Statement from the 5th meeting of the Bank Board of Národná banka Slovenska
The Bank Board of Národná banka Slovenska today (10 March 2015) held its 5th meeting of 2015, chaired by Ján Tóth, NBS Deputy Governor.
The Bank Board took note of the NBS Monthly Bulletin – February 2015 can be found on the NBS website.
The Bank Board approved Coordination Arrangements for the supervision of each of the following insurance groups: VIG AG, UNIQA, Aegon NV, Achmea BV, Generali, NN Group N.V., Munich Re, Axa and Allianz.
The Coordination Arrangements are concluded for the establishment and functioning of the college of supervisors for the given group. They lay the basis for the group supervision with provisions on cooperation and information exchange between the supervisory authorities constituting the college and on the consultation and decision-making process within the college.
The Bank Board approved a Decree of Národná banka Slovenska amending Decree No 13/2014 of Národná banka Slovenska of 29 July 2014 on the submission of statements, reports, and other disclosures by investment firms and branches of foreign investment firms for supervision purposes.
The purpose of this Decree is to align data collection in the area of financial reporting with the new framework established by Decree No 12/2014 of Národná banka Slovenska of 29 July on the submission of statements, reports, and other disclosures by banks and branches of foreign banks for supervision purposes, and to ensure continuity in the composition of databases and information reported in the statements “Balance sheet of assets and liabilities Bil (NBS) 1-12” and “Profit and loss account Bil (NBS) 2-12” for non-bank investment firms and branches of foreign investment firms.
The Decree will enter into force on 1 April 2015.
The Bank Board approved the audited financial statements of Národná banka Slovenska prepared as at 31 December 2014.
Národná banka Slovenska reported a profit of €102,193,000 for 2014 (compared with a profit of €489,846,000 for 2013).
Under a decision of the Bank Board, the general provision for financial risks was increased to €520 million as at 31 December 2014, from €300 million as at 31 December 2013, thereby reducing the total profit by €220,000. This provision is allocated to the coverage of exchange-rate, interest-rate, credit, and gold-price risks; these risks are monitored on a regular basis and the amount of the provision is reassessed annually.
NBS’s principal source of income in 2014 was interest income on bonds, which amounted to €364,634,000 (down from €492,493,000 in 2013). These comprised securities in NBS’s investment portfolio, which yielded €303,473,000 (€402,966,000 in 2013), and securities held for monetary-policy purposes, which yielded €61,161,000 (€89,527,000 in 2013).
The net profit on financial operations was €147,055,000 (€220,717,000 in 2013).
The result of Národná banka Slovenska for 2014 included €599,000 as a share in the net profit of the European Central Bank for 2014 (€4,196,000 in 2013) and €9,281,000 as share in the preliminary redistribution of the ECB profit for 2014 (€13,550,000 in 2013). NBS’s net income from the redistribution of Eurosystem monetary income for 2014 was €47,072,000 (€50,382,000 in 2013).
The central bank’s net operating expenses rose in 2014 to €58,855,000 (from €49,573,000 in 2013). The increase was largely accounted for by expenditure on the assessment of the three largest credit institutions in Slovakia (€4,438,000), carried out as part of the comprehensive assessment of euro area banks within the framework of the Single Supervisory Mechanism. Looking at the breakdown of the operating budget, wage and social expenses stood at €35,096,000, building and equipment overheads at €23,414,000, and asset depreciation charges at €7,714,000, while operating income amounted to €7,369,000.
Net expenditure on the production of euro banknotes and coins was €7,395,000 (up from €4,602,000 in 2013). In 2014, with Slovak koruna coins having ceased to be exchangeable for euro as of 2 January, NBS recorded a special issuance income on unexchanged Slovak koruna coins, of €23,778,000.
The Bank Board decided that NBS’s profit for 2014 will be used to reduce accumulated losses from previous years.
In accordance with Article 39(5) of the NBS Act, the annual financial statements of Národná banka Slovenska, together with the independent auditor’s report and the NBS management report for 2014 will be submitted to the Slovak Parliament.
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