Volatile markets drag BSP to P2.1-B loss in H1

The Bangko Sentral ng Pilipinas ( BSP) incurred a net loss of P2.14 billion in the first half amid the volatility of the foreign exchange markets.

The net loss in the first half of the year was a complete reversal of the P615 million earnings in the same period last year.

Revenues of the central bank jumped 33.6 percent to P31.82 billion from January to June compared to P23.48 billion, while expenses went up 15.2 percent to P35.85 billion from P31.11 billion.

The BSP attributed the higher expenses to higher interest expense on national government deposits and other expenses.

During the period, the BSP reported the net gain from foreign exchange fluctuations plunged 72 percent to P2.32 billion in the first half from P8.24 billion in the same period last year.

The peso shed 37 centavos close at 45.09 to $ 1 last June 30 from 44.72 to $ 1 in end December.

As part of its mandate, the BSP smoothens the volatility in the foreign exchange market and uses its resources to buy and sell dollars in the open market.

The BSP has been booking heavy losses over the past five years. Last year, it managed to trim its net loss to P11.31 billion from P25.05 billion in 2013.

Based on the preliminary and unaudited statement of financial condition, total assets of BSP inched up 1.1 percent to P4.18 trillion in end June from P4.03 trillion in the same period last year due largely to the higher level of international reserves account.

“The uptick is attributed to the increase in the level of reserves along with the mild depreciation of the Philippine peso against the US dollar,” the BSP said.

The BSP’s liabilities climbed 4.3 percent to P4.14 trillion from P3.97 trillion as deposits particularly from the Bureau of Treasury outpaced the growth of circulated currencies.

Total deposits increased P52.8 billion to P2.94 trillion notwithstanding the 4.2 percent decrease in special deposit accounts ( SDAs) in the second quarter.

On the other hand, issued currencies declined by 1.4 percent to P798.6 billion from P809.7 billion.

Consequently, the BSP’s net worth declined to P43.2 billion in end June this year from P54.7 billion in end June last year.