The Bangko Sentral ng Pilipinas (BSP) recorded a record‑high net income for July, driven by robust foreign‑exchange gains and lower expenses, according to preliminary data.
The central bank posted a net profit of ₱170.2 billion for the seven‑month stretch, more than double (114.9 %) the ₱79.2 billion reported a year earlier.
This marks the BSP’s highest net income to date, according to figures published on its website.
Revenues rose 1.9 % year‑on‑year to ₱166.8 billion in the seven months through July, up from ₱163.8 billion.
Interest income, which made up the bulk of revenues, increased 6.13 % year‑on‑year to ₱150.7 billion from ₱142 billion.
However, miscellaneous earnings—comprising fees, penalties and other operating income—fell 25.81 % to ₱16.1 billion, down from ₱21.7 billion a year earlier.
Conversely, the central bank’s expenses dropped 18.8 % to ₱98.6 billion for the seven months through July, compared with ₱121.5 billion a year earlier.
Interest expenses amounted to ₱47 billion, down 42.4 % year‑on‑year from ₱81.6 billion.
Other expenses, which include net trading losses, rose 29.32 % to ₱51.6 billion from ₱39.9 billion.
Consequently, the BSP’s net income before net foreign‑exchange gains or losses, income tax effects, and capital reserves stood at ₱68.2 billion for the period, 61.23 % above the ₱42.3 billion recorded in January‑July 2025.
Meanwhile, the central bank’s bottom line was lifted by a ₱102 billion net gain from foreign‑exchange fluctuations on its foreign‑currency‑denominated transactions, 175.68 % higher than the ₱37 billion posted a year earlier.
The peso averaged ₱61.432 against the US dollar at end‑July, down ₱4.126 year‑on‑year from ₱57.306, per BSP data.
ASSETS, LIABILITIES
Meanwhile, the BSP reported that its assets amounted to ₱7.877 trillion as of July, up 0.8 % year‑on‑year from ₱7.812 billion.
This increase was chiefly driven by a 3.29 % rise in international reserves to ₱6.292 trillion from ₱6.091 trillion.
Holdings of domestic securities fell 13.65 % to ₱952.1 billion from ₱1.103 trillion a year earlier.
Loans and advances surged 57.66 % to ₱131.8 billion from ₱83.6 billion in the same period last year.
Meanwhile, other assets slipped 6.6 % to ₱479.7 billion from ₱513.6 billion in the prior year.
On the other hand, the central bank’s total liabilities fell 1 % to ₱7.436 trillion as of July, down from ₱7.515 trillion in the comparable period a year earlier.
Reserve money, which comprises currency in circulation and reserve deposits of other depository and financial corporations, rose 14.26 % to ₱3.607 trillion from ₱3.157 trillion.
However, other deposits not part of reserve money declined 21.1 % to ₱1.359 trillion from ₱1.722 trillion.
BSP data also showed that net worth reached ₱440.7 billion as of July, 48.43 % higher than the ₱296.9 billion recorded a year earlier.
This followed a 60.7 % jump in surplus or reserves to ₱380.7 billion during the period, up from ₱236.9 billion as of July the previous year.
Its capital remained unchanged year‑on‑year at ₱60 billion.
The BSP’s surplus account reflects its unrestricted retained earnings, while its capital reserves are funds set aside for various contingencies. — Katherine K. Chan