Norges Bank’s annual financial statements for 2018
Norges Bank's total comprehensive income for 2018 showed a profit of NOK 15.9 billion, compared with a profit of NOK 27.7 billion in 2017. The main reason for the year's profit was a foreign exchange gain of NOK 19.2 billion owing to a weaker Norwegian krone through 2018.
Net income from financial instruments in international securities markets, before foreign exchange gains/losses, showed a loss of NOK 2.4 billion in 2018, compared with a gain of NOK 30.2 billion in 2017. Equity investments contributed a loss of NOK 4.3 billion, while fixed income investments contributed income of NOK 3.4 billion. The Norwegian krone depreciated against most of the major currencies in the Bank's foreign exchange reserves in 2018. Thus, the foreign currency effect in 2018 was a gain of 19.2 billion, compared with a gain of NOK 1.5 billion in 2017.
The return on the foreign exchange reserves, excluding the petroleum buffer portfolio, was -0.8 percent in 2018, in international currency terms. The return on equity investments was -7.0 percent and 1.0 percent on fixed income investments.
At the end of 2018, the foreign exchange reserves were invested in a fixed income portfolio (80 percent), an equity portfolio (19 percent) and a petroleum buffer portfolio (1 percent). The total market value of the foreign exchange reserves at the end of 2018 was NOK 511.8 billion, a reduction of NOK 0.6 billion from the end of 2017.
Operating expenses amounted to NOK 5.7 billion in 2018, a decline from NOK 5.9 billion in 2017. Of total operating expenses in 2018, NOK 4.5 billion was related to management of the Government Pension Fund Global (GPFG), compared with NOK 4.7 billion in 2017.
Norges Bank's total comprehensive income for 2018 showed a profit of NOK 15.9 billion. Of the Bank's total comprehensive income, NOK 0.2 billion has been transferred to the Adjustment Fund and NOK 15.7 billion to the Transfer Fund. NOK 14.8 billion will be transferred from the Transfer Fund to the Treasury in 2019.
The 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 2018.
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