By Lee C. Chipongian

The central bank posted P1.66 billion in net income in the first quarter, higher year-on-year from P156 million, according to the latest data.

However, the end-March profits is almost half of the previous quarter’s P3 billion despite lower expenses and steady revenues from reserves and securities.

The Bangko Sentral ng Pilipinas’s (BSP) “tentative” financial statements show that as of end-March, it has revenues of P12.557 billion from the same period last year of P13.167 billion and from P12.085 billion in the previous quarter.

Expenses were lower at P15.558 billion because of decreased interest expenses on overnight deposit facility versus last year’s P16.684 billion and end-December’s P19.364 billion.

A report from the BSP said net income continue to be supported by foreign exchange gains which in the first quarter, reached P4.695 billion. However this was significantly lower than the previous quarter’s P10.413 billion but more than the same period in 2016 of P3.673 billion.

Foreign exchange rate fluctuations come from BSP’s foreign currency transactions such as foreign exchange investments, servicing of maturing obligations, and derivatives.