Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Top News

Elevated rates boost BSP’s end-July profit

by
October 21, 2024
in Top News
0
Elevated rates boost BSP’s end-July profit
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter
BANGKO SENTRAL NG PILIPINAS

THE BANGKO SENTRAL ng Pilipinas’ (BSP) profit surged at end-July on the back of strong revenues, driven by higher interest rates, preliminary data showed.

The central bank’s net income increased to P95.2 billion in the first seven months of the year from P18.5 billion in the same period a year ago, based on its statement of income and expense posted on its website.

The regulator’s revenues grew by 57.1% to P190.6 billion in the period from P121.3 billion in the previous year.

Broken down, the bulk or 73.7% of its revenues came from interest income, which rose by 28.1% to P140.4 billion from P109.6 billion a year ago amid an elevated rate environment.

Miscellaneous income, which includes fees, penalties and other operating income, surged by 329% to P50.2 billion from P11.7 billion a year ago.

Meanwhile, the central bank trimmed its expenses by 8.3% to P125.7 billion in the seven months ended July from P137.1 billion in the same period the year prior.

Other expenses, which include net trading losses, declined by 35.5% to P27.4 billion from P42.5 billion.

On the other hand, interest expenses rose by 4% year on year to P98.4 billion from P94.6 billion.

The BSP’s net income before foreign exchange (FX) gains, tax, and capital reserves stood at P64.9 billion, a turnaround from the P15.8-billion loss posted in the comparable year-ago period.

Its net FX gain from foreign currency-denominated transactions dropped by 11.4% to P30.4 billion from P34.3 billion but still boosted its bottom line.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the increase in the BSP’s seven-month net profit came on the back of its high interest income amid elevated rates prior to the start of its policy easing cycle.

The central bank raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to help tame red-hot inflation.

The Monetary Board in August delivered its first rate cut in nearly four years. It has now reduced rates by a total of 50 basis points (bps) so far this year after another easing move this month and has signaled further cuts ahead.

“The improved earnings was also due to slower growth in overall expenditures, especially interest expenses, also despite lower forex gains versus a year ago,” Mr. Ricafort added.

Meanwhile, the central bank’s total assets grew by 9.4% to P7.95 trillion as of July from P7.27 trillion in the same period in 2023.

Broken down, this was composed primarily of international reserves (P6.2 trillion) followed by domestic securities (P1.17 trillion), loans and advances (P83.4 billion) and bank premises and other fixed assets (P20.7 billion), among others.

Meanwhile, the BSP’s total liabilities rose by 8.1% to P7.72 trillion as of July from P7.14 trillion a year earlier.

Currency in circulation stood at P2.31 trillion at end-July, BSP data showed. Deposits with the central bank reached P2.69 trillion in the same period. — Luisa Maria Jacinta C. Jocson

ShareTweetPin

Related Posts

Have a taste of the perfect day in paradise with SULÀ Spirits
Top News

Have a taste of the perfect day in paradise with SULÀ Spirits

January 8, 2025
First months of 2025 likely rainy amid La Niña conditions, says PAGASA
Top News

First months of 2025 likely rainy amid La Niña conditions, says PAGASA

January 8, 2025
December inflation rises to 2.9%
Top News

December inflation rises to 2.9%

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
PHL end-December dollar reserves drop to $106.8B
Top News

PHL end-December dollar reserves drop to $106.8B

January 7, 2025
Next Post
Netflix PHL makes its first psychological thriller zombie film

Netflix PHL makes its first psychological thriller zombie film

Recommended

SC, S. Korean agency partner to modernize PHL judicial system

SC, S. Korean agency partner to modernize PHL judicial system

January 7, 2025
Rachel Reeves’ Claim of Ignorance Regarding Public Finances Deemed ‘Laughable’

Rachel Reeves’ Claim of Ignorance Regarding Public Finances Deemed ‘Laughable’

August 23, 2024
Rules currently favor imports in 2-wheel EV market, Honda says

Rules currently favor imports in 2-wheel EV market, Honda says

September 22, 2024
Why Choose an Eastern European BPO Boutique Company?

Why Choose an Eastern European BPO Boutique Company?

December 3, 2024
Allan Leighton returns to Asda as chair, succeeding Stuart Rose

Allan Leighton returns to Asda as chair, succeeding Stuart Rose

November 26, 2024
The night is darkest before dawn: Georgia will be freed from Ivanishvili’s “Russian dream”

The night is darkest before dawn: Georgia will be freed from Ivanishvili’s “Russian dream”

October 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved