Bangko Sentral ng Pilipinas posted a net income after tax of P13.99 billion in the first nine months, a reversal of the P3-billion net loss it incurred a year ago, on the back of higher revenues and lower expenses.
Data showed the nine-month income was the best profit that BSP reported in any given year.
Revenues jumped 32 percent to P57.12 billion from P43.19 billion a year ago. This mainly came from the 22-percent increase in interest income to P34.70 billion from P28.42 billion. Miscellaneous income also rose 52 percent to P22.43 billion from P14.77 billion.
Expenses dropped 3.7 percent in the nine-month period to P51.82 billion from P53.84 billion in the same period last year. Interest expenses declined to P33.39 billion from P36.59 billion.
Net income before gain on foreign exchange fluctuations, income tax expenses and capital reserves hit P5.30 billion, a turnaround from the P10.65-billion net loss a year ago.
Bangko Sentral incurred annual losses between 2010 and 2015. The biggest net loss was recorded in 2012 at P95.38 billion. However, prudent management trimmed the losses to P17.51 billion in 2013, P10.11 billion in 2014 and P3.90 billion last year.
Bangko Sentral Deputy Governor Diwa Guinigundo earlier said that “if exchange rate improves and strengthens, which means the economy is improving, BSP incurs losses. But if the peso depreciates, BSP profits.”
The peso opened the year’s trading against the US dollar at 47.12 on Jan. 4. It dropped to 48.50 against the greenback as of end-September 2016, driven mainly by external factors particularly the expected rate hike by the US Federal Reserve this year.
Bangko Sentral is currently pushing for the passage into law of a bill seeking additional P150-billion capitalization. The government released in January 2014 an equity assistance of P10 billion to Bangko Sentral that completed its P50-billion capitalization, or 20 years after its creation in 1993.