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Philippines: BSP earnings double to P30.2 billion in 5 months
MANILA, Philippines — The earnings of the Bangko Sentral ng Pilipinas (BSP) more than doubled to P30.21 billion in the first five months from P14.04 billion in the same period last year on higher trading gains and operating income.
Data from the central bank showed total revenues mostly comprised of interest income on foreign investments, government securities and Treasury bonds jumped by 81 percent to P73.38 billion from January to May compared to P40.52 billion in the same period last year.
Miscellaneous income, including trading gains or losses, fees, penalties and other operating income, among others amounted to P29.52 billion in the first five months, almost four times the P7.49 billion recorded in the same period a year ago.
Likewise, interest income surged by 32.7 percent to P43.86 billion from P33.04 billion.
Total expenses of the BSP zoomed by 50.7 percent to P43.06 billion from January to May compared to a year-ago level of P28.57 billion. Interest expenses jumped by 40.4 percent to P24.48 billion from P17.43 billion.
During the period, the BSP incurred a net loss of P110 million from foreign exchange rate fluctuations arising from the servicing of matured foreign exchange obligations, maturity of derivatives instruments, as well as rollover or reinvestments of matured foreign exchange investments with foreign financial institutions and foreign exchange-denominated government securities.
The amount was a reversal of the gain amounting to P2.09 billion recorded in the same period last year.
The BSP reports gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and exchanged or settled foreign exchange assets and liabilities. It participate in the foreign exchange market to temper the sharp fluctuations in the exchange rate.
The earnings of the BSP plunged by 25.3 percent to P34.53 billion last year from a record P46.24 billion in 2019 after it incurred a P5.78 billion loss from foreign exchange rate fluctuations.
Source: https://www.philstar.com/business/2021/08/18/2120685/bsp-earnings-double-p302-billion-5-months