BSP books P10.4-B profit in 8 months
The Bangko Sentral ng Pilipinas (BSP) booked profits in the first eight months of the year on the back of higher revenues, lower expenses as well as higher gains on its foreign exchange operations.
Data showed the net income of the central bank amounted to P10.4 billion from January to August this year, a complete reversal of the P1.78 billion losses booked in the same period last year.
The central bank’s revenues jumped 32.2 percent to P51.58 billion from P34.01 billion as interest earnings rose 26.5 percent to P32.2 billion from P24.67 billion, while miscellaneous income coming from trading gains from domestic and foreign currency securities surged 42 percent to P20.36 billion from P14.34 billion.
Expenses slipped 3.2 percent to P46 billion in the first eight months of the year from P47.52 billion in the same period last year. Interest expense on loans payable and other foreign currency deposits as well as cost of minting or printing of currencies declined 8.4 percent to P29.82 billion from P32.55 billion. Gains on foreign exchange fluctuations fell 28.4 percent to P4.82 billion from January to August this year from P6.73 billion booked in the same period last year.
The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and/or exchanged or settled foreign exchange assets and liabilities.
The primary objective of the BSP is to promote price and financial stability conducive to balanced and sustainable economic growth.
It also seeks to maintain monetary stability and the convertibility of the peso by performing a wide range of functions involving money, banking and credit in the performance of this mandate for stabilization.
The central bank is faced with the challenge of dealing with the consequences of strong foreign exchange inflows that have resulted in strengthening the peso against other currencies.
The BSP has been incurring heavy financial losses since 2010 in its efforts to temper currency fluctuations that could be destabilizing.