The Bangko Sentral ng Pilipinas (BSP) reported a higher net income of P105.6 billion in the first eight months of 2024, a significant 361 percent increase compared to P22.9 billion the same time last year due to more revenues but less expenses.

Based on the latest BSP data, revenues totaled P220.2 billion as of end-August, up 57.6 percent versus P139.7 billion in the same period in 2023.

The BSP, one of the mandated seed funders to the Maharlika Investment Corp., reported lower expenses during the period of P143.2 billion, 10.8 percent less than the P160.5 billion spent last year.

BSP revenues came from its interest income from international reserves, domestic securities, and miscellaneous income.  

As of end-August, interest income amounted to P159.3 billion, 24.9 percent higher than the previous year’s P127.5 billion. Miscellaneous income rose 399 percent to P60.9 billion from P12.2 billion last year. Miscellaneous income includes trading gains/losses, fees, penalties, and other operating income, among others.

Under expenditures, BSP’s interest expenses totaled P112.1 billion versus P109.7 billion in end-August 2023, or 2.18 percent higher. Other expenses that the BSP said come from trading losses, amounted to P31.1 billion, down 38.7 percent from P50.8 billion same time in 2023.

Meanwhile, the central bank’s foreign exchange or FX gains declined by 34.55 percent to P28.6 billion in the first eight months compared to P43.7 billion last year. FX gains are realized gains from fluctuations in FX rates arising from BSP’s foreign currency-denominated transactions.

The BSP as of end-August posted total assets of P7.768 trillion, up 4.6 percent from P7.428 trillion in 2023. The increase was mostly due to higher international reserves.

Total liabilities, on the other hand, went up by 3.2 percent to P7.522 trillion compared to P7.291 trillion previously. BSP’s liabilities come from higher currency in circulation, obligations from reverse repurchase facility and revaluation of foreign currency accounts.

The BSP’s net worth as of end-August stood at P246.2 billion from P135.7 billion or an increase 81.42 percent. The net worth was boosted by surplus reserves amounting to P186.2 billion which was 140 percent higher than the P77.5 billion in the same period in 2023. 

The BSP’s capital remains at P60 billion only, short of the P200 billion it had to have under the BSP Charter as amended in 2019. However the law that created the Maharlika Investment Fund mandated the BSP to divert its dividends as seed money to the sovereign wealth fund. This postpones the buildup of the BSP capitalization but central bank officials believe they can afford the delay.