THE BANGKO SENTRAL ng Pilipinas’ (BSP) net income more than doubled in the first quarter as it booked a larger net foreign exchange (FX) gain, preliminary data showed.
The central bank’s net profit surged by 122.1% to P40.2 billion in the first three months of the year from P18.1 billion in the same period in 2024, according to its income statement posted on its website.
Broken down, the central bank’s revenues slipped to P67 billion from P67.1 billion a year prior.
This came as interest income jumped by up 12.69% year on year to P60.4 billion from P53.6 billion, while miscellaneous earnings — which consists of fees, penalties and other operating income — declined by 51.11% to P6.6 billion from P13.5 billion.
Meanwhile, the BSP’s expenses went down by 3.24% to P50.8 billion in the first quarter from P52.5 billion in the comparable year-ago period.
Broken down, interest expenses declined by 17.1% to P35.4 billion from P42.7 billion.
Meanwhile, other expenses, which include net trading losses, surged by 58.16% to P15.5 billion from P9.8 billion.
These brought the BSP’s net income before FX gains or losses, income tax expense or benefit, and capital reserves to P16.2 billion in the first quarter, 10.96% higher than P14.6 billion in the same period last year.
Adding to the central bank’s overall earnings in the three-month period was a P24-billion net gain from the fluctuation in FX rates realized via its foreign currency-denominated transactions, which surged from the P3.5-billion gain recorded in the first quarter of 2024.
“Higher BSP earnings would lead to stronger finances in terms of higher capital, thereby providing greater financial ammunition to fulfill its mandate of price stability and financial stability,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“This also reflects financial prudence that would help promote a more stable and stronger banking system. This would also help improve the government’s overall fiscal performance in terms of greater surplus,” he added.
ASSETSMeanwhile, separate data showed that the BSP’s total assets grew by 2.8% year on year to P7.79 trillion at end-March from P7.57 trillion a year earlier.
International reserves made up the bulk of the central bank’s assets at P6.07 trillion, higher than P5.81 trillion in the same period last year.
Meanwhile, the central bank’s liabilities went up by 1.4% to P7.52 trillion as of March from P7.42 trillion.
These liabilities included currency in circulation, which amounted to P2.57 trillion, while deposits with the central bank stood at P1.96 trillion.
The BSP’s net worth was at P271.5 billion, while its surplus or reserves — which include its unrestricted retained earnings, capital reserves, unrealized gains or losses on investments in securities and stocks, and net income or loss from its operations — was at P211.5 billion. — Katherine K. Chan
