By Lee C. Chipongian
The central bank reported a lower net income of P13.27 billion in the first 11 months of 2017, about 30.45 percent down compared to the previous year’s P19 billion.
Based on the latest unaudited statement of income and expense, the Bangko Sentral ng Pilipinas (BSP) continues to post foreign exchange gains of P15.32 billion during the period, but lower by 13.29 percent from same time in 2016 of P17.67 billion. These realized gains come from fluctuations in foreign exchange rates arising from the BSP’s foreign currency-denominated transactions.
As of end-November, BSP revenues totaled P59 billion, down by 10.1 percent year-on-year or from R65.68 billion. These revenues are mainly sourced from its reserves and securities’ holdings.
Its interest income amounted to P53 billion from P42.57 billion in 2016 while miscellaneous income dropped to P5.99 billion from P23.11.
BSP data show its expenses decreased by 5.1 percent to P61 billion from P64.26 billion of the previous year. Interest expenses fell to P33.26 billion from P40.34 billion.
As of end-November, the central bank had total assets of R4.6 trillion and total liabilities of P4.53 trillion.
The BSP reported a net worth of P70.71 billion during the period, which was higher compared to 2016’s P61 billion. It also reported a capital/surplus of P20.71 billion.
With only P50 billion in capitalization, the BSP has had to implement prudent measures to keep from reporting losses such as in past years.
The BSP has proposed a capital of P150 billion in its charter amendment. With this capital, the BSP thinks its capacity to respond to monetary stability risks will improve greatly.
It took the BSP 20 years to fully receive the P50 billion capitalization from the government which initially remitted P10 billion when the 1993 central bank charter was approved into law.
The BSP has been lobbying for the amendment of its charter since the early 2000, however, several administrations have not placed proposed updates to the New Central Bank Act as a priority bill.