By Lee C. Chipongian
The Bangko Sentral ng Pilipinas (BSP) posted a net income of P48.33 billion as of end-October, up 290 percent from same time last year of P12.38 billion, based on its latest statement of income and expense.
The BSP’s foreign exchange (FX) rate gains, in the meantime, increased by 243.70 percent to P51.28 billion from end-October 2017’s P14.92 billion. These realized gains from FX rate fluctuations are from BSP’s foreign currency-denominated transactions such as: Rollover/re-investments of matured FX investments with foreign financial institutions and FX-denominated government securities; servicing of matured FX obligations of the BSP; and maturity of derivatives instruments.
For the January-October period, the central bank’s revenues went up by 4.6 percent year-on-year to P55.79 billion from P53.35 billion. BSP revenues come from its interest income on international reserves and domestic securities which increased to P62.67 billion compared to same time lat year of P47.70 billion.
BSP expenses fell by 9.9 percent to P50.29 billion end-October from P55.82 billion.
During the period, the central bank had total assets of P4.624 trillion, down by 2.20 percent year-on-year or from P4.728 trillion.
The BSP’s assets are its international reserves which in October amounted to $74.71 billion. The reserves improved by November to $75.68 billion but based on the BSP’s latest external sector projection, it does not expect gross international reserves to hit an earlier estimate of $80 billion this year but will only amount to $74 billion in 2018 and $75 billion in 2019. These assets are affected by the peso depreciation against the US dollar, as well as revaluation adjustments in the gold holdings of the BSP.
As of end-October, the BSP has total liabilities of P4.499 billion, less by 3.40 percent than last year’s P4.657 trillion.
During the period, the BSP has a net worth of P124.90 billion, up from P70.67 billion in 2017.
The BSP is mandated by law to remit 75 percent of their net income to the government while other state-owned corporations are only required to remit 50 percent of their net income.
Last year, the BSP’s net income totaled P22.85 billion, up from the previous year’s P17.81 billion. The 2017 FX gains reached P15.48 billion from P19.12 billion in 2016.
The BSP currently has a capitalization of P50 billion. It has taken the government 20 years for remit P40 billion of the P50-billion original capitalization stated in the 1993 BSP charter.