THE BANGKO SENTRAL ng Pilipinas (BSP) saw its net profit decline in the first eight months of 2025 as it booked lower revenues.

The central bank’s net income fell by 17.71% year on year to P86.9 billion at end-August from P105.6 billion a year ago, according to its statement of income and expenses posted on its website.

This came as its revenues dropped by 15.08% to P187 billion in the first eight months from P220.2 billion last year.

Broken down, interest income, which accounted for the bulk of its revenues in the period, grew by 2.39% year on year to P163.1 billion from P159.3 billion.

However, miscellaneous income, which includes fees, penalties and other operating income, plunged by 60.59% year on year to P24 billion from P60.9 billion.

Meanwhile, the central bank’s expenses inched down by 3.98% to P137.5 billion in the eight months through August from P143.2 billion in the comparable year-ago period.

Its interest expenses slid by 17.4% to P92.6 billion from P112.1 billion. Meanwhile, other expenses, which include net trading losses, surged by 44.37% to P44.9 billion from P31.1 billion.

These brought the BSP’s net income before gains or losses from foreign exchange (FX) fluctuations, income tax expenses or benefits, and capital reserves to P49.6 billion in the eight months ended August, down by 35.58% from the P77 billion seen in the comparable year-ago period.

A P37.4-billion net gain from the movements in FX rates as a result of the central bank’s foreign currency-denominated transactions boosted its bottomline in the period. This was 30.77% higher than the P28.6 billion recorded in the same period the prior year.

ASSETS DOWN
Meanwhile, the central bank’s assets inched down by 1.03% to P7.69 trillion at end-August from P7.77 trillion in the same period last year, separate data showed.

International reserves, which accounted for bulk of its assets, reached P6.07 trillion, edging up by 0.83% from P6.02 trillion a year prior.

Meanwhile, the BSP’s holdings of domestic securities went down by 17.03% year on year to P964.1 billion from P1.162 trillion. The central bank’s other assets slipped to P479.9 billion in the eight-month period from P484 billion a year earlier.

The report also showed that the central bank’s liabilities went down by 1.86% to P7.38 trillion at end-August from P7.52 trillion a year prior. Currency in circulation jumped to P2.5 trillion from P2.31 trillion, while deposits with the central bank fell to P2.42 trillion from P2.91 trillion.

Meanwhile, the central bank’s net worth was at P311.3 billion as of August, up 26.4% from P246.2 billion the previous year.

This was driven by the 34.96% increase in its surplus or reserves to P251.3 billion from P186.2 billion. These include the BSP’s unrestricted retained earnings, funds set aside for various contingencies, unrealized gains or losses from its investments in government securities, stocks and other securities, as well as its operating income or loss. — Katherine K. Chan

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