Thailand
Philippines: BSP earnings down 14% to P34.5 billion
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) reported a 14.3 percent decline in earnings to P34.5 billion from January to November last year compared to a year-ago level of P40.24 billion on the back of lower revenues and the net loss on foreign exchange rate fluctuations.
Revenues of the regulator, which is made up of interest income from foreign investments, government securities and Treasury bonds, slipped by 4.3 percent to P108.5 billion during the 11-month period from P113.43 billion in the same period in 2019.
Likewise, the BSP reported a 9.7 percent decrease in expenditures to P68.14 billion from January to November last year compared to P75.49 billion in the same period in 2019 due to lower interest expense on term deposit and reverse repurchase facilities.
The BSP booked a net loss of P5.67 billion from foreign exchange rate fluctuations arising from servicing of matured foreign exchange obligations, the maturity of derivatives instruments, as well as rollover or re-investments of matured foreign exchange investments with foreign financial institutions and foreign exchange -denominated government securities.
This was a complete reversal of the P14.46-billion gain made in the same period in 2019.
The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and exchanged or settled foreign exchange assets and liabilities. It participates in the foreign exchange market to temper sharp fluctuations in the exchange rate.
The peso emerged as one of the strongest currencies in the region, gaining 5.1 percent to close 2020 at 48.04 to $1 from 50.635 to $1 in end 2019.
The BSP’s net income increased by 18.2 percent to a record high of P47.1 billion in 2019 from P39.85 billion in 2018 as revenues jumped by 79 percent to P121.73 billion from P68 billion, while expenses increased by 31.4 percent to P86.62 billion from P65.9 billion.
The BSP transmitted P20 billion in advance dividend payment to help beef up the government’s war chest versus the COVID-19 pandemic, even though its amended charter under Republic Act 11211 has exempted it from paying dividends to the national government.
Source: https://www.philstar.com/business/2021/01/18/2071106/bsp-earnings-down-14-p345-billion