BSP net income slips 7.24% in Q1

Published June 22, 2022, 8:10 PM

by Lee C. Chipongian

The Bangko Sentral ng Pilipinas (BSP) reported a lower net income of P23.56 billion as of end-March, down by 7.24 percent from same period last year of P25.40 billion.

Despite the decline, the BSP had a higher interest income from trading gains, fees, penalties and other operating income.

BSP building and logo/Reuters

Based on the BSP’s latest unaudited financial statement, its total revenues decreased by 13.2 percent to P41.62 billion versus P47.96 billion in 2021. Revenues came mostly from its interest income which are from international reserves and domestic securities, as well as miscellaneous income.

As of end-March, BSP’s interest income went up by 29.89 percent to P31.20 billion from P24.02 billion, while miscellaneous income dropped 56.47 percent to P10.42 billion from P23.94 billion last year.

Meantime, the central bank expenditures amounted to P24.16 billion in the first quarter, up by 2.85 percent from same period last year of P23.49 billion. Expenses include banknotes production and coin minting cost, as well as taxes and licenses fees.

Interest expenses hardly changed at P13.82 billion from P13.80 billion. Other expenses totaled P10.34 billion which was higher than same time last year of P9.69 billion.

The BSP has a net foreign exchange gain of P6.11 billion during the first quarter, it was higher from P930 million in 2021.

Data showed the BSP’s total assets as of end-March increased by 3.7 percent to P7.84 trillion versus P7.76 trillion last year, due to higher loans and advances which increased by 247 percent to P422 billion.

Its liabilities stood at P7.74 trillion which was 4.1 percent higher than P7.43 trillion in 2021. The liabilities increased because of the higher deposits from the Bureau of the Treasury, said the BSP.

The BSP has a current net worth of P98.5 billion. It was lower compared to same period last year of P126.29 billion same period in 2021 due to lower reserves.

The BSP’s surplus or reserves stood at P48.51 billion as of end-March from P76.29 billion last year.

According to the BSP, its financial condition “remains strong with international reserves comprising the bulk of the central bank’s total assets” of P5.53 trillion as of end-March versus P5.03 trillion in 2021.