BSP logs over 145-B net income in 9 months

The Bangko Sentral ng Pilipinas (BSP) reported a net income of 145.23 billion as of end-September from only 19.97 billion same time last year, as currency movements translated to foreign exchange (FX) rate gains.

The BSP’s 353.66 percent year-onyear net income growth reflected its 148.80 billion gains from FX rate fluctuations which was up by 281.54 percent compared to the previous year. These realized gains from FX rate fluctuations are 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.

Based on the BSP’s first nine months’ statement of income and expense, its revenues had a modest increase of 3.1 percent to 149.63 billion from 148.15 billion same time last year.

BSP revenues come from its interest income on international reserves and domestic securities. As of endSeptember, interest income went up to 155.80 billion from 142.35 billion in 2017.

The independent institution’s expenses, in the meantime, fell by 12.1 percent to 144.77 billion from 150.93 billion in 2017 as BSP registered lower interest expenses of 120.90 billion versus same time last year of 128 billion.

The central bank also reported total assets – which are majority international reserves – of 14.65 trillion during the period. It was 0.68 percent lower from end-September 2017’s 14.75 trillion. This level is influenced by the peso depreciation against the US dollar, as well as revaluation adjustments in the gold holdings of the BSP.

As of end-September, the BSP has liabilities amounting to 14.52 trillion or down from 14.65 trillion in 2017.

The BSP’s net worth stood at 1122 billion in the first nine months from 168.54 billion last year, or up by 79 percent year-on-year.

Unlike other government financial institutions which remits 50 percent of their net income to the government, the BSP pays a higher dividend equivalent to 75 percent of its net income.

In 2017, the central bank reported 122.85 billion-worth of net income, up from the previous year’s 117.81 billion. FX gains last year amounted to 115.48 billion from 119.12 billion in 2016.