The Philippine Deposit Insurance Corp. (PDIC) saw its total assets fall by 18 percent to P278 billion in 2024 after remitting over P117 billion in funds and dividends to the national government under the General Appropriations Act (GAA).
In its 2024 Annual Report, the state deposit insurer said total assets declined by P61.6 billion from the previous year’s P339.6 billion.
‘The drop in net assets is primarily attributed to remittances to the Bureau of the Treasury aggregating P107.2 billion fund balance under the GAA and P10.7 billion dividends, P1.2 billion operating expenses and P300 million payment of insured deposits,’ the PDIC said.
PDIC president and CEO Roberto Tan said the remittance supports ‘the fiscal strengthening and consolidation initiative’ of the national government and helps fund its priority programs.
‘PDIC remitted a total of P10.7 billion in regular dividends to the national government in 2024. This is in support of the fiscal strengthening and consolidation initiative as well as to help fund various priority programs of the national government,’ Tan said in his report.
The decline in assets, however, was partly tempered by the inflow of fresh resources, including P38 billion in assessment collections, P17.3 billion in income from investments and P2.9 billion in income from financial assistance and other sources.
PDIC’s cash and investments also declined by 18.5 percent to P273.1 billion in 2024 from P335.1 billion a year ago, comprising 98.2 percent of the insurer’s total assets. Most are in government securities and money market placements.
Total investment portfolio is composed of P256 billion corporate funds and P12.1 billion earmarked funds for the loan obligations of the PDIC.
PDIC’s total deposit insurance fund (DIF), which is the deposit insurer’s capital, fell by 23.6 percent at P236.9 billion in 2024 from P310.1 billion in 2023.
The DIF includes a P3 billion permanent insurance fund provided by the national government, P226.1 billion reserves for insurance losses and P7.8 billion in retained earnings.
Despite the decline, the PDIC maintained a DIF to estimated insured deposits (EID) ratio of 7.83 percent, surpassing its 6.5-percent target and exceeding the international benchmark for deposit insurance adequacy.
‘This accomplishment underscores the PDIC’s commitment to maintaining a robust financial safety net for depositors,’ the report said.
The PDIC reported a total income of P58.2 billion in 2024, a 12-percent increase from P52.3 billion the previous year, driven largely by assessment collections from member banks and investment income.
Assessment income accounted for 65 percent of total revenues, while investment income contributed 30 percent.
Investment income rose by 7.3 percent to P17.3 billion, reflecting higher returns from government securities and placements. Assessment income also climbed by 8.5 percent to P38 billion due to the banking sector’s continued expansion.
The PDIC assured the public that despite the decline in assets, it remains financially sound and well positioned to protect depositors in case of bank closures.
‘As of 2024, the financial position of the corporation is stable and adequate to safeguard against the risks in the banking system and the interests of the depositing public,’ the PDIC reiterated.