THE BANGKO SENTRAL ng Pilipinas (BSP) saw higher net earnings in the second quarter amid improving revenues and a lower base due to the strict lockdown in the country in the same period of 2020.

Data from the BSP’s Second Quarter 2021 Report on Economic and Financial Developments showed its net income stood at P20.038 billion in the April to June period, surging by 427% from the P3.8 billion logged a year earlier.

On the other hand, its profit dropped 21.11% from the P25.401 billion seen in the first quarter.

“The lower net income, as compared to the previous quarter, was attributed mainly to the significant increase in interest on national government deposits combined with large decline in miscellaneous income,” the BSP said in a statement.

The BSP’s net earnings in the first half of the year reached P45.439 billion, climbing 231% from the P13.709 billion seen in January to June 2020.

The central bank’s revenues more than doubled (130%) to P47.97 billion in the second quarter from P20.786 billion a year ago, but was nearly unchanged compared with the P47.96 billion in the first three months of the year.

“Total revenues were mostly comprised of interest income from international reserves and domestic securities, and miscellaneous income,” it said.

In the second quarter, the BSP’s net loss from foreign exchange rate fluctuations stood at P876 million, higher by 98% than the P441 million seen a year earlier. It, however, decreased by 5.5% from the net loss worth P927 million in the previous quarter.

Meanwhile, total expenditures increased 64.8% to P27.035 billion from P16.405 billion in the second quarter last year, and by 15% from the P23.486 billion in the January to March period.

“The quarter-on-quarter rise in expenditures was due to higher interest expense on NG (National Government) deposits and other expenses,” the central bank said.

The BSP’s assets hit P7.685 trillion as of end-June, rising by 22% from the P6.295 trillion a year earlier. It also inched up by 1.68% from the P7.558 trillion logged as of end-March.

This increase was backed by the country’s gross international reserves, particularly inflows of proceeds from the National Government’s global and Samurai bond issuances that were kept with the BSP, as well as central bank’s income from investments abroad.

Meanwhile, total liabilities grew 22.8% to P7.529 trillion as of June from P6.13 trillion in the previous year and by 1.3% from the P7.432 trillion as of March.

“The BSP’s liabilities during the review period were comprised mostly of deposits and currency issues,” the central bank said.

With this, the BSP’s net worth declined by 5% to P156.2 billion at end-June from P164.5 billion a year ago. However, it was higher by 23% compared with the P126.3 billion as of end-March. — L.W.T. Noble