Statement from the NBS Bank Board's 6th meeting of 2016
The Bank Board of Národná banka Slovenska today (8 March) held its 6th meeting of 2016, chaired by Jozef Makúch, the NBS Governor.
The Bank Board took note of NBS’s February 2016 Monthly Bulletin, which will be published on the NBS website.
The Bank Board approved the audited annual financial statements of Národná banka Slovenska prepared as at 31 December 2015.
NBS reported a gross profit of €144,604,000 for 2015, while its statutory net profit, including a €140 million increase in the general provision for financial risks, amounted to €4,604,000.
NBS’s principal source of income in 2015 was interest income on bonds, which amounted to €159,957,000 (the corresponding figure for 2014 was €364,634,000). This income comprised €105,211,000 from securities in NBS’s investment portfolio (€303,473,000 in 2014), and €54,746,000 from securities held for monetary policy purposes (€61,161,000 in 2014).
Withholding tax on income from bonds issued in Slovakia amounted to €2,202,000 in 2015 (€156,000 in 2014). The net profit on financial operations was €77,797,000 (€147,055,000 in 2014), with gains on interest rate swaps accounting for €60,138,000 of the total (€128,346,000 in 2014).
NBS’s result for 2015 included €1,635,000 as a share in the net profit of the European Central Bank for 2014 (its share of the ECB’s 2013 profit was €599,000) and €8,913,000 as share in the preliminary redistribution of the ECB’s profit for 2015 (€9,281,000 in 2014). NBS’s net income from the redistribution of Eurosystem monetary income for 2015 was €51,583,000 (€45,119,000 in 2014).
As regards its operations in 2015, NBS engaged in new activities and tasks related to its assumption of responsibility for financial consumer protection in Slovakia, as well as tasks pertaining to the ECB’s new Single Supervisory Mechanism and tasks required by the Act on resolution in the financial market. NBS’s net operating expenses in 2015 amounted to €54,660,000, which was 7% lower than the same figure for 2014.
In 2015 wage and social expenses stood at €38,031,000, building and equipment overheads at €17,584,000, and asset depreciation charges at €7,350,000, while operating income amounted to €8,305,000. Net expenditure on the production of euro banknotes and coins was €6,668,000 (this item was recorded as a net income of €16,383,000 in 2014, owing to an extraordinary income of €23,778,000 from the issuance of those Slovak koruna coins that were not exchanged for euro by 2 January 2014, the last deadline for exchanging the pre-euro coinage).
The general provision for financial risks was increased to €660 million (from €520 million in 2015), under a decision of the Bank Board of 26 January 2016. This provision, established in accordance with the ECB’s Guideline on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2010/20), is intended to eliminate uncertainty related to financial market developments by covering exchange-rate, interest-rate, credit and gold-price risks.
The whole 2015 profit of NBS (€4,604,000) was set off against losses accumulated from previous years, in accordance with a Bank Board Decision taken under Article 39(4) of the Act on Národná banka Slovenska (‘the NBS Act’).
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 2015 will be submitted to the Slovak Parliament.
The Bank Board approved the announcement of the issuance of a €100 gold collector coin commemorating the 275th anniversary of the coronation of Maria Theresa in Bratislava. The euro collector coin, weighing 9.5 g and measuring 26 mm in diameter, was designed by Vladimír Pavlica and produced by the Kremnica Mint from an alloy containing 90% gold, 7.5% silver, and 2.5% copper. The coin is due to go on sale in May 2016.
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