THE Bangko Sentral ng Pilipinas (BSP) saw its net income fall by double digits in the first seven months of the year, weighed down by higher trading losses that offset modest gains in interest income.
Latest data from the BSP’s ‘Statement of Income and Expense,’ the central bank’s net income after tax and capital reserves dropped by 16.80 percent from January to July this year compared to a year ago.
BSP’s net income amounted to P79.2 billion as of end-July this year from P95.2 billion in the same period last year.
Revenues of the central bank dipped by 14.1 percent year-on-year to P163.8 billion from P190.6 billion.
The central bank’s interest income inched up by 1.13 percent to P142 billion as of end-July this year from P140.4 billion in end-July a year ago.
Despite the slight growth in earnings from interest, the BSP’s miscellaneous income plunged by 56.77 percent to P21.7 billion as of end-July from the P50.2 billion recorded in the previous year. The BSP’s miscellaneous income includes trading gains, fees, penalties and other operating income, among others.
On the other hand, the BSP posted a 3.4-percent decline in its expenses, which stood at P121.5 billion as of end-July this year from a year ago’s P98.4 billion.
The BSP’s interest expenses went down by 17.07 percent to P81.6 billion in the first seven months of the year from P98.4 billion last year. Other expenses, which include net trading losses, expanded by 45.62 percent to P39.9 billion in the January-to-July period this year from P27.4 billion in the same period last year.
Meanwhile, the central bank’s net income before net gain on foreign exchange rate fluctuations, income tax expense, and capital reserves was at P42.3 billion as of the end of July.
That figure represents realized gains or losses from fluctuations in foreign exchange rates arising from foreign currency-denominated transactions of the BSP, according to the central bank. The operating profit was a 34.82-percent contraction from the P64.9 billion the BSP recorded in the same period last year.
Moreover, the BSP’s net gain on foreign exchange rates fluctuation rose by 21.71 percent to P37 billion in January to July this year from P30.4 billion in the same period a year ago. The figure represents realized gains or losses from fluctuations in foreign exchange rates arising from foreign currency-denominated transactions of the BSP.