THE CENTRAL BANK’S net profit as of November slipped compared to the previous year as gains from currency fluctuations decreased.
The net income of the Bangko Sentral ng Pilipinas (BSP) hit P40.24 billion in the eleven months to November 2019, dipping by 2.45% compared to the P42.69 billion booked in the comparable year-ago period.
Revenues of the central bank ballooned by 84.9% year on year to P113.43 billion from P61.35 billion in the first eleven months of 2018. This was fueled by the P93.19 billion worth of net interest income, up by more than a third (33.97%) year on year from the P69.56 billion in the comparable year-ago period.
Meanwhile, miscellaneous income, which includes fees, penalties, and other operating income, turned around to P20.25 billion from a loss of P8.21 billion a year ago.
This was despite a decline in net gains on currency rate fluctuations to P14.46 billion in the period from P52.76 billion from January to November 2018.
The month saw the peso close at P50.81 per dollar on Nov. 29, depreciating by 31 centavos from its close of P50.50 against the greenback on Nov. 4, which was its first trading day for the month. It also weakened by seven centavos from the Oct. 31 close of P50.74 per dollar.
The central bank’s expenses in the eleven months to November increased by more than a third (34.13%) to P75.49 billion from P56.28 billion a year ago.
This was fueled by interest expenses which grew 57.69% to P41 billion from P26 billion.
Despite a slight decline in its profit compared to a year ago, the central bank is still likely to turn a profit for the fourth straight year since it posted a P17.51-billion net income in 2016 after several years of losses. — LWTN