Central bank sees higher net income on FX fees and gains

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BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) posted higher net profit in 2021, supported by improvements in its interest and fee income as well as gains from fluctuations in foreign exchange (FX) rates.

Data published on the BSP website showed that the central bank’s net income increased by almost a third (32.8%) to reach 42.11 billion pesos in 2021, from 31.71 billion. pesos recorded a year earlier.

However, it was still 8% lower than the 45.81 billion pesos recorded in 2019 before the pandemic.

BSP’s revenue rose 41.3% to 166.98 billion pesos in 2021 from 118.15 billion pesos a year earlier.

Broken down, interest income increased by 35% to reach 115.43 billion pesos against 80.58 billion pesos in 2020.

Miscellaneous income, which includes trading gains, fees and penalties, rose 58 percent to 51.55 billion pesos from 32.72 billion pesos a year earlier.

Meanwhile, spending rose 68.8% to 136.01 billion pesos in 2021 from 80.58 billion pesos the previous year.

BSP interest expense in 2021 increased by 30% to 60.34 billion pesos from 46.44 billion pesos in 2020. Other expenses more than doubled to 75.67 billion pesos from 34, 15 billion pesos.

Meanwhile, the central bank earned 10.86 billion pesos from foreign exchange
fluctuations in 2021. This is a turnaround from the net loss of 5.78 billion pesos it suffered the previous year.

BSP’s total assets increased by 7.1% to P7,576 billion at the end of 2021, from P7,075 billion a year earlier.

Total liabilities increased by 7.8% from P6,904 billion to P7,440 billion.

At the end of 2021, BSP’s net worth stood at 136.14 billion pesos, down 20% from 171.05 billion pesos a year ago. — Noble LWT

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