BSP income slips to P8.87B in 1st 8 months

THE BANGKO Sentral ng Pilipinas (BSP) remained in the black as of end-August, although net profit slipped from a year ago on the back of lower fee-based incomes.

The central bank reported an P8.87-billion net income for the first eight months, although 14.7% lower than the P10.4 billion booked during the same period in 2016, latest data showed.

Gross revenues totaled P42.79 billion, down by 17% from the P51.58 billion which the central bank collected as of August 2016. Interest income surged by a fifth to P37.35 billion, coming from P31.22 billion a year ago.

However, miscellaneous income plummeted to P5.44 billion, dropping by 73.3% from the P20.36 billion derived from fees and penalties collected by the regulator.

Higher foreign exchange gains kept the BSP in the black so far this year as it booked P11.87 billion from currency trading, more than double the P4.82 billion it made the previous year.

As the country’s monetary authority, the central bank sometimes intervenes during the daily trading sessions to temper any sharp swings that may cause a sudden appreciation or depreciation of the peso.

BSP officials have said that a weaker peso actually meant gains for the central bank, as the BSP has a lot of its investments in dollars.

August saw the peso hit 11- year lows and peaked at P51.49 versus the dollar on Aug. 18.

On the other hand, operating expenses stood steady at P45.75 billion, even posting a minimal decline from the P46 billion which the central bank spent a year prior.

The BSP wants to put up its own reserves to cushion foreign currency fluctuations under its proposal to update

Republic Act 7653 or the New Central Bank Act, which is currently pending in Congress.

The peso has depreciated versus the dollar so far this year, as it is now trading at the P51 level amid negative market sentiment despite the strong fundamentals of the Philippine economy.

BSP Governor Nestor A. Espenilla, Jr. has said that the central bank has allowed a “modest and gradual” depreciation of the currency to boost the prices of Philippine export goods and services and mitigate a potential overheat for the economy.

The central bank remains on track with sustaining profitable operations. The BSP ended with a P17.81-billion bottom line in 2016, ending five straight years of a net loss. —