BSP net income surges in first 8 months to 126.93 B

The central bank’s net income continued to rise to 126.93 billion in the first eight months of the year on higher interest income and gains from foreign exchange (FX) rate fluctuations.

The end-August net income is 203.6 percent more than same time last year of 18.87 billion, according to Bangko Sentral ng Pilipinas’ (BSP) latest statement of income and expense.

Total realized gains from FX rate fluctuations was up at $26.20 billion compared to end-August 2017’s $11.87 billion. These come from BSP’s foreign currencydenominated transactions such as: rollover/re-investments of matured FX investments with foreign financial institutions and FX-denominated government securities; servicing of matured FX obligations of the BSP; and maturity of derivatives instruments.

Revenues were up 13.8 percent year-on-year to 148.69 billion as of end-August mainly due to the increase in interest income on international reserves and domestic securities.

Expenses continue to decline by 13.6 percent year-on-year to 139.52 billion due to lower interest expenses of 118.37 billion during the period, as well as lower taxes and licenses.

BSP data showed that total assets as of end-August amounted to 1 4.75 trillion, the same amount a year ago. Central bank assets are mostly international reserves.

In a report, the BSP total assets – in its peso equivalent – have been reporting small increases due to the combined effect of the gradual peso depreciation against the US dollar.

The same report said the increase in deposits with foreign banks and revaluation adjustments in the gold holdings of the BSP resulting from the increase in the price of gold in the international market, was also a factor in total assets movement.

Total liabilities which are deposits and currency issues, in the meantime, stood at 14.64 trillion, slightly lower from same time in 2017 of 1 4.68 trillion. These were supported by higher placements in reserve deposits of other depository corporations, said the BSP.

The BSP’s net worth was at 1104.27 billion as of end-August, more than last year’s 168.8 billion.

Among government financial institutions, the BSP remits the highest dividend amount to the National Government, or 75 percent of its net income. Other GFIs only remit 50 percent of its net income.

Last year, the BSP reported 1 22.85 billion-worth of net income, up from 117.81 billion in 2016.