Forex gains double BSP profit to P53.8 billion

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) more than doubled its profit to P53.8 billion in the first two months of 2026 as higher foreign exchange gains and lower expenses offset a decline in revenues.

Preliminary and unaudited BSP data showed that net income rose by 128.9 percent from P23.5 billion in the same period last year.

The increase was driven mainly by net gains from forex rate fluctuations, which climbed to P45.2 billion from P22 billion. These represent gains realized from the central bank’s transactions in foreign currencies as exchange rates change.

The central bank’s financial statement describes these as “realized gains or losses from fluctuations in forex rates arising from foreign-currency-denominated transactions of the BSP.”

These gains are reported separately from revenues, allowing the central bank’s overall profit to rise even as its revenue collections weakened.

Total revenues fell by 12.9 percent to P33.5 billion in January to February from P38.5 billion a year earlier, according to the BSP. Interest income, which accounted for the bulk of revenues, declined by 16 percent to P31.5 billion from P37.5 billion.

Miscellaneous income, meanwhile, increased to P2 billion from P900 million. This category includes trading gains, fees, penalties and other operating income, although net trading losses are recorded under other expenses.

The revenue decline was more than offset by a sharper reduction in costs. Total expenses dropped by 32.7 percent to P24.9 billion from P36.9 billion.

Interest expenses decreased by 38.8 percent to P14.2 billion from P23.2 billion, accounting for most of the reduction. Other expenses fell by 21.9 percent to P10.7 billion from P13.7 billion.

With expenses falling faster than revenues, income before foreign exchange gains, taxes and capital reserves rose to P8.6 billion from P1.5 billion.

The latest results followed a 6.8-percent increase in the BSP’s full-year net income to P124.6 billion in 2025 from P116.7 billion in 2024.