ECB profit increased in 2018
Photo by Adobe Stock

Financial Statements of the ECB for 2018

Press Release Provided By ECB

ECB profit increased by €0.3 billion to €1.6 billion in 2018 (2017: €1.3 billion) and is distributed in full to national central banks
Net interest income on securities held for monetary policy purposes: €1.2 billion (2017: €1.1 billion)
ECB’s Balance Sheet grew to €447 billion (2017: €414 billion)
The European Central Bank’s (ECB’s) audited financial statements for 2018 show that the profit for the year increased by €301 million, to €1,575 million, mainly as a result of higher net interest income earned on the US dollar portfolio and on the asset purchase programme (APP) portfolio.

Net interest income totalled €2,277 million in 2018 (2017: €1,812 million). Net interest income on foreign reserve assets increased to €862 million (2017: €534 million) owing to higher interest income earned on the US dollar portfolio. Net interest income arising from the APP increased by €245 million, to €820 million, as a result of the continuing securities purchases under this programme and the higher yields of the securities acquired during the year compared to the historical yield of the portfolio. Conversely, as a result of redemptions, net interest income earned under the Securities Markets Programme (SMP) decreased to €384 million (2017: €447 million). The ECB’s interest income from its SMP holdings of Greek government bonds amounted to €127 million (2017: €154 million).

Realised losses arising from financial operations amounted to €77 million (2017: realised gains €161 million), owing to realised price losses generated in the US dollar portfolio.

Write-downs amounted to €69 million (2017: €105 million), primarily as a result of a decrease in the market value of a number of securities held in the US dollar portfolio alongside an increase in the corresponding yields.

Impairment tests are conducted on the securities held by the ECB in its monetary policy portfolios, which are valued at amortised cost (subject to impairment). Based on the results of these tests, no impairment losses have been recorded for these portfolios.

The fees charged to supervised entities amounted to €518 million (2017: €437 million). These fees are charged in order to recover expenses incurred by the ECB in the performance of its supervisory tasks. The increase in 2018 relates predominantly to work associated with comprehensive assessments and EBA stress testing.

Total staff costs decreased to €515 million (2017: €535 million) owing to a non-recurring charge included in 2017 in relation to post-employment, other-long term and termination benefits for ECB staff. Other administrative expenses increased to €599 million (2017: €539 million), mainly owing to the increase in expenses related to the ECB’s supervisory tasks.

The ECB’s net profit is distributed to the euro area national central banks (NCBs). The Governing Council decided to make an interim profit distribution, amounting to €1,191 million, to the euro area NCBs on 31 January 2019. At yesterday’s meeting, the Governing Council decided to distribute the remainder of the profit, amounting to €384 million, on 22 February 2019.

The total size of the ECB’s Balance Sheet increased by 8% to €447 billion (2017: €414 billion). This increase was mainly due to the securities purchased under the APP.

The continuing purchases of securities under the APP led to an increase in the consolidated balance sheet of the Eurosystem, which rose by 5% to €4,702 billion (2017: €4,468 billion). The Eurosystem’s holdings of securities held for monetary policy purposes increased by €265 billion to €2,651 billion (2017: €2,386 billion). The APP holdings increased by €284 billion to €2,570 billion, while securities held under the first two covered bond purchase programmes and the SMP declined by €2 billion and €16 billion respectively owing to redemptions.

For media queries, please contact William Lelieveldt, tel.: +49 69 1344 7316.

Notes:

Further details on the financial accounting and reporting policies of the ECB and the Eurosystem and on the ECB’s annual accounts can be found on the ECB’s website under the Accounting and reporting and Annual accounts sections, respectively.
Eurosystem SMP holdings: The table below presents the breakdown by issuer country of the outstanding amounts of the Eurosystem’s SMP holdings as at 31 December 2018.

Total Eurosystem SMP holdings by issuer country as at 31 December 2018

Issuer Country Nominal amount
(EUR billions)
Book Value [1]
(EUR billions)
Average remaining maturity
(years)
Ireland 5.8 5.7 1.7
Greece 8.3 7.8 2.1
spain 14.2 14.2 1.7
Italy 40.7 40.2 1.5
Portugal 5.3 5.3 1.6
Total[2] 74.3 73.1 1.7

[1]SMP holdings are valued at amortised cost.

[2]Totals may not add up due to rounding.

European Central Bank
Directorate General Communications
Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany
Tel.: +49 69 1344 7455, E-mail: media@ecb.europa.eu
Website: www.ecb.europa.eu
Source:

Financial statements of the ECB for 2018

The European Central Bank (ECB) is the central bank of the 19 European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

Check Also

US Inflation Rate Drops Fueling Speculation of a Fed Rate Cut

A Fed rate cut of about 25-basis points is more in-line with the hints the Fed Chair was signaling.

US Fed Rate Cut Sentiment Thwarted, Euro Free Falling

The ECB is hell bent on keeping the value of the Euro as low as possible in order to compete with Trump’s USD for bottom-dwelling supremacy. Going forward, an interest rate decision either by the ECB or the FOMC in the not so distant future favoring the Euro could cause a rapid rise of the currency pair back up toward the 1.1400 level.

Euro Image

EUR-USD Bullish on US-China Raging Trade War

The Mstardom Finance trading group is predicting that the next short-term target for the EUR/USD currency pair is 1.1305. The pair has met support at the 1.1253 area and resistance at the 1.1263 area. This price action is inline with our calculated and predicted price movements. If our bullish prediction doesn't hold, then a pullback to the 1.1216 area is expected.

communication via hand phone

Global Clinical Alarm Management Market to 2023 with Koninklijke Philips, Vocera, Ascom, Spok, Bernoulli, Connexall, Mobile Heartbeat, GE Healthcare, Capsule Technologie & Masimo Dominating

In 2018, North America is expected to account for the largest share of the global clinical alarm management market. The large share of this region can be attributed to the increasing cases of alarm fatigue and initiatives by government bodies to curtail the effects of alarm fatigue and the increasing need for integrated healthcare IT systems to ensure reliability, efficient maintenance of data, data integrity, and timely availability of patient data to authorized healthcare professionals.

Let your money work for you

SS&C GlobeOp Hedge Fund Performance Index and Capital Movement; IndexSS&C GlobeOp Hedge Fund Performance Index: February performance 1.24%; Capital Movement Index: March net flows advance 0.21%

The SS&C GlobeOp Hedge Fund Performance Index is an asset-weighted, independent monthly window on hedge fund performance. On the ninth business day of each month it provides a flash estimate of the gross aggregate performance of funds for which SS&C GlobeOp provides monthly administration services on the SS&C GlobeOp platform. Interim and final values, both gross and net, are provided in each of the two following months, respectively. Online data can be segmented by gross and net performance, and by time periods. The SS&C GlobeOp Hedge Fund Performance Index is transparent, consistent in data processing, and free from selection or survivorship bias. Its inception date is January 1, 2006.

Image of the US Economy

The Conference Board Leading Economic Index® (LEI) for the U.S. Increased; Economy to Continue Expanding in Near-Term

The ten components of The Conference Board Leading Economic Index® for the U.S. include:Average weekly hours, manufacturingAverage weekly initial claims for unemployment insuranceManufacturers' new orders, consumer goods and materialsISM® Index of New OrdersManufacturers' new orders, nondefense capital goods excluding aircraft ordersBuilding permits, new private housing unitsStock prices, 500 common stocksLeading Credit Index™Interest rate spread, 10-year Treasury bonds less federal fundsAverage consumer expectations for business conditionsFor full press release and technical notes:http://www.conference-board.org/data/bcicountry.cfm?cid=1

Growth stock image

Willamette Valley Vineyards Posts a Profit for 2018

Jim Bernau, Founder and President of the winery, said "We are pleased Income from Operations was up 15% for the year. Earnings are affected by the dividend cost as we raised the money needed for the planned winery near Dundee prior to construction. As we are able to deploy these development funds, we expect the projected earnings to more than offset the higher dividend costs."

%d bloggers like this: