BSP posts 7-month profit of P11B

The Bangko Sentral ng Pilipinas (BSP) posted a net income of P10.95 billion during the first seven months on the back of higher revenues, reversing the P3.55-billion net loss it posted as of end-July last year, as revenues rose while expenses were trimmed.

From January to July this year, the BSP’s revenues jumped 28.7 percent to P45.02 billion from P34.97 billion a year ago. The end-July revenue growth was also faster than the 25.7-percent year-on-year increase posted in the same period last year.

Interest income rose to P27.06 billion from P21.47 billion in 2015 while miscellaneous income amounted P17.96 billion, up from P13.51 billion a year ago.

End-July expenses slid 2.7 percent to P40.57 billion from P41.69 billion in the first seven months of 2015, during which expenses rose 7.5 percent year-on-year.

Interest expenses declined to P26.17 billion from P28.31 billion a year ago, although other expenses increased to P14.4 billion compared with P13.38 billion last year.

End-July net income before gains in foreign exchange rate fluctuations reached P4.45 billion, reversing the P6.72-billion loss a year ago.

Gains on foreign exchange fluctuations grew to P6.5 billion from P3.17 billion during the first seven months of 2015. The BSP explained that this amount represented “realized gains or losses from fluctuations in (foreign exchange) rates arising from foreign currency-denominated transactions of the BSP, including rollover/reinvestments of matured (foreign exchange) investments with foreign financial institutions and foreign exchange-denominated government securities; servicing of matured foreign obligations of the BSP, and maturity of derivatives instruments.” Ben O. de Vera