BSP Q1 profit jumps 34% to P13.1 billion
Lawrence Agcaoili (The Philippine Star) - June 17, 2019 - 12:00am

MANILA, Philippines — Earnings of the Bangko Sentral ng Pilipinas (BSP) jumped 34 percent to P13.13 billion in the first quarter of the year from P9.81 billion in the same quarter last year amid higher revenues.

“Net income was primarily the result of higher interest income from reserves and domestic securities along with gain on foreign exchange forward transactions,” the BSP said in the First Quarter 2019 report on economic and financial developments.

The central bank’s total revenues, mostly comprised of interest income on foreign investments, government securities and treasury bonds, jumped by 77 percent to P26.4 billion from P14.92 billion.

Its total expenditures surged by 56 percent to P18.95 billion in the first quarter of the year from P12.14 billion in the same quarter last year.

Gains on foreign exchange fluctuations and interest expense surged by 169 percent to P7.42 billion from P2.77 billion. The gains were realized from servicing of matured foreign exchange obligations as well as the maturity of derivatives instruments.

This also represents realized gains arising from foreign currency-denominated transactions of the BSP, including rollover or re-investments of matured foreign exchange investments with foreign financial institutions and foreign exchange -denominated government securities.

The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and exchanged or settled foreign exchange assets and liabilities. Its participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate.

On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, it also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.

The BSP booked an all-time high net income of P39.8 billion last year, 69 percent higher than the P23.5 billion recorded in 2017. It gained P53.1 billion from foreign exchange fluctuations.

BANGKO SENTRAL NG PILIPINAS FOREIGN EXCHANGE
Philstar
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with