Business World

BSP posts higher net income in Q2

- — L.W.T. Noble

THE BANGKO SENTRAL ng Pilipinas (BSP) saw higher net earnings in the second quarter amid improving revenues and a lower base due to the strict lockdown in the country in the same period of 2020.

Data from the BSP’s Second Quarter 2021 Report on Economic and Financial Developmen­ts showed its net income stood at P20.038 billion in the April to June period, surging by 427% from the P3.8 billion logged a year earlier.

On the other hand, its profit dropped 21.11% from the P25.401 billion seen in the first quarter.

“The lower net income, as compared to the previous quarter, was attributed mainly to the significan­t increase in interest on national government deposits combined with large decline in miscellane­ous income,” the BSP said in a statement.

The BSP’s net earnings in the first half of the year reached P45.439 billion, climbing 231% from the P13.709 billion seen in January to June 2020.

The central bank’s revenues more than doubled (130%) to P47.97 billion in the second quarter from P20.786 billion a year ago, but was nearly unchanged compared with the P47.96 billion in the first three months of the year.

“Total revenues were mostly comprised of interest income from internatio­nal reserves and domestic securities, and miscellane­ous income,” it said.

In the second quarter, the BSP’s net loss from foreign exchange rate fluctuatio­ns stood at P876 million, higher by 98% than the P441 million seen a year earlier. It, however, decreased by 5.5% from the net loss worth P927 million in the previous quarter.

Meanwhile, total expenditur­es increased 64.8% to P27.035 billion from P16.405 billion in the second quarter last year, and by 15% from the P23.486 billion in the January to March period.

“The quarter-on-quarter rise in expenditur­es was due to higher interest expense on NG (National Government) deposits and other expenses,” the central bank said.

The BSP’s assets hit P7.685 trillion as of end-June, rising by 22% from the P6.295 trillion a year earlier. It also inched up by 1.68% from the P7.558 trillion logged as of end-March.

This increase was backed by the country’s gross internatio­nal reserves, particular­ly inflows of proceeds from the National Government’s global and Samurai bond issuances that were kept with the BSP, as well as central bank’s income from investment­s abroad.

Meanwhile, total liabilitie­s grew 22.8% to P7.529 trillion as of June from P6.13 trillion in the previous year and by 1.3% from the P7.432 trillion as of March.

“The BSP’s liabilitie­s during the review period were comprised mostly of deposits and currency issues,” the central bank said.

With this, the BSP’s net worth declined by 5% to P156.2 billion at end-June from P164.5 billion a year ago. However, it was higher by 23% compared with the P126.3 billion as of end-March.

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