BSP earns P63.9 billion in 10 months

MANILA, Philippines — The earnings of the Bangko Sentral ng Pilipinas (BSP) doubled to P63.86 billion from January to October   compared to a year-ago level of P31.15 billion on higher trading gains and operating income.

Data from the central bank showed total revenues, mostly comprised of interest income on foreign investments, government securities, and treasury bonds jumped by 47.2 percent to P142.05 billion during the 10-month period from P96.5 billion in the same period last year.

Miscellaneous income, including trading gains or losses, fees, penalties and other operating income, among others surged by 77.4 percent to P46.63 billion from P26.29 billion.

Likewise, interest income zoomed by 35.9 percent to P95.43 billion from P70.21 billion.

On the other hand, total expenses of the central bank went up by 47.4 percent to P88.55 billion from January to October   compared to P60.07 billion in the same period last year as interest expenses grew by 34.6 percent to P50.34billion from P37.39 billion.

During the 10-month period, the BSP booked a net gain of P10.39 billion from foreign exchange rate fluctuations, reversing the net loss of P5.14 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. Its participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate.

After emerging as one of the strongest currencies in the region, gaining more than five percent to close at 48.023 to $1 last year, the peso is now one of the worst performing currencies as it continues to flirt between the 50 to 51 per $1 level.

The local currency has been depreciating heavily since the hawkish tilt by the US Federal Reserve in June and as the country continues to struggle to contain the COVID-19 pandemic with the emergence of highly transmissible Delta variant.

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.