BSP’s 2024 net income up on higher revenues

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas’ (BSP) net profit rose by more than four times in 2024 as it posted higher revenues and lower expenses, preliminary data showed.

The central bank’s net earnings surged by 343.8% to P117.6 billion last year from P26.5 billion in 2023, according to its income statement posted on its website.

This was the highest BSP net income on record, based on available data.

The central bank’s revenues jumped by 41% year on year to P300.4 billion in 2024 from P212.7 billion in 2023.

Broken down, the BSP’s interest income climbed by 21.7% to P240.8 billion from P197.9 billion in the previous year.

Miscellaneous income, which includes fees, penalties and other operating income, surged by 302.7% to P59.6 billion from P14.8 billion.

Meanwhile, the BSP’s expenses amounted to P226.7 billion in 2024, down by 6.7% from P243 billion the year prior.

Interest expenses slipped by 0.7% to P167.2 billion from P168.3 billion.

Other expenses, which include net trading losses, likewise declined by 20.2% to P59.5 billion last year from P74.6 billion a year prior.

This brought the BSP’s net income before foreign exchange (FX) gains, tax and capital reserves to P73.7 billion in 2024. This was a turnaround from the P30.3-billion net loss posted in 2023.

The central bank saw a P44.1-billion net FX gain from its foreign currency-denominated transactions last year, slightly lower than the P57 billion booked in 2023.

Meanwhile, separate data showed that the BSP’s total assets rose by 3.5% to P7.81 trillion at end-2024 from P7.55 billion a year earlier.

Bulk of its assets were international reserves at P6.11 trillion, up from P5.71 trillion in 2023.

On the other hand, the central bank’s liabilities went up by 2.4% year on year to P7.59 trillion at end-2024 from P7.4 trillion.

These liabilities included currency in circulation, which stood at P2.7 trillion, while deposits with the central bank were at P2.31 trillion.

The central bank’s net worth rose to P223.5 billion at end-2024 from P142.5 billion from a year prior.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the increase in the central bank’s earnings was driven by “still relatively higher interest income, reduced expenditures, and also some forex gains as also seen in recent months.”

“Volatility in the peso exchange rate near the record low of P59 led to some forex gains,” he added.

The peso closed at P57.845 per dollar at end-2024, depreciating by P2.475 or 4.28% from its end-2023 finish of P55.37 against the greenback. It closed at its all-time low of P59 thrice last year.

“The net decline in long-term interest rates since the latter part of 2023 may have also led to some gains in bond holdings,” Mr. Ricafort said.

Further cuts in benchmark interest rates could lead to more investment gains and reduce interest expenses for the central bank, he added.

BSP Governor Eli M. Remolona, Jr. has said that a rate cut is still on the table at the Monetary Board’s next policy meeting on April 10.

The central bank unexpectedly paused its easing cycle last month, keeping the policy rate at 5.75%. This was after it reduced borrowing costs by a cumulative 75 basis points in three straight meetings last year.