The Bangko Sentral ng Pilipinas (BSP) reported a net loss of P1.4 billion ($28 million) in the first quarter of 2023 amid a volatile economic environment.
According to its latest unaudited income and expense data, this marks a reversal of the P23.56 billion net income posted during the same period last year.
The decline in revenues played a major role in the negative financial result, with a 7.4 percent decrease to P38.55 billion from P41.62 billion in the previous year. The BSP attributed this decline to a decrease in international reserves and domestic securities.
However, there was a silver lining as interest income, which includes trading gains, fees, penalties, and other operating income, increased by 34 percent to P41.81 billion.
Expenses witnessed a substantial increase of 105.4 percent, reaching P49.63 billion. This surge was primarily driven by higher interest expenses, which stood at P38.89 billion.
The BSP explained that these increased interest expenses were mainly due to the costs associated with banknote production, coin minting, taxes, and license fees.
The central bank’s total assets decreased by 6.1 percent to P7.36 trillion, mainly reflecting the decline in international reserves. Total liabilities also experienced a decline of 6.7 percent, amounting to P7.22 trillion, while BSP’s net worth stood at P143.75 billion.
