By Eileen A. Mencias

The Bangko Sentral ng Pilipinas yesterday reported a net income of P3.68 billion in the first nine months of the 2008, a sharp turnaround from the P28.93-billion loss it registered year-on-year.

The central bank said it posted a profit of P11.269 billion in the third quarter alone, propelled mainly by foreign exchange gains of P10.431 billion. Central bank?s foreign exchange gains in the nine-month period, including the P18.048 billion it booked in the second quarter, erased the losses of P28.479 billion it incurred in the first quarter. The central bank booked losses of P48.29 billion in the first nine months of 2007.

Revenues in the third quarter of 2008 reached P24.156 billion in the third quarter of 2008, down 15 percent from P28.372 billion on year because of lower interest income on its foreign investments.

The global financial turmoil triggered by the collapse of Lehman Brothers in September reduced asset prices and yields on investments across the globe.

Interest income on international reserves fell to P11.565 billion in the third quarter from P13.69 billion a year ago. Interest income on domestic securities and loans and advances, however, increased during the period.

The central bank?s expenses rose 20.5 percent to P23.03 billion in the third quarter from a year ago.

Interest expense jumped 25 percent to P19.16 billion in the third quarter from P15.349 billion on year due mainly to the increase in the funds that banks parked with the central bank during the period as well as higher liabilities.

The central bank reported a net loss of P86.94 billion in 2007 and did not remit any dividend to the national government for that year. The central bank is required by law to remit half of its income to the national government every year.