Statement from the NBS Bank Board’s 5th meeting of 2020
The Bank Board of Národná banka Slovenska today (3 March) held its 5th meeting of 2020, chaired by NBS Governor Peter Kažimír.
The Bank Board approved the audited financial statements of Národná banka Slovenska (NBS) prepared as at 31 December 2019. NBS reported a profit of €212.065 million for 2019 (its profit for 2018 was €172.336 million).
The profit was based mainly on interest income on bonds, which amounted to €207.306 million (the corresponding figure for 2018 was €152.432 million). This income comprised €104.413 million in interest income from securities purchased for monetary policy purposes (€93.739 million in 2018) and €102.893 million in interest income from securities held in NBS’s investment portfolios (€58.693 million in 2018). Withholding tax paid to the Slovak state budget on income from bonds issued in Slovakia amounted to €35.076 million (€28.884 million in 2018).
NBS’s net income from the redistribution of Eurosystem monetary income for 2019 was €91.384 million (€96.805 million in 2018). The bank’s result for 2019 included €16.452 million as its allocation under the interim distribution of the European Central Bank’s profit for 2019 (€13.074 million in 2018) and €4.214 million as its share in the ECB’s net profit for 2018 (in 2018 the share in the 2017 profit was €3.150 million).
In accordance with a decision of the Bank Board, the general provision for financial risks was left unchanged in 2019, at €660 million as at 31 December. This provision, which the Bank Board reviews each year, is intended to cover exchange rate risk, interest rate risk, credit risk, equity risk and gold price risk.
Net expenditure on the production of euro banknotes and coins stood at €5.415 million (€6.229 million in 2018). In 2019 the bank commissioned the production of 56.4 million €20 banknotes, 54.5 million circulation coins, a further 160,800 coins for annual coin sets issued in 2019, and seven collector coin issues with a total issuing volume of 67,000 coins.
Net operating and administrative expenses amounted to €66.818 million (€65.644 million in 2018). Wage and social expenses stood at €53.455 million, operating costs of buildings and equipment at €19.928 million, and fixed asset depreciation at €9.243 million. Operating income amounted to €15.808 million, of which €11.955 million comprised contributions and fees paid by financial market participants subject to NBS supervision. The number of NBS employees averaged 1,103 in 2019 (1,097 in 2018).
Under the Bank Board’s decision of 5 March 2019, and in accordance with Article 39(4) of the Act on Národná banka Slovenska (‘the NBS Act’), NBS’s profit for 2019, amounting to €212.065 million, was set off in full against losses accumulated 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 2019 will be submitted to the Slovak Parliament.
The Bank Board approved a Multilateral Memorandum of Understanding on Cooperation for Information Sharing Regarding Participants in a Clearing or Settlement System, between each of the European Economic Area competent authorities, the Bank of England, and the United Kingdom’s Prudential Regulation Authority.
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National Bank of Slovakia
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