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BSP posted P1-b profit in Q2

Bangko Sentral ng Pilipinas posted a net income of P1 billion in the second quarter this year, a reversal of the P3.79-billion net loss it incurred a year ago, led by the increase in interest income.

Data showed the second-quarter figure was also a turnaround from the P3.185-net loss in the first quarter this year.

This trimmed the net loss of Bangko Sentral in the first half to P2.18 billion.

Total revenues in the second quarter climbed to P16.1 billion from P12.961 billion a year ago and P15.3 billion in the first quarter this year.

“Interest income increased by 15.2 percent from the previous quarter’s aggregate level. Net income from branches, likewise, improved by 341.6 percent or P0.6 billion, quarter-on-quarter,” the bank regulator said in its report on economic and financial developments for the second quarter.

Bangko Sentral incurred a net loss of P95.4 billion in 2012, mostly paper losses related to the rapid appreciation of the peso against the US dollar, which deflated the peso value of its huge gross international reserves. The net loss fell to P17.5 billion in 2013 and P10.1 billion in 2014.

Data showed total expenditures in the second quarter increased to P18.5 billion,from P16.01 billion a year ago. It was also P1.2 billion higher than the level posted in the first quarter.

“The quarter-on-quarter increase in expenditures was due mainly to higher interest expense on national government deposits and other expenses,” it said.

Bangko Sentral’s unaudited total assets reached P4.180 trillion as of end-June, 1.1 percent or P46.1 billion higher than the quarter-ago level of P4.134 trillion. It was also higher than

P4.028 trillion a year ago.

Bangko Sentral’s liabilities increased by P44.9 billion or 1.1 percent, quarter on quarter, to P4.137 trillion, and by 4.1 percent or P163.8 billion relative to the end-June 2014 level.

The bank’s net worth also increased to P43.2 billion compared to the quarter-ago level of P41.9 billion.

“The increase in the BSP’s assets was due largely to the higher level of international reserves account, which rose to P3,622.1 billion in Q2 2015, an increase of 1.1 percent or P41.0 billion from the previous quarter’s P3,581.1 billion,” Bangko Sentral said.

The uptick was attributed to the increase in the level of reserves along with the mild depreciation of the Philippine peso against the US dollar.

Liabilities increased during the review period as deposits, particularly from the Bureau of Treasury, outpaced the growth of circulated currencies.

Total deposits increased by P52.8 billion to P2.945 trillion, notwithstanding, the decrease in special deposit accounts of about 4.2 percent or P44.1 billion in the second quarter.

Issued currencies declined by P11.1 billion to P798.6 billion from P809.7 billion a quarter ago.

Bangko Sentral is pushing for the passage into law of a bill seeking additional P150-billion capitalization.  The government released in January 2014 an equity assistance of P10 billion to Bangko Sentral that completed its P50-billion capitalization, 20 years since its creation in 1993.

Bangko Sentral is seeking an additional capitalization of P150 billion payable in three years, on top of the existing P50 billion, in a bid to accomplish its functions effectively.

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