MANILA, Philippines — The earnings of the Bangko Sentral ng Pilipinas (BSP) ballooned five-fold to P95.2 billion as of end-July on the back of higher revenues and lower spending.
Preliminary data from the BSP showed that net income of the central bank soared over 400 percent to P95.2 billion in January to July from P18.5 billion in the same period last year.
This came after revenues rose by nearly 60 percent to P190.6 billion from P121.3 billion.
Most of the revenues came from interest income on foreign investments, government securities and Treasury bonds which jumped by 28 percent to P140.4 billion.
Miscellaneous income likewise more than quadrupled to P50.2 billion. This covers trading gains or losses, fees, penalties and other operating income, among others.
The increase in BSP revenues was complemented by the eight percent decline in its expenses to P125.7 billion from P137.1 billion in the seven-month period in 2023.
Broken down, interest expenses inched up by four percent to P98.4 billion but this was offset by the 36-percent reduction in other costs at P27.4 billion.
Further, the BSP reported an 11-percent decline in gains from foreign exchange fluctuations during the seven-month period to P30.4 billion versus a year-ago level of P34.3 billion.
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.
It participates in the foreign exchange market to temper the sharp fluctuations in the exchange rate.