BSP income hits P114 billion

February 22, 2025 | 12:00am

MANILA, Philippines — The net income of the Bangko Sentral ng Pilipinas (BSP) stood at P113.6 billion from January to November last year, almost five times the P23.3 billion earned in the same period a year ago, due to higher revenues and lower expenses. 

Revenues of the BSP surged by 42.9 percent to P278.3 billion during the 11-month period in 2024 from P194.8 billion in the same period in 2023. 

Revenues are mostly interest income on foreign investments, government securities and Treasury bonds.

The BSP said its interest income rose by 22.5 percent to P221.2 billion from P180.6 billion. Miscellaneous income including trading gains or losses, fees, penalties and other operating income, among others, grew four times to P57.1 billion from P14.2 billion. 

On the other hand, the central bank’s total expenses went down by 10.5 percent to P203.1 billion from January to November last year compared to the P227 billion in the same period in 2023.

 Interest expenses inched up by 0.4 percent to P154.3 billion from P153.7 billion, but other expenses fell by 33.3 percent to P48.9 billion from P73.3 billion a year prior.

During the 11-month period, the BSP booked a net gain of P38.6 billion from foreign exchange rate fluctuations, 30.5 percent lower than the P55.5 billion recorded in the same period in 2023.

The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and exchanged or settled foreign exchange assets and liabilities. Its participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate.

After bouncing back against the dollar in 2023, market volatility and economic uncertainties caused the peso to depreciate against the greenback, flirting between the 57 and 59 per $1 level in recent months.

The peso’s performance against the dollar reflects ongoing external pressures and market dynamics, which influence emerging market currencies.