BSP posts P15.3-B net income in October

MANILA- Higher revenues along with the drop in expenses boosted the Bangko Sentral ng Pilipinas’ (BSP) net income to P15.26 billion as of October 2016.

Central bank data show that its revenues in the first 10 months this year amounted to P62.33 billion, 30.2 percent up than year-ago’s P47.87 billion.

Part of this, is half of the P1 billion supervisory action slapped against Rizal Commercial Banking Corporation (RCBC) paid last August in connection to the Bangladesh Bank cyber heist last February.

Expenses, on the other hand, declined by 2.3 percent to P58.49 billion against year-ago’s P59.90 billion.

Among the central bank’s expenses are loses from foreign exchange operations since the BSP joined the foreign exchange market to address extreme volatilities in the exchange rate.

The peso started the year at 47-level but is currently trading at the 49-level to a US dollar due to developments surrounding the Federal Reserve rates, which was hiked by 25 basis points to 0.5- percent and 0.75 percent in the middle of this month, among others.

On Tuesday alone, the peso touched the 50-level but ended the day at 49.99 from the previous session’s 49.96 finish.

BSP Deputy Governor Diwa Guinigundo said the exchange rate is normally the BSP’s first line of defense in adjusting to new shocks on the currency and the economy.