THE Bangko Sentral ng Pilipinas (BSP) had a net income of P29.88 billion in the first six months of 2019, almost unchanged from same time last year of P29.45 billion, partly due to modest foreign exchange (FX) rate gains.
The BSP registered FX rate gains – which are realized gains from FX rate fluctuations – of P9 billion end-June this year versus P21.51 billion same period in 2018.
Based on the BSP’s latest unaudited statement of income and expense, revenues were up significantly by 76.2 percent year-on-year to P65.32 billion from P37.08 billion, while expenses also increased by 42.3 percent to P41.43 billion from P29.12 billion.
Interest income from its international reserves and domestic securities, for the first six months, was up by 48.3 percent to P53.22 billion from P35.88 billion end-June 2018. Miscellaneous income which includes trading gains, fees, penalties and other operating income, increased to P12.10 billion from just P1.19 billion last year.
Interest expenses for the first six months also went up by 65 percent to P21.49 billion from P13.02 billion. Other expenses totaled P19.94 billion which was also higher by 23.85 percent from the previous year’s P16.10 billion.
As of end-June, the BSP’s assets reached P5.107 trillion, up 8.1 percent from P4.726 trillion same time in 2018. Total liabilities also rose by 7.9 percent year-on-year to P4.963 trillion from P4.616 trillion.
Last year, the BSP reported a net income of P39.85 billion which was higher by 69.50 percent from P23.51 billion in 2017. Its FX rate gains was at P53.13 billion from only P15.48 billion in 2017.
The central bank’s 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”) has allowed the BSP to increase its capitalization by P150 billion, or from P50 billion to P200 billion. This will be funded solely from the declared dividends of the BSP.
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