The Bangko Sentral ng Pilipinas (BSP) reported a ₱16 billion decline in net profit in the first seven months of the year, as single-digit drop in expenses was outweighed by the double-digit fall in revenues.

Data from the BSP showed that the central bank’s net income fell by 16.8 percent to ₱79.2 billion in January to July this year, from ₱95.2 billion in the same period a year ago.

During the seven-month period, the BSP’s revenues fell 14.1 percent to ₱163.8 billion from ₱190.6 billion a year ago. Similarly, expenses dropped by 3.4 percent to ₱121.5 billion from ₱125.7 billion.

For the January-to-July period, the central bank’s interest income rose slightly by 1.1 percent to ₱142 billion from the previous year’s ₱140.4 billion. Meanwhile, miscellaneous income dropped significantly by ₱28.5 billion or 56.8 percent to ₱21.7 billion from ₱50.2 billion a year ago.

Interest income on international reserves, domestic securities, and miscellaneous income were the sources of the BSP’s revenues. Miscellaneous income includes trading gains or losses, fees, penalties, and other forms of operating income.

As for its spending, the BSP’s interest expenses dropped by 17.1 percent to ₱81.6 billion from ₱98.4 billion last year. Meanwhile, other expenses jumped by 45.6 percent to ₱39.9 billion from ₱27.4 billion in the first seven months of 2024.

BSP’s foreign exchange (FX) gains jumped 21.7 percent to ₱37 billion from ₱30.4 billion last year. These FX gains came from fluctuations in currency exchange rates related to the BSP’s foreign currency transactions.

As of end-July, the BSP’s total assets stood at ₱7.81 trillion, down 1.8 percent from ₱7.95 trillion in 2024. The decline was mainly driven by lower international reserves and domestic securities.

Similarly, the BSP’s total liabilities decreased by 2.7 percent to ₱7.51 trillion from ₱7.72 trillion a year earlier. This was driven by decreases in deposits and domestic bills payable, despite increases in currency in circulation and the revaluation of foreign currency accounts.

As of end-July, the BSP’s net worth climbed by 28.6 percent to ₱296.9 billion from ₱230.9 billion in the same period last year. This increase was largely driven by surplus reserves, which jumped by 38.6 percent to ₱236.9 billion from ₱170.9 billion a year earlier. The BSP’s capital, meanwhile, remained at ₱60 billion.