.:: Homecredit | Message from the President

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.:: President's Message

As a result of the global financial slowdown, the country’s Gross Domestic Product grew by less than 1% in 2009, due largely to inward remittances from Overseas FilipinoWorkers, which reached US$17.3 B, representing a 5.5% increase over the previous year. The contraction in Exports by 14.2%, was somehow negated by the expansion in Government Consumption of 8.5% and Public Construction of 15.7%, basically because of the government stimulus package. As if the global slowdown was not enough, the Philippine economy reeled from the effects of Ondoy and Pepeng which caused inflation to average at 3.2% for the year. Notwithstanding the business slowdown, HomeCredit turned in a creditable performance with Gross Revenues reaching P46.1 Million, slightly better than the P45.6 Million recorded the previous year. With Expenses basically remaining flat, Net Income stood at P2.96 Million, almost the same as the P3.0 Million of 2008.

Homecredit's President
Ronnie B. Alcantara
(HCMBLA President)

In terms of Business Development, a total employee base of 20,676 was generated from BPO and other companies, of which, 2,504 new members signed up. From this new source of service fee revenue and from early terminations and defaults in payment of installment shares, HomeCredit was able to book Service Fees of P15.1 Million, which represented a 45% improvement over previous year. Accredited companies for the year include, among others, Maynilad Water, Vasbuilt Group, Trinity Insurance, Mariwasa Siam, and from the BPO sector: APAC, Genpact, Stellar Global and Pilipinas Teleserv. Total Assets of HomeCredit stood at P214 Million, representing a decline of P10 Million or 4.5%. This was due mainly to settlements of the Association’s payables and accrued charges amounting to P10.7 Million. During the year, HomeCredit was able to reclassify back as Equity (from Liability) P45.5 Million of Preferred Capital Contributions. Consequently, the Association’s Equity stood at P118 Million from P72Million of prior year. We shall continue to reclassify the remaining P56.9 Million back into Members’ Equity position. The number of Investment Properties was 55 (13 of which are lots only) as of end of 2009, as follows:

Area	Count
*Laguna	24
Cavite	11
Batangas	2
Pampanga	1
Las Pinas	4
Quezon City	1
Antipolo	9
Cebu	3
Total:	55
*13 are lots only

For the lots, we had a number of discussions with five property developers, to construct housing units on said lots, and sell or mortgage these as house and lot units. Target yield on cost is about 26% per unit over a 4-5 months timeframe.

HomeCredit remains financially healthy with a cash position of P32.5 Million, that is intended to be deployed for the house construction project and for the members’ financial needs. The Association shall continue to offer superior fund build-up mechanism products toward home acquisition. It is committed to render excellent service to all its members and other stakeholders, and to manage its members’ contributions and business partners’ investments prudently, professionally and profitably.

In closing, we would like to thank the Board of Directors, especially our Chairman, Mr. Vicente R. Ayllon, for his unwavering support; the Management and staff of the company, for their continuing commitment: and our members, for their trust and confidence in entrusting their hard-earned funds to HomeCredit.

Thank you very much.

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