PDIC asset disposal up 25% in 2024

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) saw a significant rise in asset sales for 2024, earning P411.4 million from the disposal of 281 properties, reflecting the state insurer’s effective asset disposal strategies.

This is 24.7 percent higher than the P330 million generated in 2023. The total sales included assets acquired by the PDIC and those owned by closed banks.

Of the 281 properties, 71 were PDIC-acquired while closed banks owned the remaining 210.

Public biddings, which accounted for P194.9 million of the total sales, proved to be the more competitive route for asset liquidation. The rest, amounting to P216.4 million, were sold through negotiated sales.

The value of assets sold in 2024 exceeded the minimum bid price of P398.3 million by 3.3 percent, with the total sales surpassing expectations by P13.1 million.

“The funds or proceeds from these disposal transactions of the closed bank assets are held in trust by the PDIC and are used to settle claims of closed bank creditors, including depositors with uninsured deposits,” the state insurer said.

The sale proceeds of corporate assets will also be used to augment the Deposit Insurance Fund (DIF) to support future deposit insurance claims.

To further boost asset sales, the PDIC has been enhancing its disposal strategies. These include more innovative marketing methods, streamlining processes, and partnerships with organizations like the Home Development Mutual Fund.

The corporation also offers virtual property tours for potential buyers and a more efficient property search engine on its website to facilitate easier transactions.

“With these measures, the corporation aims to further increase asset sales, improve financial recoveries, and support the stability of the financial system by helping ensure funds are plowed back to the economy by way of investments and/or savings,” it said.

The PDIC was established in 1963 to protect depositors and help maintain stability in the financial system. It is an attached agency of the Philippine central bank and a member of the Financial Sector Forum as well as the Financial Stability Coordination Council.