BSP net income as of end-Sept jumps to a record P13.99B, reversal of loss in 2015

The Bangko Sentral ng Pilipinas (BSP) posted a record net income of P13.99 billion at the end of the first nine months as its revenues jumped by nearly a third while trimming expenses.

The latest data showed that the BSP reversed the P3-billion net loss at end-September last year.

From January to September, the BSP’s revenues grew 32.3 percent to P57.12 billion from P43.19 billion a year ago.

The end-September revenue growth was faster than the 19.4-percent year-on-year increase recorded in the same nine-month period last year.

Interest income increased to P34.7 billion from P28.42 billion in 2015, while miscellaneous income amounted P22.43 billion, up from P14.77 billion a year ago.

Meanwhile, end-September expenses slid 3.7 percent to P51.82 billion from P53.84 billion in the first nine months last year, during which expenses rose 6.5 percent year-on-year.

Interest expenses declined to P33.39 billion from P36.59 billion a year ago.

End-September net income before gains in foreign exchange rate fluctuations reached P5.3 billion, reversing the P10.65-billion loss a year ago.

Gains on foreign exchange rate fluctuations also rose to P8.7 billion from P7.65 billion during the first nine months of 2015.

The BSP explained that this amount represented “realized gains from fluctuations in foreign exchange rates arising from foreign currency-denominated transactions of the BSP, including: rollover/reinvestments of matured FX investments with foreign financial institutions and FX-denominated government securities; servicing of matured FX obligations of the BSP; and maturity of derivatives instruments.”

In 2015, the BSP posted a net loss of P3.9 billion, sustaining annual losses since 2010.

Last year’s net loss was nonetheless the smallest during the last six years, compared with 2010’s P59.04 billion, 2011’s P33.69 billion, 2012’s P95.38 billion, 2013’s P17.51 billion and 2014’s P10.11 billion. —BEN O. DE VERA