,087,455

Overtime pay and night premiums 9,313,968 7,751,270

Directors and committee members’ fees 564,000 561,000

782,653,431 645,703,838

Maintenance and other operating expenses

Other services 360,653,080 354,077,095

Taxes, duties and fees 303,373,278 293,846,395

Advertising and publication 150,660,883 82,521,358

Losses/depreciation/amortizations/discounts 136,257,582 386,649,901

Extraordinary and miscellaneous 131,728,769 199,186,866

Rent and association dues 111,712,618 109,220,242

Water, illumination and power 54,249,702 53,071,468

Supplies and materials 52,090,645 50,034,858

Management fees 39,610,794 -

Auditing services 34,098,041 28,880,246

Travelling expenses 29,386,596 29,809,295

Fidelity bond and insurance premiums 11,521,340 274,053,409

Loan collection charges 2,194,595 33,823,958

Others 124,109,737 77,721,665

1,541,647,660 1,972,896,756

2,324,301,091 2,618,600,594

22. OTHER EXPENSES


2008 2007

Death benefits 96,469,392 93,092,927

Compulsory optional retirement (5,583,755) 21,673,253

90,885,637 114,766,180


31



23. INCOME TAX

The Fiscal Incentive Review Board (FIRB) approved the Fund’s application for CY2008 tax subsidy in the total amount of P1,954,204,403 per FIRB Resolution Nos.4-08 dated April 21, 2008 and 14-08 dated December 9, 2008 respectively, covering the Fund’s income tax for the year 2008. Hence, no amount of income tax was paid for the year.

24. MEMBERS’ EQUITY

This account reflects the members’ contributions to the Fund; the corresponding employers’ counterpart of the members’ contributions as well as the annual dividends of members. The account is reduced by the provident claims of members and offsetting of unpaid provident/multi purpose loans against Total Accumulated Values (TAVs).

25. RESERVE FOR LOSSES

The guarantee insurance premiums of National Home Mortgage Finance Corporation (NHMFC) originated accounts such as Folio I, P50 million, Overhang and Bagong Lipunan Sites Services (BLISS) are treated as reserve funds.

26. DONATED SURPLUS

This account refers to the lot acquired by the Fund through donation from the provincial government of La Union on October 27, 1997 where La Union Branch’s building was built, recorded in the book at market value at the time of acquisition.

27. DIVIDENDS

The Fund sets aside P7,130,047,382 or 75 per cent of its Net Income after Tax as dividends for the year 2008, which shall be credited proportionately to Members’ TAV. The dividend rate is equivalent to 4.68 per cent of the Fund’s average members’ equity.

28. HIRING OF CONSULTANCY SERVICES

In its desire to deliver more quality services to its members and align itself, with global standards on financial statements preparation and presentation, the Fund hired the services of Consultants for its various projects.

28.1 Management projects

The Fund embarked on the Integrated Information Systems Project (IISP) to be globally competitive and to keep at pace with the changes brought about by technological advancement. The project was approved by the Board of Trustees, in its 195th Board Meeting on April 25, 2003 per Board Resolution No. 1991, Series of 2003.

To assist the Fund in the procurement of the integrated system needed in the IISP, as well as prepare its eventual transition to the target system, the Fund engaged the services of SGV and Co. (SGV) on April 23, 2007 for the following Management Projects:

Project 1 – Records Management Support Project 2 – Bid Process Management and Project Support Project 3 – Development of IT Policies and Procedures

28.2 Non-performing assets (NPA) resolution program

On November 29, 2007, the Fund hired the financial advisory services of Ernst & Young Transaction Advisory Services, Inc. to assist the Fund in performing a strategic review/analysis and evaluation of its NPA Portfolio and developing/implementing an NPA portfolio Resolution Program for the purpose of selling its non-performing assets.

28.3 Philippine Accounting Standards (PAS) / Philippine Financial Reporting Standards (PFRS) / Enterprise Risk Management (ERM) / Asset Liability Management (ALM)

On October 18, 2008, the Fund entered into a contract with SGV & Co. engaging its consultancy services to assist the Fund in the adoption and implementation of the PAS/PFRS and in understanding the methodologies, tools and techniques in ERM and ALM.

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OFFICERS’ DIRECTORY

34

Atty. Romero F.S. QuimboChief Executive OfficerRm. 804, Atrium of MakatiMakati Ave., Makati CityTel. No. 816-4402 / loc. 313

Jaime A. FabiañaDeputy Chief Executive Officer / NCR Operations ClusterRm. 804, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4228 / loc. 356

Emma Linda B. FariaDeputy Chief Executive Officer / Support Services ClusterRm. 802, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4196 / loc. 394

Tessie M. GonzalesDeputy Chief Executive Officer / Regional Operations ClusterRm. 802, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4457 / loc. 239

Atty. Robert John S. CosicoVice President / Legal & General Counsel GroupRm. 805, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 810-0098 / 816-3006 / loc. 359

Atty. Alex M. AlvarezHead / Corp. Business & Legal Advisory DepartmentRm. 805, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8234 / loc. 292

Atty. Romualdo D. MalateDepartment Manager III / Legal DepartmentRm. 805, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4227 / loc. 360

Margie A. JorilloVice President / Public Relations & Information Services GroupRm. 807, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4198 / 811-4122 / loc. 363

Maria Joyce M. RojasDepartment Manager III / Public & Media Affairs DepartmentRm. 807, Atrium of MakatiMakati Ave., Makati CityTel. No. 811-4176

Atty. Ruben M. ArcayVice President & Corp. Board SecretaryOffice of the Board of TrusteesRm. 806, Atrium of MakatiMakati Ave., Makati CityTel. No. 817-0493 / loc. 346

Thelma I. RepedroVice President / Internal Audit Service GroupRm. 810, Atrium of MakatiMakati Ave., Makati CityTel No. 819-1523 / loc. 247

Nelin P. ParaisoDepartment Manager III / Financial Audit DepartmentRm. 810, Atrium of MakatiMakati Ave., Makati CityTel. No. 848-8271 / loc. 233

Voltaire M. Dela RosaVice President / Management Services GroupRm. 810, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-816-3004 / loc. 206

Wennie B. JaudianDepartment Manager III / Corporate Planning DepartmentRm. 810, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8204 / loc. 384

Atty. Digna P. MagpantayDepartment Manager III / Research & Development DepartmentRm. 810, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4155 / loc. 252

Florentino E. España Jr.Head / Administrative Services SectorRm. 605, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4382 / loc. 300

Delia L. BernardoVice President / Facilities Management & General Services GroupRm. 704, Atrium of MakatiMakati Ave., Makatio CityTel. Nos. 810-0009 / 811-4140 / loc. 391

Wilfrido Nacito S. ReyesDepartment Manager III / General Services DepartmentRm. 704, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-2345 / 848-8215 / loc. 302

Lora B. RiveraDepartment Manager III / Facilities & Office Services DepartmentRm. 704, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4121 / 816-1524 / loc. 309

Delia D. RoblesVice President / Human Resource Services GroupRm. 706, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4226 / 811-4235 / loc. 279

Esperanza G. ValleDepartment Manager III / Human Resource Management Dept.Rm. 705, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4485 / loc. 274

Acmad Rizaldy P. MotiSenior Vice President / Info. Technology Services SectorRm. 408, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8224 / 811-4437 / loc. 341

Francis T. SantosVice President / Computer Operations & Support Services GroupRm. 408, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 810-0492 / 811-4280 / loc. 269

Carlos A. LatorreDepartment Manager III / Information Systems Security DepartmentRm. 408, Atrium of MakatiMakati Ave., Makati CityTel. No. 891-2788 / loc. 397

Minerva Teresita M. De GuzmanDepartment Manager III / Integrated Imaging Department 317 Justine BuildingSen. Gil Puyat Ave., Makati CityTel. Nos. 892-8549 / 892-4789/ 812-4731 loc. 701

Elizabeth L. BrionesHead / Information Systems GroupRm. 401, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4233 / 811-4345 loc. 203

Florencio B. CortezDepartment Manager III / Data Center DepartmentRm. 401, Atrium of MakatiMakati Ave., Makati CityTel. No. 811-4139

Yolanda L. EspinasVice President / Finance GroupRm. 605, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8271 / 812-7452 / loc. 354

Yolanda C. VillaturaDepartment Manager III / Operations Accounting DepartmentRm. 604, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8214 / 811-4046 / loc. 365

Reynaldo M. MalayaVice President / Fund Management GroupRm. 407, Atrium of MakatiMakati Ave., Makati CityTe;. Nos. 811-4340 / 848-8229 / loc. 324

Jose M. ManaleseDepartment Manager III / Treasury DepartmentRm. 407, Atrium of Makati Makati Ave., Makati CityTel. Nos. 848-8233 / 811-4259 / loc. 407

Rosana A. FernandezDepartment Manager III / Investment DepartmentRm. 405, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4297 / 811-4154 / loc. 220

Rafael Odes M. Abaño IIIVice President / Housing Operations SectorRm. 711, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4394 / loc. 355

Florencio O. Galang, Jr.Department Manager III / Servicing DepartmentRm. 108, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4230 / loc. 449

Purita M. BautistaDepartment Manager III / Loans Evaluation Department IRm. 701, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4194 / 811-4143 / loc. 367

Cynthia A. HansenDepartment Manager III / Loans Evaluation Department IIRm. 711, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8228 / loc. 433

Ma. Cristina M. ReyesVice President / Loans Management GroupRm. 314, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8242 / loc. 424

Elenita A. AtienzaDepartment Manager III / Billing & Collection Department IRm. 314, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4120 / loc. 381

Edna D. AnchetaDepartment Manager III / Billing & Collection Department IIRm. 315, Atrium of Makati Makati Ave., Makati CityTel. Nos. 848-8286 / loc. 444

Yolanda M. AkolVice President / Loans Recovery GroupRm. 608, Atrium of Makati Makati Ave., Makati CityTel. Nos. 811-4246 / 848-8266 / loc. 377

Atty. Oscar S. Dela CruzHead / Foreclosure DepartmentRm. 202, Atrium of Makati Makati Ave., Makati CityTel. Nos. 811-4075 / loc. 317

Oscar T. EmpensandoDepartment Manager III / Acquired Assets DepartmentRm. 222, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4141 / loc. 312

Trinidad L. LigeraldeVice President / Housing Loans Accounting GroupRm. 801, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8284 / 848-8282 / loc. 243

Ma. Socorro R. SingzonDepartment Manager III / Finance DepartmentRm. 801, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-4079 / loc. 366

Catherine A. CausapinDepartment Manager III / Members Loans Accounting DepartmentRm. 201, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 840-3661 / 848-8258 loc. 411

Juanito V. EjeVice President / Wholesale Lending GroupRm. 710, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 810-9482 / 811-4249 / loc. 385

Editha F. PascuaDepartment Manager III / Project Evaluation DepartmentRm. 710, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 811-1988 / loc. 358

Sigfred T. BrionesDepartment Manager III / Project Management & Implementation Dept.Rm. 709, Atrium of MakatiMakati Ave., Makati CityTel. Nos. 848-8213 / loc. 343

OFFICERS’ DIRECTORY

35

Emeterio B. Gonzales, Jr.Vice President / Provident Operations - NCR North Group768 Mac Douton BuildingEDSA cor. East Avenue, DilimanQuezon CityTel. Nos. 920-9816

Wilfredo T. CruzDepartment Manager III / Kamias Branch768 Mac Douton BuildingEDSA cor. East Avenue, DilimanQuezon CityTel. Nos. 929-1854 / 922-6781

Josephine R. SantosDepartment Manager III / Caloocan BranchPuritan Philippines, Inc. (PPI) Building355 EDSA cor. Gen. Tirona St.Caloocan CityTel. Nos. 366-7655 / 362-4184

Fromencio A. RaborarDepartment Manager III / Ortigas Branch611 Westar BuildingShaw Boulevard, Pasig CityTel. No. 633-4568

Amelia Ll. TacangDepartment Manager III / Cubao BranchG/F Union Square Condominium145 15th Avenue, Cubao, Quezon CityTel. No. 911-7262

Vincent T. NeryDepartment Manager III / Manila BranchPark N’ Ride, LawtonP. Burgos Ave., cor. Dr. Basa St.Ermita, ManilaTel. Nos. 527-6727 / 527-8520

Juliet L. Fajardo-LlanesVice President / Provident Operations - NCR South Group6/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 894-2009 / 894-1128 / 812-4731 loc. 610

Severa A. BuquidDepartment Manager III / Makati I Branch2/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 814-0450 / 814-0454/ 812-4731 loc. 202

Erlinda O. RomuloDepartment Manager III / Makati II Branch4/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 817-1057 / 812-4731 loc. 401

Melba Flor M. BadillaDepartment Manager III / Imus BranchOlma Building, Emilio Aguinaldo HighwayImus, CaviteTel. Nos. (046) 471-9567

Helen M. PanerDepartment Manager III / Pasay BranchMarvin Terraces Condominium980 Vito Cruz cor. Singalong St., ManilaTel. Nos. 526-1269 / 521-0900

Linda R. MorenoVice President / International Operations Group6/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 893-9521 / 893-4703 / 812-4731 loc. 612

Antonio P. OblenaDepartment Manager III / POP - Local Operations Department6/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 894-2195 / 812-4731 loc. 616

Amado Isabelo I. Dizon IIIDepartment Manager III / POP - Overseas Operations Department6/F Justine Building317 Sen. Gil Puyat AvenueMakati CityTel. Nos. 894-3389 / 812-4731 loc. 617

Atty. Vilma Q. FloresVice President / Regional Operations - Northern Luzon Group2/F Suburbia Commercial CenterMaimpis, City of San Fernando, PampangaTel. Nos. (045) 455-1293 / 94

Jerome P. AvilaDepartment Manager III / La Union BranchPag-IBIG Fund BuildingGovernment Center, SevillaSan Fernando City, La UnionTel. Nos. (072) 242-7810 / 242-5588 to 89 loc. 112

Mary Jocelyn N. RetuyaDepartment Manager III / Baguio BranchG/F Insular Life BuildingAbanao St., cor. Legarda Road, Baguio CityTel. Nos. (074) 619-1330 / 619-2710 loc 101

Lilia M. AnguluanDepartment Manager III / Tuguegarao BranchOng Chong Building88 del Rosario St., Tuguegarao City, CagayanTel. Nos. (078) 844-0805 / 844-1499

Pedro G. DarauayDepartment Manager III / San Fernando BranchSubirbia Commercial CenterMaimpis, City of San Fernando, PampangaTel. Nos. (045) 455-1297 / 860-4490 loc. 101

Bayani C. GarciaDepartment Manager III / Malolos Branch2/F North Centrum BuildingTabang, Guiguinto, BulacanTel. Nos. (044) 794-2166 / 794-0549 loc. 101

Josephine S. ReyesDepartment Manager III / Dinalupihan BranchG/F NEJ BuildingSan Ramon National HighwayDinalupihan, BataanTel. Nos. (047) 636-1208 / 481-3606 loc. 102

Marilene C. AcostaVice President / Regional Operations - Southern Luzon Group2/F High Rise Business CenterNational Highway, Halang, Calamba City, LagunaTel. Nos. (049) 545-4537 / 545-1232 / 545-1236 loc. 208

Maria Elsa C. NagaDepartment Manager III / Lucena Branch2/F Lucena Grand Central Terminal BuildingIlayang Dupay, Lucena CityTel. No. (042) 710-7890

Erlinda M. FranciscoDepartment Manager III / Calamba Branch2/F High Rise Business CenterNational Highway, Halang, Calamba City, LagunaTel. No. (049) 545-0259

Cesar V. AlmendrasDepartment Manager III / Batangas Branch2/F Caedo Commercial BuildingNational Highway, Bo. Calicanto, Batangas CityTel. No. (043) 723-6578

Marietta B. BritanicoDepartment Manager III / Naga BranchAnnelle BuildingTabuco, Naga CityTel. Nos. (054) 475-3089

Chito L. EncisoDepartment Manager III / Legazpi BranchBuban BuildingPeñaranda St. Extension, Bonot, Legazpi CityTel. Nos. (052) 480-8539 / 480-8867 loc 128

Angeles G. GultianoVice President / Regional Operations - Visayas Group3/F W. T. Tower, Mindanao Ave., cor. Archbishop St.Cebu Business Park, Cebu CityTel. No. (032) 415-5035

Ma. Lourdes Z. UyDepartment Manager III / Iloilo BranchF & E Building, Emmanuel Business CenterBenigno Aquino Avenue, Iloilo CityTel. Nos (033) 508-4532 / 335-0274

Wilfredo S. SemolavaDepartment Manager III / Bacolod BranchSt. Francis CenterAraneta St., Singcang, Bacolod CityTel. Nos. (034) 708-6187 / 433-4975

Antonio C. EnriquezDepartment Manager III / Cebu Branch2/F W. T. Tower, Mindanao Ave., cor. Archbishop St.Cebu Business Park, Cebu CityTel. Nos. (032) 234-2776

Victoria B. Dela PeñaDepartment Manager III / Mandaue Branch2/F A. S. Fortuna St., Manadaue City CebuTel. No. (032) 422-3608

Flordelis B. MenzonDepartment Manager III / Tacloban BranchPag-IBIG Fund Buildingcor Lopez Jaena & Del Pilar ExtensionsTacloban CityTel. Nos. (053) 325-53633

Ibrahim N. LajaratoDepartment Manager III / Zamboanga BranchPag-IBIG Fund BuildingSan Jose Road, Baliwasan, Zamboanga CityTel. Nos.(062) 991-9892

Ophelia L. Dela CernaVice President / Provident Operations - Northern Mindanao GroupTel. Nos. 894-2009 812-4731 loc. 704

Fermin A. Sta. TeresaDepartment Manager III / Cagayan de Oro BranchPag-IBIG Fund BuildingJ. R. BorjaMortola St., Cagayan de OroTel. Nos. (08822) 714-615 / 721-258

Juliano S. BanghalDepartment Manager III / Pagadian Branch2/F DBP Building Rizal Ave., Balangasan DistrictPagadian CityTel. Nos. (062) 214-1695 / 215-2716

Amorpatri B. BajarlaDepartment Manager III / Butuan BranchARUJ BuildingT. Carlo Extension, Butuan CityTel. Nos. (085) 342-3183 / 341-6379 / 815-2048

Ferdinand F. SanielDepartment Manager III / Iligan BranchGrd & 2nd Floor Gonzales - Gimeno Building IVTubod Highway, Iligan CityTel. Nos. (063) 221-2263 / 221-3199

Jose W. Banzon Jr.Vice President / Regional Operations - Southern Mindanao GroupPryce Tower CondominiumPryce Business Park, Bajada, Davao CityTel. No. (082) 221-0843

Elizabeth V. TinaganDepartment Manager III / Tagum BranchRamos BuildingArellano St., Tagum CityTel. No. (084) 400-4701

Rodrigo M. SuemithDepartment Manager III / General Santos2/F RDRDC BuildingSantiago Boulevard, General Santos CityTel. Nos. (083) 301-0080 / 553-8274

Manolito O. OlegarioDepartment Manager III / Davao CityPryce Tower CondominiumPryce Business Park, Bajada, Davao CityTel. No. (082) 221-8042

Noli D. ArmadaDepartment Manager III / Cotabato Branch6/F CotabatoYu Ekey Marketing BuildingDon Rufino Alonzo St., Cotabato CityTel. No. (064) 421-3120

CORPORATE HEADQUARTERS: The Atrium of Makati, Makati Ave., Makati City, Philippines

Call Center: n www.pagibigfund.gov.ph

Annual Report 2008 - Pag-IBIG Fund

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Transcript of Annual Report 2008 - Pag-IBIG Fund