MANILA - The Social Security System (SSS) suffered a huge drop in profits for the first 6 months of the year due to the lack of one-time gains from the sale of shares in the equities market.

SSS President Romulo Neri said in a briefing that SSS recorded a net income of P8.37 billion as of end-June, P8.38 billion lower than P16.75 billion recorded in the same period last year. Total revenues, on the other hand, dropped 10.7% to P47.5 billion from P53.2 billion.

The sharp decline in net income was driven mainly by the P9.11-billion non-recurring income from the sale of its 14.9% stake in Banco de Oro to SM Investments Corp. in the first half of 2008.

"Income from investments and other sources amounted to P11.18 billion and the value of SSS blue chip investments in marketable securities appreciated by P8.61 billion due to the run up in the stock market," he said.

Despite these, Neri said the agency exceeded its income and revenue targets in the first half by P2.32 billion and P1.5 billion, respectively.

Assets of the pension fund rose 9% to P254.06 billion from P233.12 billion as of end-December, while its reserve fund grew 8% to P255.6 billion from P242.53 billion, Neri said.

Contributions from January to June reached P36.3 billion, higher by P650 million compared to P35.65 billion in the same period last year.

"It is good for SSS contribution collections to consistently outpace disbursements for benefits. A surplus of contributions over benefits indicate a stable financial position for SSS and assured the fund's continuing viability," Neri said.