BSP net income up 442%


Improvements in trading gains, fees and other operating income pulled the Bangko Sentral ng Pilipinas (BSP) net income higher by 442 percent in the first two months of the year to P24.62 billion versus P4.54 billion same time in 2020.

Based on its latest statement of income and expense, the BSP’s net income in February of P14.86 billion was higher than January’s P9.76 billion, up from P2.03 billion and P2.51 billion, respectively, in 2020.

BSP revenues in the January-February period amounted to P37.23 billion, 146.9 percent higher than same time last year of P15.08 billion. Interest income increased by 10 percent year-on-year to P14.62 billion while miscellaneous income from penalties and other operating income amounted to P22.60 billion, up by 1,155 percent year-on-year.

The central bank expenses were relatively steady at P13.11 billion, up 11.9 percent from P11.72 billion. Interest expenses increased by 13 percent to P8.40 billion from P7.43 billion. Other expenses totalled P4.71 billion from P4.29 billion last year.

In the first two months, the BSP’s net gain from foreign exchange (FX) rate fluctuations fell to P500 million, or 57.62 percent lower than P1.18 billion in 2020. There was however zero realized gains or losses from fluctuations in FX rates arising from foreign currency-denominated transactions of the BSP for the month of January this year. In contrast, P1 billion of FX net gains were recorded in January 2020.

The BSP’s total assets as of end-February went up by 48.8 percent year-on-year to P7.60 trillion with more domestic securities holdings. Total liabilities also increased by 50.3 percent year-on-year to P7.45 trillion with higher currency issues and deposits.

In the meantime, the BSP’s net worth stood at P148.97 billion as of end-February, down from January’s P180.95 billion. Surplus/reserves also fell to P98.97 billion from P130.95 billion in the previous month.

Last year, the BSP advanced its dividend payments to the National Government (NG) as COVID-19 response. It remitted P20 billion to the government despite that the BSP under the amended 2019 BSP Charter was no longer mandated to deposit dividends to the NG. The BSP’s net income in 2020 was P34.53 billion, lower than P46.24 billion in 2019.