BSP’s net income up 143% at P53 billion for 8 months

Published October 22, 2021, 4:37 PM

by Lee C. Chipongian

BSP’s net income up 143%

at P53 billion for 8 months

The Bangko Sentral ng Pilipinas (BSP) reported a preliminary and unaudited net income of P52.95 billion as of end-August, up by 143.22 percent compared to same period last year of P21.77 billion.

Bangko Sentral ng Pilipinas

The continued increase in the BSP income was due to higher interest and miscellaneous income from its trading gains, fees, penalties and other operating income.

For the first eight months, central bank revenues went up by 69.1 percent to P120.98 billion versus P71.56 billion same time in 2020. It booked a higher interest income of P77.25 billion from foreign investments and domestic securities, up by 42.44 percent from P54.23 billion last year. Miscellaneous income of P43.74 billion was also higher by 152.25 percent from P17.34 billion in 2020.

Total expenditures, in the meantime, increased by 53 percent to P71.47 billion from P46.70 billion. Interest expenses reached P39.77 billion, up by 37.47 percent from P28.93 billion same period in 2020, while other expenses increased by 78.39 percent to P31.70 billion from P17.77 billion. BSP expenses include banknotes production and coin minting cost, as well as taxes and licenses fees.

The BSP also reported a net foreign exchange (FX) gain of P3.43 billion during the period, reversing a P2.94 billion net FX loss in the same period last year.

As of end-August, the central bank’s total assets amounted to P7.941 trillion, which was 17.5 percent higher than same time last year of P6.790 trillion. BSP assets are comprised of international reserves and income from its investments abroad.

Liabilities also increased by 18 percent to P7.778 trillion from P6.589 trillion. BSP liabilities are mostly deposits and currency issues.

The BSP’s net worth dropped to P163.16 billion end-August versus P171.31 billion same time in 2020.

The BSP’s capital remains at P50 billion. Its amended law or Republic Act 11211 (“An Act Amending Republic Act No. 7653, Otherwise Known as the ‘New Central Bank Act’, and for Other Purposes”) increased the BSP’s capitalization to P200 billion from P50 billion. This will be funded solely from the declared dividends of the central bank.

In March 2020 and in August this year, the BSP remitted a combined P36 billion to the government as dividends despite that under its charter, it is not longer mandated to remit dividends to the Duterte administration. These funds are additional funding for anti-pandemic programs.

 
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