BSP’s 2025 net profit climbs 10% on lower expenses

THE BANGKO SENTRAL ng Pilipinas (BSP) posted a higher net income in 2025, supported by lower expenses and higher gains from foreign exchange (FX) rate fluctuations, preliminary data showed.

The central bank’s net profit rose by 10.25% year on year to P130.1 billion from P118 billion in 2024, data posted on its website showed.

This came despite a 9.3% decline in its revenues to P272.5 billion from P300.4 billion.

Broken down, interest income, which made up the bulk of the BSP’s revenues, went up by 1.23% to P243.8 billion from P240.8 billion.

Meanwhile, its miscellaneous income, which includes fees, penalties and other operating income, among others, sank by 51.68% to P28.8 billion from P59.6 billion.

On the other hand, the BSP’s expenses decreased by 11.1% year on year to P201.4 billion in 2025 from P226.6 billion in 2024.

This was mainly due to the 22.85% drop in interest expenses to P129 billion from P167.2 billion.

Other expenses, which includes net trading losses, increased by 21.89% to P72.4 billion from P59.4 billion.

These brought the BSP’s net income before net FX gains or losses, income tax expenses or benefits, and capital reserves to P71.1 billion, down from P73.8 billion in 2024.

However, the central bank booked a P59-billion net gain from fluctuations in FX rates arising from its foreign currency-denominated transactions last year, 33.79% bigger than the P44.1 billion recorded in 2024. This pushed up its 2025 bottom line as a result.

ASSETS AND LIABILITIES
Meanwhile, the BSP’s total assets stood at P8.003 trillion at end-2025, growing by 2.5% from P7.81 trillion a year earlier, separate data showed.

This was driven mainly by the 5.99% increase in its international reserves to P6.47 trillion from P6.11 trillion.

Its holdings of domestic securities went down by 17.3% to P929.8 billion from P1.12 trillion.

On the other hand, the central bank’s total liabilities edged up by 0.7% to P7.64 trillion  from P7.59 trillion.

Reserve money, which includes currency in circulation, and reserve deposits of other depository and financial corporations, among others, dropped by 6.91% to P3.73 trillion from P4.01 trillion, according to the data.

Other deposits not included in reserve money also went down by 9.91% to P930.1 billion from P1.03 trillion.

Meanwhile, the BSP’s net worth surged by 61.66% to P360.5 billion from P223 billion as its surplus or reserves jumped by 84.36% to P300.5 billion from P163 billion.

The BSP’s surplus account reflects its unrestricted retained earnings, while its capital reserves are funds set aside for various contingencies.

Surplus or reserves also include unrealized gains or losses from the central bank’s investments in government securities, stocks and other securities, as well as its net income or loss from operations. — A.M.C. Sy