THE CENTRAL BANK’S net profit rose in the third quarter supported by improving gains from domestic securities and foreign exchange trading.

Net earnings of the Bangko Sentral ng Pilipinas (BSP) reached P9.1 billion in the three months ended September, inching up by 3.8% from the P8.7 billion booked in the same period in 2019.

“The quarter-on-quarter increase in quarterly net income was primarily the result of higher interest income from domestic securities and miscellaneous income,” the central bank said.

However, the BSP’s net income was still down by 40% to P22.81 billion year to date from the P38.649 billion in the first nine months last year.

The central bank’s profit was down by 77.3% year on year to P3.8 billion in the second quarter from P16.75 billion, dragged by lower interest income on reserved and miscellaneous income.

In the third quarter, revenues rose by 14.17% to P34.25 billion from P30 billion. In total, interest income slipped 6.9% to P23.332 billion from P25.07 billion.

Interest income from domestic securities surged 198.7% to P8.103 billion from P2.712 billion. Miscellaneous income, which includes trading gains, also climbed 124% P10.883 billion from P4.848 billion.

On the other hand, interest income on international reserves declined by a third to P13.358 billion from P19.925 billion a year ago.

Meanwhile, the central bank’s expenses in the third quarter slipped 8.78% to P19.02 billion from P20.851 billion last year.

As of end-September, the BSP’s assets stood at P6.608 trillion, rising by 4.97% from the P6.295 trillion recorded as of June and by 30% from the P5.09 trillion seen at end-September 2019.

“The BSP’s financial condition remains strong with total assets being dominated by international reserves amounting to $4.82 billion as of end-September,” the central bank said.

Meanwhile, liabilities reached P6.45 trillion, higher by 5.3% from the P6.13 trillion as of end-June and by 30% against the P4.959 trillion seen a year ago. Most of the liabilities were deposits and currency issues. — LWTN