BSP profits jump 32% in 2021
By LEE C. CHIPONGIAN
The Bangko Sentral ng Pilipinas (BSP) posted a net income of P42.11 billion in 2021, up by 32.8 percent from P31.71 billion in 2020, based on its unaudited financial statement.
Higher interest and miscellaneous income from BSP’s trading gains, fees, penalties and other operating income have increased its profits last year.
However, the BSP incurred a net loss of P16.31 billion in the last quarter of 2021, compared to positive incomes in the third quarter of P12.98 billion, P20.04 billion in the second quarter and P25.40 billion in the first quarter.
“The net loss was attributed mainly to the significant decline in interest income combined with the upswing in currency printing/minting costs, taxes and licenses, and other expenses,” according to the BSP.
As of end-December 2021, the BSP has a net foreign exchange gain of P30.97 billion, lower compared to 2020’s P37.57 billion.
BSP revenues, meantime, amounted to P166.98 billion last year, it’s up by 41.33 percent year-on-year from P118.15 billion. Total revenues were mostly comprised of interest income from international reserves and domestic securities, and miscellaneous income.
Interest income totalled P115.43 billion last year, 35.11 percent from P85.43 billion in 2020 while miscellaneous income rose by 56.52 percent to P50.98 billion from P32.57 billion.
Last year, the central bank spent P136 billion which was 68.77 percent more than the previous year’s expenses of P80.58 billion. Expenses include banknotes production and coin minting cost, as well as taxes and licenses fees.
The BSP’s interest expenses reached P60.34 billion, up from 29.95 percent from P46.43 billion while other expenses increased to P59.54 billion from P23.46 billion or an increase of 153.79 percent.
The BSP’s total assets in 2021 stood at P7.57 trillion which was seven percent higher compared to 2020’s P7.07 trillion while total liabilities was at P7.44 trillion, up by 7.82 percent versus P6.90 trillion.
Central bank assets are comprised of international reserves and income from its investments abroad. The BSP said its financial condition remains strong with international reserves comprising the bulk of the central bank’s total assets, which amounted to P5.50 trillion as of end-December.
At the end of 2021, the BSP has a net worth of P136 billion but it was 20.5 percent lower compared to 2020’s P171 billion. It also posted a lower surplus or reserves of P86.1 billion which down by 28.84 percent from what was reported in 2020 of P121 billion.
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.