Net international reserves are Norges Bank's predominant assets, apart from the Government Pension Fund Global (GPFG), which does not affect the Bank's results. Norges Bank accepts deposits from the central government and banks. The Bank has substantial capital as well as liabilities in the form of notes and coins in circulation. Norges Bank’s assets primarily consist of investments that generate a return. The Bank’s financial statements will therefore show fairly large profits over time. Since the Bank’s assets are largely invested in foreign exchange, and liabilities are in NOK, the financial results recorded will vary with the krone and will be weak when the krone appreciates, as it did last year.
 
Interest income and dividends from foreign investments amounted to NOK 7.6bn in 2010, which is NOK 0.3bn higher than in 2009. The rise in prices in international securities markets in 2010 resulted in gains of NOK 9.4bn, compared with gains of NOK 32.7bn in 2009. Due to the appreciation of the Norwegian krone, exchange losses totalled NOK 5.1bn in 2010, compared with exchange losses of NOK 53.1bn in 2009. Exchange losses due to the appreciation of the krone have no effect on the international purchasing power of the foreign exchange reserves.

At end-2010, Norges Bank’s international reserves amounted to NOK 276.5bn at market value, taking into account repurchase agreements, borrowing and cash collateral. This is NOK 21.0bn more than at end-2009.

After the year’s allocations, the Bank’s capital in the form of the Adjustment Fund amounts to NOK 64.0bn. This is not sufficient for a transfer of funds from the Transfer Fund to the Treasury.

Norges Bank’s annual financial statements include the financial reporting of the GPFG. This will be presented in a press release 18 March 2011.

• Norges Bank Annual report 2010