BSP posts 148-B net income at end of Q3

The Bangko Sentral ng Pilipinas (BSP) posted a net income of 148.33 billion as of end-October, up 290 percent from same time last year of 112.38 billion, based on its latest statement of income and expense.

The BSP’s foreign exchange (FX) rate gains, in the meantime, increased by 243.70 percent to 151.28 billion from end-October 2017’s 114.92 billion. These realized gains from FX rate fluctuations are from BSP’s foreign currency-denominated transactions such as: Rollover/reinvestments 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.

For the January-October period, the central bank’s revenues went up by 4.6 percent yearon-year to 155.79 billion from 153.35 billion. BSP revenues come from its interest income on international reserves and domestic securities which increased to 162.67 billion compared to same time lat year of 147.70 billion.

BSP expenses fell by 9.9 percent to 150.29 billion end-October from 155.82 billion.

During the period, the central bank had total assets of 14.624 trillion, down by 2.20 percent year-on-year or from 14.728 trillion.

The BSP’s assets are its international reserves which in October amounted to $74.71 billion. The reserves improved by November to $75.68 billion but based on the BSP’s latest external sector projection, it does not expect gross international reserves to hit an earlier estimate of $80 billion this year but will only amount to $74 billion in 2018 and $75 billion in 2019. These assets are affected by the peso depreciation against the US dollar, as well as revaluation adjustments in the gold holdings of the BSP.

As of end-October, the BSP has total liabilities of 14.499 billion, less by 3.40 percent than last year’s 14.657 trillion.

During the period, the BSP has a net worth of 1124.90 billion, up from 170.67 billion in 2017.

The BSP is mandated by law to remit 75 percent of their net income to the government while other state-owned corporations are only required to remit 50 percent of their net income.

Last year, the BSP’s net income totaled 122.85 billion, up from the previous year’s 117.81 billion. The 2017 FX gains reached 115.48 billion from 119.12 billion in 2016.

The BSP currently has a capitalization of 150 billion. It has taken the government 20 years for remit 140 billion of the 150-billion original capitalization stated in the 1993 BSP charter.