Norges Bank’s annual financial statements for 2012
For 2012, Norges Bank's total comprehensive income shows a profit of NOK 0.8 billion, compared with a profit of NOK 8.4 billion in 2011.
Net income from financial instruments in global securities markets related to the Bank's foreign exchange reserves was NOK 0.3 billion in 2012, compared with NOK 11.9 billion in 2011. The appreciation of the Norwegian krone against most of the major currencies in the Bank's foreign exchange reserves resulted, when translated into NOK, in a foreign exchange loss of NOK 21.2 billion for 2012. In 2011, the depreciation of the krone resulted in a foreign exchange gain of NOK 6.2 billion on the foreign exchange reserves. Gains and losses owing to changes in the krone exchange rate do not influence the international purchasing power of the foreign exchange reserves. At the end of 2012, the Bank's foreign exchange reserves amounted to NOK 264.5 billion, which is NOK 2.0 billion more than at the end of 2011.
After year-end allocations, the Bank's equity in the form of the Adjustment Fund amounts to NOK 73.3 billion. There is no basis for transferring funds from the Transfer Fund to the Treasury.
The foreign exchange reserves constitute Norges Bank's main assets (excluding the Government Pension Fund Global (GPFG), which has no effect on the Bank's results). Norges Bank holds interest-free liabilities in the form of notes and coins in circulation. In addition, the Bank holds domestic deposits from the government and other banks. This balance sheet composition will normally generate a positive return over time. The Bank's assets are invested primarily in foreign exchange, whereas its liabilities are primarily in NOK. Norges Bank's income primarily comprises net income from financial instruments related to the Bank's foreign exchange reserves. Gains and losses arise from changes in exchange rates, changes in equity prices and changes in interest rates that affect bond prices. Norges Bank's results depend on developments in these parameters, which can cause substantial fluctuations in net income.
Norges Bank's financial statements include the financial reporting for the investment portfolio of the GPFG and subsidiaries that exclusively constitute investments as part of the management of the investment portfolio. This will be presented in a separate press release in connection with the publication of the GPFG annual report for 2012.
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