BSP net profit improves to P45.44B – Manila Bulletin

The Bangko Sentral ng Pilipinas (BSP) reported net profit of P45.44 billion in the first six months of 2021, up 231% from the same period last year of P13.71 billion, on the basis of BSP’s latest unaudited preliminary income statement. and expense.

BSP’s net profit increased mainly due to an increase in revenues of 104.50%.

Total income at the end of June stood at 95.93 billion pesos against 46.91 billion pesos while total expenditure was up to 50.54 billion pesos or more than 45% from 34.63 billion of pesos at the same period in 2020.

The BSP also reported a foreign exchange gain of 51 million pesos, a modest amount compared to 1.58 billion pesos in the same period last year.

For the second quarter, the BSP recorded net income of 20 billion pesos, which was less than 25.41 billion pesos in the first three months due to “the significant increase in interest on national government deposits. (NG) combined with a sharp drop in miscellaneous income. “

Preliminary data at the end of June also showed that BSP’s total assets grew 22.1% year-on-year to 7.68 billion pesos while its total liabilities rose 22.8% to 7,500. billion pesos.

BSP’s total assets consist of international reserves which increased during the period mainly due to the NG ROP Global and Samurai Bond bond issues deposited with BSP. BSP’s income from its overseas investments also contributed to the increase in asset size during the period.

BSP commitments are mainly deposits and currency issues.

BSP governor Benjamin E. Diokno said the BSP handed over nearly 16 billion pesos in dividends to the NG to fund its anti-pandemic programs in June and August.

Diokno said the BSP declared dividends of 15.896 billion pesos for fiscal 2020, of which the first 15 billion pesos was handed over on June 28. Another 896 million pesos was deposited in the Treasury on August 18. The BSP reported a net income of 31 pesos 0.71 billion in 2020, lower than in 2019 P45.81 billion.

The head of BSP said dividends represent 50% of BSP’s total net income for 2020.

Since the start of the pandemic, the BSP has handed over 36 billion pesos to NG. He remitted 20 billion pesos in March 2020 from his 2019 net income, and 15.896 billion pesos last month.

Diokno said the central bank was no longer mandated to pay dividends to the NG after its charter revised in 2019, but would continue to pay dividends as long as the government needs additional funds in this “period. extraordinary”.

The revised BSP Charter authorized the BSP to increase its capitalization from 50 billion pesos to 200 billion pesos. It will be financed by its net income since the law no longer obliges the BSP to remit dividends to the NG.

The Central Bank Amended Law or Republic Law 11211 (“A Law Amending The Law Of The Republic No. 7653, otherwise known as The ‘New Law On The Central Bank’, And For Other Purposes” ) was approved on February 14, 2019. Article 2 of the amended charter law specifies that declared dividends will be deposited in a special account in the general fund of the BSP and will be “reserved for the payment of the capitalization increase of the BSP ( and) this payment will be released and released immediately and will continue until the increased funding has been fully paid.



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