BSP net income down 75% end Oct. 2023
The Bangko Sentral ng Pilipinas (BSP) posted a net income of P21.59 billion for the first 10 months of 2023, down by 75.44 percent compared to same period in 2022 of P87.92 billion due to the contraction of miscellaneous income and also from higher expenses.
The BSP, one of the mandated seed money contributors to the Maharlika Investment Corp. (MIC), increased its revenues by 24.9 percent to P145.1 billion as of end-october from P116.12 billion in 2022.
BSP revenues came from its interest income from international reserves and domestic securities. Interest income increased by 29.79 percent to P162.98 billion from P125.57 billion.
On the other hand, miscellaneous income continued to contract to P17.89 billion, versus a P9.44 billion decline last year.
Meanwhile, total expenditures increased by 65.9 percent to P174.48 billion as of end-october from P105.17 billion same time in 2022. The BSP pay high costs for its banknotes production and coin minting cost, as well as taxes and licenses fees, and from its open market operations.
During the period, interest expenses rose by 119.19 percent to P138.77 billion from P63.31 billion. Other expenses however fell by 14.71 percent to P35.71 billion versus P41.87 billion same time in 2022.
Based on BSP data as of end-october, its foreign exchange or FX gains dropped to P51 billion, or down by 33.75 percent from 2022’s P76.99 billion. FX gains are realized gains from fluctuations in FX rates arising from BSP’S foreign currency-denominated transactions.
The BSP also reported that total assets for the January to October period grew by 2.3 percent to P7.483 trillion from P7.314 trillion in 2022.
Total liabilities likewise rose 1.9 percent to P7.363 trillion from P7.228 trillion. (Lee C. Chipongian)