Norges Bank’s annual financial statements for 2016
Norges Bank's total comprehensive income for 2016 shows a loss of NOK 3 billion, compared with a profit of NOK 67 billion in 2015. The main reason for this year's loss was a foreign exchange loss of NOK 20 billion resulting from an appreciation of the krone through 2016.
Net income from financial instruments in international securities markets showed a loss of NOK 2 billion in 2016, compared with a gain of NOK 67 billion in 2015. Equity investments contributed an income of NOK 15 billion, while fixed income investments contributed NOK 4 billion. However, the krone appreciated against most of the major currencies in the Bank's foreign exchange reserves in 2016, resulting in a foreign exchange loss of NOK 20 billion in 2016, while the reserves posted a foreign exchange gain of NOK 55 billion in 2015. At the end of 2016, the Bank's net foreign exchange reserves amounted to NOK 480 billion, an increase of NOK 12 billion from end-2015.
The return on the foreign exchange reserves, excluding the petroleum buffer portfolio, was 4.6 percent in 2016, measured in international currency. The return on equity investments was 10.5 percent and 1.2 percent for fixed income investments. At the end of 2016, the foreign exchange reserves were invested in a fixed income portfolio (59 percent), an equity portfolio (37 percent) and a petroleum buffer portfolio (4 percent).
Norges Bank's total comprehensive income in 2016 showed a loss of NOK 3 billion. In line with the current guidelines for provisions and allocations of Norges Bank's total comprehensive income, the Bank's loss was covered by the Adjustment Fund. In keeping with the same guidelines, a third of the Transfer Fund is transferred annually to the Treasury. The Transfer Fund stood at NOK 53 billion before allocations of the Bank's total comprehensive income for 2016 and is not affected by this year's allocations. NOK 18 billion will be transferred to the Treasury in 2017. Norges Bank's equity after the transfer to the Treasury stands at NOK 225 billion.
The Government Pension Fund Global (GPFG) is managed by Norges Bank, and Norges Bank's financial statements include the financial reporting for the GPFG. Financial reporting for the GPFG is also included in the GPFG annual report. See the press release issued in connection with the publication of the GPFG annual report for 2016.
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