The Bangko Sentral ng Pilipinas (BSP) saw its full-year net income climb to ₱130.1 billion in 2025, a 10.3 percent increase from the previous year, as the sharp reduction in interest expenses and robust foreign-exchange gains offset a decline in total revenue.
According to preliminary, unaudited financial statements from the central bank, the ₱12.1 billion year-on-year profit growth follows a ₱118 billion bottom line in 2024 amid shifting global market conditions and fluctuating domestic interest rate environment.
Total revenues for the year fell 9.3 percent to ₱272.5 billion from ₱300.4 billion in 2024. The contraction was primarily driven by a significant drop in miscellaneous income, which includes fees, penalties, and other operating items.
That segment more than halved to ₱28.8 billion from ₱59.6 billion a year earlier. However, interest income provided a steady floor, inching up to ₱243.8 billion from ₱240.8 billion, supported by yields on international reserves and domestic securities.
The central bank’s bottom line was largely protected by a faster pace of decline in overall spending. Total expenses dropped 11.1 percent to ₱201.4 billion, led by a 22.8 percent plunge in interest expenses, which fell to ₱129 billion from ₱167.2 billion in 2024. This reduction in the cost of servicing its liabilities helped mitigate a 21.9 percent rise in other operating expenses, which climbed to ₱72.4 billion.
Currency volatility also worked in the central bank’s favor. Realized foreign-exchange gains jumped by roughly a third to ₱59 billion, up from ₱44.1 billion in 2024. These gains reflect the BSP’s management of foreign currency-denominated transactions and the impact of the peso’s movement against major currencies.
The central bank’s balance sheet expanded during the period, with total assets rising 2.5 percent to ₱8 trillion. The growth was underpinned by a rise in international reserves, which reached ₱6.47 trillion by year-end, more than compensating for a reduction in domestic securities holdings.
On the other side of the ledger, total liabilities saw a modest uptick to ₱7.64 trillion from ₱7.59 trillion. While the revaluation of foreign currency accounts surged by nearly ₱600 billion to ₱1.69 trillion, the increase was tempered by a ₱277 billion contraction in reserve money and a ₱439.9 billion drop in domestic bills payable.
The BSP ended the year with a significantly bolstered capital position. Net worth surged more than 60 percent to ₱360.5 billion from ₱223 billion in 2024. This was fueled by a massive 84.4 percent jump in surplus and reserves, which rose to ₱300.5 billion, while the bank’s formal capital remained unchanged at ₱60 billion.