BSP loss widens to P2.24 billion

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) posted a net loss of P2.24 billion as of February, 37.4 percent more than the P1.63 billion losses a year ago, as expenses soared.

On a monthly basis, the net loss was a reversal from the P3.82 billion net income recorded in January.

Preliminary data showed the total revenue of the BSP, mostly from interest income on foreign investments, government securities and Treasury bonds, went up by 37.4 percent to P34.15 billion from P24.85 billion a year ago.

During the two-month period, the BSP’s interest earnings rose by 37.5 percent to P32.84 billion from P23.89 billion.

Income from miscellaneous activities such as trading gains or losses, fees, penalties and other operating income, among others, increased by 35 percent to P1.31 billion versus last year’s P970 million.

Meanwhile, the total expenses of the central bank climbed by 14.2 percent to P40.14 billion from P35.17 billion as interest expenses reached P28.41 billion, 13.1 percent higher than the P25.1 billion seen a year ago.

Other expenses also rose by 16.5 percent to P11.73 billion in the first two months of the year from P10.07 billion in the same period in 2023.

As of February, the BSP recorded a net gain of P3.75 billion from foreign exchange rate fluctuations arising from servicing of matured foreign exchange obligations, the maturity of derivatives instruments, the rollover or reinvestments of matured foreign exchange investments with foreign financial institutions and foreign exchange denominated government securities.

The amount was 56.8 percent lower than the P1.18 billion recorded in the same period last year.

The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and exchanged or settled foreign exchange assets and liabilities. Its participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate.

Separate central bank data showed that total assets held by the BSP edged higher by 2.2 percent to P7.5 trillion from P7.34 trillion a year ago. Liabilities went up by 2.3 percent to P7.37 trillion.

The BSP’s net worth stood at P133.78 billion as of February, higher than P140.09 billion a year earlier.

In 2023, earnings of the central bank plunged by 25.3 percent to P26.54 billion from P62.63 billion in 2022 after it incurred a P242.9-billion surge in expenses.