BSP earnings drop 5.7% to P40.2 billion in 11 months

MANILA, Philippines — Earnings of the  Bangko Sentral ng Pilipinas (BSP) continued to drop in the first 11 months of 2019 amid higher operating expenses and lower gains from foreign exchange transactions.

Net income of the BSP amounted to P40.24 billion from January to November 2019, 5.74 percent lower than the P42.69 billion in the same period in 2018.

Revenues — mostly comprised of interest income on foreign investments, government securities and treasury bonds — jumped by almost two times to P113.43 billion from P61.35 billion a year ago.

Interest income, in particular, grew by nearly 34 percent to P93.19 billion from P69.56 billion, while miscellaneous income — which include trading gains or losses, fees, penalties and other operating income — recorded a gain of P20.25 billion from a loss of P8.21 billion.

On the other hand, the BSP’s operating expenses increased by 33 percent to P75.49 billion in the first 11-month of 2019 from P56.28 billion in the same 11-month period in 2018.

Further broken down, interest expenses jumped by 58 percent to P41 billion from P26 billion.

Net gains from foreign exchange rate fluctuations as of end-November slumped by 73 percent to P14.46 billion compared to the end-November 2018 level of P52.76 billion. The gains were realized from servicing of matured foreign exchange obligations as well as the maturity of derivative 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.

The BSP has allowed the peso to stabilize and has recovered back to the 50 to $1 level after emerging as the third worst performing currency last year, shedding over five percent to close at 52.58 to $1.

BSP earnings drop 5.7% to P40.2 billion in 11 months

MARY GRACE PADIN

MANILA, Philippines — Earnings of the  Bangko Sentral ng Pilipinas (BSP) continued to drop in the first 11 months of 2019 amid higher operating expenses and lower gains from foreign exchange transactions.

Net income of the BSP amounted to P40.24 billion from January to November 2019, 5.74 percent lower than the P42.69 billion in the same period in 2018.

Revenues — mostly comprised of interest income on foreign investments, government securities and treasury bonds — jumped by almost two times to P113.43 billion from P61.35 billion a year ago.

Interest income, in particular, grew by nearly 34 percent to P93.19 billion from P69.56 billion, while miscellaneous income — which include trading gains or losses, fees, penalties and other operating income — recorded a gain of P20.25 billion from a loss of P8.21 billion.

On the other hand, the BSP’s operating expenses increased by 33 percent to P75.49 billion in the first 11-month of 2019 from P56.28 billion in the same 11-month period in 2018.

Further broken down, interest expenses jumped by 58 percent to P41 billion from P26 billion.

Net gains from foreign exchange rate fluctuations as of end-November slumped by 73 percent to P14.46 billion compared to the end-November 2018 level of P52.76 billion. The gains were realized from servicing of matured foreign exchange obligations as well as the maturity of derivative 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.

The BSP has allowed the peso to stabilize and has recovered back to the 50 to $1 level after emerging as the third worst performing currency last year, shedding over five percent to close at 52.58 to $1.