By Imee Charlee C. Delavin, Reporter

Central bank’s net loss narrower as of October

Posted on January 07, 2016

THE BANGKO Sentral ng Pilipinas (BSP) further trimmed its losses as of October last year compared to the same period in 2014, official data showed, benefitting from lower interest payments and on the back of faster revenue growth for the period.

The central bank’s latest income statement posted on its Web site showed the regulator posted a net loss of P4.41 billion in the 10 months ended October, lower than the P5 billion in losses recorded in the comparable 2014 period.

Revenues went up to P47.87 billion in the first 10 months from P42.39 billion as the central bank’s interest income grew to P32.08 billion from P27.24 billion.

The regulator’s miscellaneous earnings -- coming from fees and commissions, income from acquired assets, and gains from securities trading in the open market -- were also slightly up to P15.79 billion from the P15.15 billion logged during the same period a year ago.

At the same time, the BSP’s expenses grew by 7.63% to P59.9 billion, from the previous year’s P56.92 billion.

Interest expenses stood at P40.75 billion at end-October, up slightly from the previous year’s P38.23 billion, while other expenditures rose to P19.15 billion in the period from P18.7 billion a year prior.

The BSP also realized a P7.63-billion net gain from foreign exchange fluctuations, though this was lower by 12.03% from the P9.54 billion recorded in the same period the year previous.

The BSP occasionally participates in currency trade to temper sharp movements in the foreign exchange market, with the regulator incurring losses in past years amid its efforts to maintain a stable currency.

The central bank was in the red for the fifth straight year in 2014, booking a net loss of P10.11 billion. This was, however, an improvement from the P17.5-billion net loss it incurred in the previous year.