BSP net income down in Jan-Aug

THE Bangko Sentral ng Pilipinas ( BSP) reported that its net profit shrank by double digits in the first eight months of the year. The central bank’s unaudited financial statements showed that it netted P21.77 billion during the period, a 35.03-percent decline from P33.51 billion a year earlier.

Revenues fell by 16.98 percent to P71.56 billion in JanuaryAugust 2020 from P86.20 billion a year ago.

The BSP’s interest income decreased to P54.23 billion during the period, 22.90-percent down from the P70.34 billion posted a year earlier.

It posted P17.34 billion miscellaneous earnings in the eight months to August this year, accelerating by 9.33-percent from the P15.86-billion income a year ago.

The BSP said its miscellaneous income “includes trading gains/ losses, fees, penalties and other operating income, among others.”

Meanwhile, its expenses picked up by 15.04 percent to P46.70 billion during the period from P54.97 billion a year earlier.

Its interest expenses eased by 2.85 percent to P28.93 billion from P29.78 billion a year ago. Other expenses dropped by 29.45 percent to P17.77 billion in January to August this year from P25.19 billion during the same period in 2019.

The BSP’s income tax benefit during the eight- month period dived by 98.4 percent to P140 million from P8.75 billion a year ago.

It recorded a P2.94 billion net loss from foreign exchange (FX) fluctuation during the period, a reversal of the P11.03 net gain a year earlier.

“This represents realized gains or losses from fluctuations in FX rates arising from foreign currencydenominated transactions of the BSP,“the Bangko Sentral said.

Last year, the BSP registered a net profit of P47.10 billion, an 18.19-percent rise from P39.85 billion in 2018.