The Bangko Sentral ng Pilipinas (BSP) reported a 414 percent jump in net income, reaching P95.2 billion in the first seven months of the year, driven by higher revenues and reduced expenditures.
According to its latest statement of income and expenses, the BSP’s total revenues rose by 57.1% to P190.6 billion. A key driver of this growth was a 28% rise in interest income from international reserves and domestic securities, which amounted to P140.4 billion.
Miscellaneous income, comprising trading gains and losses, fees, penalties, and other operating revenue, surged by 329% to P50.2 billion.
The central bank’s total expenses decreased by 8.3% to P125.7 billion, down from P137.1 billion in 2023. These costs include banknote production, coin minting, taxes, licenses, and open market operations. Interest expenses increased by 4% to P98.4 billion, while other expenses, such as net trading losses, fell by 35.5% to P27.4 billion.
Foreign exchange (FX) gains for the BSP declined by 11.37% to P30.4 billion, reflecting the impact of fluctuations in exchange rates from foreign currency-denominated transactions.
As of the end of July, the BSP’s total assets stood at P7.95 trillion, up 9.4% due to higher international reserves and derivative holdings. International reserves accounted for the bulk of the BSP’s assets, with the Philippines’ gross international reserves reaching a record high of $112.7 billion by the end of September.
Total liabilities went up by 8.2% to P7.723 trillion, supported by net gains from FX fluctuations and higher miscellaneous income.
The BSP’s net worth climbed 77.2% to P230.9 billion, bolstered by a significant increase in surplus reserves.
Surplus reserves jumped 143% to P170.9 billion. However, the BSP’s capital remains at P60 billion, well below the P200 billion mandated by the amended BSP Charter of 2019.
Since its founding in 1993, the BSP initially operated with a capitalization of P10 billion, below the legal requirement of P50 billion, which was fully met in 2013. The 2019 amendment raised the capitalization requirement to P200 billion, with plans to build up capital by retaining dividends rather than remitting them to the National Government.
However, the creation of the Maharlika Investment Fund (MIF) under the Marcos administration has diverted BSP dividends as seed capital for the sovereign wealth fund, delaying the central bank’s capital buildup. BSP officials remain optimistic about managing this delay effectively.
