BSP reverses losses, posts P160-M profit in Q1
The Bangko Sentral ng Pilipinas (BSP) reversed losses from a year ago to post a net income of P160 million during the first quarter on foreign exchange gains.
At the end of the first three months, expenses dipped 3.6 percent to P16.7 billion from P17.3 billion last year, while revenue decreased at a faster 13.9 percent to P13.2 billion from P15.3 billion a year ago.
The BSP nonetheless booked P3.7 billion in net gain on forex fluctuations, a reversal of the P1.2-billion loss posted in the first quarter of last year.
The net gain represented realized gains in forex rates arising from foreign currency-denominated transactions of the BSP, including rollover/re-investments of matured forex investments with foreign financial institutions and forex-denominated government securities; servicing of matured forex obligations of the BSP; and maturity of derivatives instruments, the BSP explained.
In the first quarter, miscellaneous income dropped to P1.7 billion from P6.9 billion a year ago.
Interest income, meanwhile, increased to P11.5 billion from P8.5 billion last year.
Interest expenses slid to P11.6 billion in the first quarter from P12 billion a year ago, while other expenses were also lower at P5.1 billion from P5.3 billion last year.
In 2015, the BSP recorded a full-year net loss of P4.3 billion, narrower than the P10.1-billion loss in 2014.
The BSP has been posting year-on-year losses since 2010.
The bleeding peaked in 2012 when the BSP lost P95.4 billion, the biggest annual loss in the central bank’s history.
These losses were caused mainly by the buildup in the amount of cash stashed in SDAs, one of the main tools that the BSP uses to siphon cash from the economy.
The BSP’s main task is to protect consumers’ purchasing power by keeping prices stable.
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