BSP earnings jump 24% to P33 billion
Lawrence Agcaoili (The Philippine Star) - October 17, 2019 - 12:00am

MANILA, Philippines — Earnings of the Bangko Sentral ng Pilipinas (BSP) jumped by nearly 25 percent to P33.51 billion in the first eight months from P26.93 billion in the same period last year as higher interest income boosted revenues.

Data released by the central bank showed total revenues mostly comprised of interest income on foreign investments, government securities and treasury bonds zoomed by 77 percent to P86.2 billion from January to August, compared to P48.69 billion in the same period last year.

Interest income went up by 43 percent to P70.34 billion from P49.28 billion, while miscellaneous income including trading gains or losses, fees, penalties and other operating income, among others amounted to P15.86 billion or more than 27 times last year’s P590 million.

On the other hand, total expenditures increased by 39.1 percent to P54.97 billion from January to August compared to P39.52 billion in the same period last year.

This as interest expense surged by 171 percent to P29.78 billion from P18.37 billion.

Gains on foreign exchange fluctuations plunged by almost 58 percent to P11.03 billion from P18.37 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. It participates 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.

Likewise, the BSP settled P8.75 billion in income tax in the first eight months of the year, 3.7 percent higher than last year’s P8.44 billion.

BSP
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