Bangko Sentral ng Pilipinas posted a record net income after tax of P15.26 billion in the first 10 months, a sharp reversal of the P4.41-billion net loss it booked a year ago.
Available data compiled by Bangko Sentral since 2001 showed the net profit in January to October was the biggest on record.
Revenues jumped 30 percent in the 10-month period to P62.33 billion from P47.87 billion a year earlier. This mainly came from the 21-percent increase in interest income to P38.83 billion from P32.08 billion. Miscellaneous income also rose to P23.50 billion from P15.79 billion last year.
Expenses dropped 2.3 percent in the first 10 months to P58.49 billion from P59.90 billion in the same period last year. Interest expenses went down to P36.95 billion from P40.75 billion, while other expenses rose to P21.54 billion from P19.15 billion.
Net income before gain on foreign exchange fluctuations, income tax expenses and capital reserves hit P3.83 billion, also a turnaround from P12.03-billion net loss a year ago.
Bangko Sentral had incurred losses since 2010. The biggest net loss was recorded in 2012 at P95.38 billion. However, prudent management trimmed that loss 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 at 47.12 per US dollar on Jan. 4. It dropped to 48.50 at the end of September 2016, driven mainly by external factors particularly the expected rate hike by the US Federal Reserve this year.
The Fed last week increased interest rates, the first time in a year and second since the global financial crisis in 2008.
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, 20 years since its creation in 1993.
Bangko Sentral is seeking an additional capitalization of P150 billion payable in three years, on top of the existing P50 billion, in a bid to accomplish its functions effectively.