BSP net profit up 143% to 53 billion pesos for 8 months – Manila Bulletin

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BSP net income up 143%

to 53 billion pesos for 8 months

The Bangko Sentral ng Pilipinas (BSP) reported preliminary, unaudited net profit of 52.95 billion pesos at the end of August, up 143.22% from the same period last year of 21.77 billion pesos.

Bangko Sentral in the Philippines

The continued increase in BSP revenues is due to increased interest and miscellaneous income from its trading gains, fees, penalties and other operating income.

In the first eight months, the central bank’s income increased 69.1% to 120.98 billion pesos from 71.56 billion pesos in the same period in 2020. It recorded more interest income high of 77.25 billion pesos from foreign investment and domestic securities, up 42.44 percent from P54.23 billion last year. Miscellaneous income of 43.74 billion pesos also increased 152.25% from 17.34 billion pesos in 2020.

Total spending, meanwhile, rose 53 percent to 71.47 billion pesos from 46.70 billion pesos. Interest expense reached 39.77 billion pesos, up 37.47% from 28.93 billion pesos in the same period in 2020, while other expenses increased by 78.39% at 31.70 billion pesos against 17.77 billion pesos. BSP expenses include the production of banknotes and the cost of minting coins, as well as taxes and license fees.

The BSP also reported a net foreign exchange (FX) gain of 3.43 billion pesos during the period, reversing a net loss of 2.94 billion pesos during the same period last year.

At the end of August, the central bank’s total assets stood at 7.941 trillion pesos, 17.5 percent more than in the same period last year (6.790 trillion pesos). pesos). BSP’s assets consist of international reserves and income from its investments abroad.

Liabilities also increased 18 percent to 7,778 billion pesos from 6,589 billion pesos. BSP’s commitments are mainly deposits and currency issues.

BSP’s net worth fell to 163.16 billion pesos at the end of August from 171.31 billion pesos in the same period in 2020.

The capital of the BSP remains at 50 billion pesos. Its amended Law or Republic Law 11211 (“An Law Amending the Law of the Republic No 7653, otherwise known as the ‘New Law on the Central Bank’, and for Other Purposes’) increased the capitalization of the BSP at 200 billion pesos against 50 billion pesos. This will be financed only by declared dividends from the central bank.

In March 2020 and August of this year, the BSP paid a total of 36 billion pesos to the government in the form of dividends despite the fact that under its charter it is no longer mandated to pay dividends to the government. Duterte administration. These funds provide additional funding for pandemic control programs.


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