The Bangko Sentral ng Pilipinas (BSP) has reported a lower net income from January to July, as revenues continued to decline despite reduced expenses during the review period.
Preliminary data from the central bank showed that net income after tax and capital reserves declined by nearly 17 percent to P79.2 billion during the seven-month period from P95.2 billion a year ago.
Revenue of the BSP for the seven-month period dropped by more than 14 percent, or P26.8 billion, to P163.8 billion from last year’s P190.6 billion.
Interest income edged up by 1.14 percent to P142 billion during the seven months from P140.4 billion a year ago.
However, the subtle increase was counterbalanced by a steep 57 percent decline in earnings from miscellaneous activities to P21.7 billion from P50.2 billion.
Miscellaneous income includes trading gains or losses, fees, penalties and other operating income, among others.
On the expense side, the central bank was able to reduce costs by 3.3 percent to P121.5 billion from last year’s P125.7 billion. This can be attributed to lower interest expenses that dropped by 17 percent to P81.6 billion from P98.4 billion.
Meanwhile, other expenses increased to P39.9 billion from January to July compared to last year’s P27.4 billion.
The BSP also posted a net gain of P37 billion from foreign exchange fluctuations from January to July, which is 21.7 percent higher than the P30.4 billion recorded last year.
The central bank records gains or losses once foreign exchange assets and liabilities are matured, sold, or settled. It also intervenes in the foreign exchange market to curb sudden fluctuations in the peso-dollar rate.