Norges Bank’s annual report and financial statements for 2021
Norges Bank’s total comprehensive income for 2021 showed a profit of NOK 23 billion, compared with a profit of NOK 29 billion in 2020. NOK 11 billion will be transferred to the government as a dividend.
Today, Norges Bank presents its annual report and financial statements for 2021. In addition to the financial statements for 2021, the annual report contains the annual report of the Executive Board, the annual report of the Monetary Policy and Financial Stability Committee and a description of Norges Bank’s sustainability and corporate social responsibility work.
Norges Bank’s total comprehensive income for 2021 showed a profit of NOK 23 billion. Equity investments experienced yet another year of solid advances despite the ongoing pandemic, while rising interest rates in a number of economies contributed to losses from fixed income investments. Total income from financial instruments was NOK 24 billion, including a foreign exchange loss of NOK 0.3 billion. Norges Bank’s financial statements include the financial reporting for the Government Pension Fund Global (GPFG). The GPFG’s total comprehensive income amounted to NOK 1 551 billion, comprising a gain on the portfolio of NOK 1 555 billion net of management costs of NOK 4.6 billion.
The market value of the foreign exchange reserves was NOK 643 billion at year-end 2021, an increase of around NOK 47 billion from year-end 2020. 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 3.8 percent in 2021, in international currency terms. The return on equity investments was 25.1 percent, while the return on fixed income investments was -1.5 percent.
Operating expenses amounted to NOK 5.9 billion in 2021, a decrease from NOK 6.5 billion in 2020. The decrease in expenses primarily reflects lower fees paid to the GPFG’s external managers and lower personnel expenses. Of total operating expenses in 2021, NOK 4.6 billion was related to the management of the GPFG, compared with NOK 5.3 billion in 2020.
Norges Bank’s total comprehensive income for 2021 showed a profit of NOK 23 billion. Equity after allocations totalled NOK 289 billion at year-end. In line with current guidelines, NOK 11 billion will be transferred to the Treasury in 2022 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 2021 for further information.
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