BSP earnings up 6-fold to P9.83 B

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) booked a six-fold increase in earnings in the first quarter on the back of higher revenue and lower interest expense.

In its first quarter 2018 Report on Economic and Financial Developments, the BSP said its net income amounted to P9.83 billion in the first quarter, almost six times the P1.66-billion profit recorded in the same quarter last year.

Data showed revenues rose 18.8 percent to P14.92 billion from January to March compared to P12.56 billon in the same period last year.

“The increase in revenue was brought mainly by the rise in interest income on international reserves and domestic securities by approximately P3.4 billion and P400 million, respectively,” the central bank said.

On the other hand, its expenses fell by more than 22 percent to P12.14 billion from P15.59 billion due mainly to lower interest expenses and taxes and licenses.

The BSP recorded a net income before gains on foreign exchange fluctuations, income tax expense, and capital reserves amounting to P2.77 billion in the first quarter, reversing the P3.03 billion net loss booked in the same quarter last year.

Gains on foreign exchange fluctuations surged by 47 percent to P7.04 billion in the first quarter from a year-ago level of P4.69 billion. The gains were realized from servicing of matured foreign exchange obligations as well as the maturity of derivatives instruments.

“Net income was primarily a result of interest income combined with realized P7 billion foreign exchange gains during the period,” it said.

This also represents realized gains arising from foreign currency-denominated transactions of the BSP, including rollover or re-investments of matured foreign exchange investments with foreign financial institutions and foreign exchange -denominated government securities.