BSP net worth falls 4.5% to PHP133.8 billion

The Bangko Sentral ng Pilipinas (BSP)’s net worth decreased by PHP133.78 billion as of the end of February, or 4.5 percent, compared to PHP140.09 billion in the same period last year, due to lower account surpluses and retained earnings.

Based on its latest unaudited assets and liabilities report, the BSP registered total assets of P7.505 trillion during the period, up 2.2 percent from the same period last year when it stood at P7.347 trillion. Meanwhile, total liabilities rose 2.3 percent to P7.371 trillion from P7.206 trillion in 2023.

The value of the BSP’s assets is increased by the country’s foreign exchange reserves and domestic securities held by the central bank.

On the other hand, total liabilities are also higher due to higher cash in circulation, reverse repurchase obligations and revaluation of foreign currency accounts.

As for the BSP’s excess reserves, they stood at P73.78 billion as of end-February, down from P80.09 billion during the same period in 2023. In addition to retained earnings and surpluses, the excess reserves consist of capital reserves for contingency and unrealized gains or losses on the BSP’s securities and equity investments.

The BSP’s capital remains at only PHP 60 billion, which is less than the PHP 200 billion it was required to have under the BSP’s charter as amended in 2019.

BSP’s income statement showed that the company’s total revenue for the first two months of 2024 amounted to PHP 34.15 billion, an increase of 37.4 percent compared to the same period last year when it amounted to PHP 24.85 billion.

The BSP’s revenue came from interest income from international reserves and domestic securities. As of end-February, interest income reached PHP32.84 billion, while miscellaneous income from trading profits/losses, fees, penalties and other operating income totaled PHP1.31 billion.

The central bank’s expenses increased by 14.2 percent to PHP40.14 billion from PHP35.17 billion during the same period last year. The BSP’s interest expenses totaled PHP28.41 billion, while other expenses stood at PHP11.73 billion.

The BSP incurs high costs of producing banknotes and minting coins, as well as taxes and licensing fees, and the costs of open market operations.

At the end of February, the BSP reported a net loss of PHP2.24 billion, which is higher than the net loss of PHP1.63 billion recorded during the same period last year.

During the same period, the BSP also recorded foreign exchange and currency losses of PHP5.99 billion, down from a loss of PHP10.31 billion in the previous year.

BSP is one of the authorized donors of seed capital to Maharlika Investment Corp. (MIC), which will manage the Maharlika Investment Fund (MIF) under Republic Act No. 11954.

The MIC will mobilize and leverage MFIs to accelerate the implementation of the government’s flagship infrastructure projects worth approximately 8.7 trillion pesos.