BSP nets P53 billion in 8 months

Lawrence Agcaoili - The Philippine Star

MANILA, Philippines — The net income of the Bangko Sentral ng Pilipinas (BSP) reached P52.95 billion from January to August, more than double the P21.77 billion earned in the same period last year on higher trading gains and operating income.

Data from the central bank showed that total revenues – mostly coming from interest income on foreign investments, government securities and Treasury bonds – jumped by 69 percent to P120.98 billion during the eight-month period from a year-ago level of P71.57 billion.

Miscellaneous income, including trading gains or losses, fees, penalties and other operating income, among others soared by 152 percent to P43.75 billion from P17.34 billion.

Likewise, interest income rose by nearly 43 percent to P77.25 billion during the eight-month period from P54.23 billion a year ago.

Total expenses of the central bank increased by 53 percent to P71.47 billion from January to August compared to P46.7 billion in the same period last year as interest expenses went up by 37.5 percent to P39.77 billion from P28.93 billion.

The BSP booked a net gain of P3.43 billion from January to August, reversing the net loss of P2.94 billion recorded in the same period last year

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 to temper the sharp fluctuations in the exchange rate.

The earnings of the BSP plunged by 25.3 percent to P31.71 billion last year from a record P45.81 billion in 2019 after it booked a P5.78 billion loss from foreign exchange rate fluctuations.

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