President’s Annual Report 2021


JANUARY 16, 2021


To our esteemed Chairman and CEO, Members of the Board of Trustees, Management and fellow members of the Association,  good morning.

I am pleased to present today the 2020 annual report of our Association, PSSLAI,   Public Safety Savings and Loan Association, Inc.

Year 2020 was an unimaginable year that has brought a drastic impact in our lives and largely affected the economic viability of all businesses not only in our country but globally. The pandemic hindered activities  that are vital to us in the achievement of the goals we set for our Association. Moreover, four months of moratorium on loan payments as mandated by the Bayanihan Act 1 & 2 directly affected our usual capacity for higher financial growth, again, not only us but the whole business sector. However, due to our ability to adapt to the challenging environment very quickly and the unwavering perseverance of our Board of Trustees, Management and all employees in PSSLAI, our Association was able to  deliver the following achievements despite the pandemic and numerous challenges, to wit :

  1. Total Assets grew from Php 59.6 billion to Php 61.2 billion, an additional Php 1.6 billion or equivalent to 2.7% increase in assets;
  2. Net income of 771 million despite the moratorium on collection
  3. Our surplus free account grew from Php 8.8 billion to Php 9.6 billion (16% of Total Assets).
  4. Loan production for the year 2020 stood at over Php 27.4 billion which brought the loan portfolio to a total of Php 51.7 billion or 84% of the end-of-year total assets.
  5. Declaration of a 13% per annum Dividend rate which was approved by the Bangko Sentral ng Pilipinas on January 6, 2021,  WITHIN 24 HOURS from the time of our submission.

This means that our Association will be distributing dividends amounting to Php 3,804,097,717.16 amongst our members nationwide which started last Monday, January 11, 2021. Although it is lower than our previous dividend rates, it is still the highest rate given in the industry! This reflected the financial strength and soundness of PSSLAI,  an exemplary  achievement and a lead that we strive to maintain.

The Board of Trustees declares the annual dividend every first week of January and the rate is based on the financial performance of the Association. Financial documents are submitted to the BSP for approval of the dividend declaration and subsequent crediting of dividends to members’ accounts. For 2020, the BSP approved the dividend declaration within twenty-four (24) hours on the basis of the strong financial position of the Association, with strict compliance to adequate reserve requirements and sufficient net income generated.         

The Dividend is computed based on the member’s lowest Capital Contribution account balance per quarter covering the period of October 4, 2019 to October 5, 2020, subject to the Maximum Allowable Deposit based on the type of membership.    

Staying true to our mandate of providing quality service, easy access and convenience to our members, the following initiatives were also implemented in the year 2020:

  1. We have opened 5 new Satellite Offices located in Rizal, Surigao, Laoag, Silang and Caloocan cities thereby providing convenience and ease in transactions to members residing near and within these areas. Amidst the pandemic and its challenges, our Association was able to expand its network. From 32 Satellite Offices and 2 branches in 2019, we ended 2020 with 38 Satellite Offices, 1 Branch and 1 Corporate Office, still keeping our commitment to expand our offices in order to provide excellent services to our members nationwide.
  1.  Two new state-of-the-art buildings were constructed in Tagum and Olongapo which houses the PSSLAI offices in these areas. These buildings were specially designed and built according to PSSLAI standards, wherein our members will be more than comfortable while transacting with our well-trained personnel.
  1. Four major renovations were done on both owned and rented buildings namely: Puerto Princesa, Palo, Sentinel office and Calamba Warehouse. Current renovations that are ongoing are Cabanatuan, Roxas and 4 floors of our Head Office. The improvements in our facilities are implemented to further enhance the transacting experience of our members. Our facilities are constantly being checked and evaluated to ensure that our stringent standards are being followed.
  1. Two lot acquisitions, one in Laoag and one along EDSA.  We assure everyone that these will be utilized for the greater good of our members, as done with all others, i.e. to provide our members more access to our services.

Aside from these, the Association tirelessly implemented campaigns despite the handicap brought about by the pandemic. Always with the end in view for the member’s greater good, enhancements were made to our existing products such as Calamity Loan, Vehicle Loan, Real Estate Loan, and Pension Loan. We are particularly proud of the improvement in our Affodaloan wherein interest rates were lowered. We also found ways to decrease our insurance premiums and reduce the amount of service fees on our disbursement channels so that we can provide more loan proceeds to our dear borrowers especially during these difficult times. To provide more ease to our members’ transactions, PSSLAI has also partnered with prominent financial institutions such as RCBC and LBC Express that served as additional channels for the disbursement of fund transfers and loan proceeds.

Another  breakthrough that your Association has achieved for 2020 was the launching of our online facility, the first of its kind in the NSSLA industry, the PSSLAI Bilis Online.  Our PSSLAI Bilis Online is an internet-access facility that provides convenience to our transacting members, whenever and wherever.  Members can view their balances and perform fund transfer whenever they want. 

Further to fund transfer transactions capability of the PSSLAI Bilis Online facility, members can also use this facility to apply for their very own PSSLAI Visa Card.  Another milestone product and first-of-its-kind in the industry, the PSSLAI Visa Card is a prepaid card that members can use to pay for purchases made online or thru various point-of-sale (POS) terminals nationwide.  And since the PSSLAI Visa Card is powered by UnionBank and affiliated by VISA, members can withdraw their funds or use the card anywhere in the world.

PSSLAI also continuously created promotions and initiatives that generated enthusiasm and brought positivity to our members, one of which is the Libreng Cellphone Promo. This promo aims to reward loan borrowers by automatically giving one (1) Samsung A30s when they avail of a qualified loan product. To date, PSSLAI has already given more than 7,000 Samsung cellphone units to members nationwide. Aside from this, we have also offered a Calamity Loan to ease the members’ burden during the pandemic, Burial Assistance Program, Premium Back-to-Back Loan Promo and we have also distributed Jollibee GCs nationwide. The most exciting campaign was the Wipe-Out Loan Promo, wherein the lucky drawn members will have their outstanding loans paid-off. All of these marketing programs were widely accepted and patronized by the members. Advance congratulations to the members who will get the chance to have their outstanding loans wiped out later this morning.

In terms of Membership, the year 2020 also posed a positive growth for the Association as its membership base from our partner institutions PNP and BFP grew  from  249,498 to 256,085 translating to a growth of 2.6%.

We have always assured you, our dear members, that for our Association to achieve all of those enumerated, we continuously think of ways to improve our products and services. Because of this, we have created a new department, PDMCD or the Product Development and Marketing Communications Department which used to be a part of the Sales and Marketing Department or SMD.  This reorganization was made so that our new Sales Management Team will solely focus on sales strategies as well as on providing services to our transacting members while PDMCD will ensure that our products, initiative and campaigns are highly suitable and responsive to the needs of our  members. 

A significant part of PSSLAI is its CSR or Corporate Social Responsibility Program. We always ensure that we give back to our members and the institution that they work. A yearly allocation from our income is reserved for CSR. For 2020, a total of Php 114,355,839.04  were utilized for donations in the form of office equipment and cash sponsorships to various units and stations to aid our partners in the execution of their duties. Some of the special projects for our 2020 CSR are the following:

  1. Assistance for our members affected by the Taal Volcano eruption
  2. Cash assistance for borrowers affected by calamities
  3. 166,668 KN95 facemasks  distributed to Region 3 and PNP Logistics
  4. Ambulance for Region 4A
  5. 26 Grandias for PNP  
  6. BFP PAIS Project

We also partnered with the PNP Training Service (PNPTS) for long-term (5 years) Adopt a Classroom Project.

Aside from the special yearly projects and donations, we are doing the yearly scholarship program for qualified members at the Ateneo de Manila University Center for Family Ministries, inclusive of tuition fees, expenses for books, transportation and board and lodging.

Further, we are the official PNP Partner for the Rafael T. Crame Balangay Awards annually wherein a total of Six Million Pesos (6,000,000) is given to outstanding police units.

On the other hand, since the dawning of this Covid19 pandemic, the Association have also  focused in addressing the most pressing challenges posed by this pandemic with the key objectives centered on the health and safety as follows:

  1. Assist our employees who may need to miss work and ensure no one feels compelled to work if they feel ill,
  2. Adapt our operations to a stringent health and safety protocols to protect the health and well being of our employees as well as the members we serve, and 
  3. Work with our support services group to procure resources and technology platforms to transition our operations to adapting to the “new normal” ensuring continuity of our services to our members without interruption.

We are one with the world and our country in fervent prayer that the pandemic will be a thing of the past for this year. As such, we reached out to the IATF before 2020 ended for the participation of our Association in the Dose of Hope Project whereby we ordered 40,000 doses of the AstraZeneca vaccine. 50% of these vaccines will be donated to the government while the 50% will be for our use. The multilateral agreement was officially signed last January 8, 2021. Expected delivery is by the 3rd Quarter of this year. This will enable our Association to resume the usual activities in the delivery of services to our members. 

With this, I invite everyone to join us in facing 2021, as we work to bring about more success to OUR Association, PSSLAI! We will still continue with our expansion projects that will bring us closer and within reach to our members, upgrade our existing facilities for member’s comfort, continue innovation and enhancement of our products and services as well as our  technology platform to better service our Members.

I would like to take this opportunity to thank our Chairman and CEO, Atty. Lucas M. Managuelod, for taking the lead in bringing phenomenal growth to our Association. Your experiences sir, 34 years in service, recognitions such as an award as the Most Outstanding Sr Police Officer, and knowledge as a lawyer, a Fellow of the Institute of the Corporate Directors, an MBA, Master’s in Management and PhD of Philosophy in Criminology, were definitely instrumental in providing us the leadership that brought the Association to where it is now. In a short span of time and under your stewardship Sir, we are now recognized and considered by the BSP as an industry leader in terms of profitability, innovation and technological advancement. 

I offer my gratitude to the rest of the Board of Trustees, all of whom are Fellows in the Institute of Corporate Directors, 7 are Master’s Degree holders and two (2) are lawyers; to the Management and all employees for their dedication and unceasing efforts to deliver what is best for our members . We may all be different people, but we are one in taking to heart the desire to do what is best for our  Association, armed with our unique qualifications.

For the information also of our members, compensation of the Trustees is regulated by the BSP. As such, all increases in compensation, in any form, of all Trustees and Trustee-Officers in excess of 10% is subject to the approval of BSP.  This is regularly monitored by the management, compliance office, internal and external auditors, then validated by BSP during their conduct of Audit.

Of course, to you, our members who lend your trust and support to us, THANK YOU!!! It is this trust that serves as our inspiration to deliver what is best for all. You have our assurance that our efforts will not waver, all challenges will be faced, armed with your valuable trust and confidence!