Norges Bank’s annual report and financial statements for 2020
Norges Bank’s total comprehensive income for 2020 showed a profit of NOK 28.8 billion, compared with a profit of NOK 43.8 billion in 2019. NOK 15.2 billion will be transferred to the government as a dividend.
Today, Norges Bank presents its annual report and financial statements for 2020, which contain a description of Norges Bank’s operations, the annual report of the Executive Board, the annual report of the Monetary Policy and Financial Stability Committee and Norges Bank’s financial statements.
Norges Bank’s total comprehensive income for 2020 showed a profit of NOK 28.8 billion. Income from equity and fixed income investments in the foreign exchange reserves was approximately NOK 30.7 billion, owing in part to a rise in relevant equity markets and falling global interest rates. Furthermore, movements in the krone exchange rate through 2020 resulted in a foreign exchange loss of NOK 0.5 billion. Norges Bank’s financial statements include the financial reporting for the Government Pension Fund Global (GPFG). The GPFG returned NOK 1 070 billion in 2020.
The market value of the foreign exchange reserves at year-end 2020 was NOK 595.9 billion, an increase of NOK 49.5 billion from year-end 2019. The foreign exchange reserves are primarily invested in sovereign bonds, listed equities and cash.
The return on the foreign exchange reserves, excluding the petroleum buffer portfolio, was 5.9 percent in 2020, in international currency terms. The return on equity investments was 14.9 percent and 3.1 percent on fixed income investments.
Operating expenses amounted to NOK 6.5 billion in 2020, an increase from NOK 5.4 billion in 2019. The rise in costs primarily reflects higher fees paid to external managers of the GPFG amounting to NOK 1.1 billion. Of total operating expenses in 2020, NOK 5.3 billion was related to the management of the GPFG, compared with NOK 4.3 billion in 2019.
Norges Bank’s total comprehensive income for 2020 showed a profit of NOK 28.8 billion. Equity after allocations totalled NOK 276.8 billion at year-end. In line with current guidelines, NOK 15.2 billion will be transferred to the Treasury in 2021 Q1.
The financial reporting for the GPFG is presented in the GPFG annual report. See the press release issued in connection with the publication of the GPFG annual report for 2020 for further information.
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