BSP net profit up 250% in first 7 months – Manila Bulletin

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The Bangko Sentral ng Pilipinas (BSP) reported that its net profit rose 250% year-on-year to 48.71 billion pesos at the end of July, from 13.90 billion pesos, thanks to higher interest and miscellaneous benefits.

BSP’s net result is boosted by significant miscellaneous income

Based on the preliminary and unaudited financial statements of the PASB, tTotal revenue increased 95.3% year-on-year to 107.75 billion pesos from 55.16 billion pesos in the same period in 2020.

Interest income from foreign investments and domestic securities reached 65.59 billion pesos, up 42 percent from 46.19 billion pesos last year.

Miscellaneous income from trading gains / losses, fees, penalties and other operating income, among others, also jumped 369.48% to 42.16 billion pesos from 8.98 billion pesos .

Total spending, meanwhile, rose 46.7 percent to 59.85 billion pesos from 40.81 billion pesos. BSP expenses include the production of banknotes and the cost of minting coins, as well as taxes and license fees. Interest expense totaled P34.67 billion, up 39% year-on-year from P24.92 billion while other expenses amounted to P25.17 billion from P15.88 billion.

The central bank also announced a modest net foreign exchange (FX) gain of 80 million pesos at the end of July, reversing a net loss of 32 million pesos on foreign exchange during the same period last year.

The BSP had total assets of 7.936 billion pesos during the period, up 20% year-on-year or 6.613 billion pesos. Total liabilities also increased 20.50 percent to P7.772 trillion from P6.449 trillion. The central bank’s assets are made up of international reserves and income from its investments abroad, while the liabilities are mainly deposits and currency issues.

BSP’s net worth of 164 billion pesos was higher than 156 billion pesos at the end of June, but remained the same compared to the end of June 2020, which was also 164 billion pesos.

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’ 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 this year, the BSP handed over to the government a combined amount of 36 billion pesos in the form of dividends for anti-pandemic programs.

BSP Governor Benjamin E. Diokno said the latest dividends of almost 16 billion pesos represent 50% of its total net income for 2020 of 31.71 billion pesos.

Diokno said that even though the BSP is no longer mandated to pay dividends after its charter review in 2019, it will continue to do so as long as the government needs additional funds in this “extraordinary time”.


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