EU Economy - The ECB’s net profit increased in 2016 by €111 million, to €1,193 million .. - ECB

Prees Release -  Financial statements of the ECB for 2016

ECB’s net profit for 2016: €1.19 billion (2015: €1.08 billion)

Net interest income on securities held for monetary policy purposes: €1.04 billion (2015: €0.89 billion)

Interest income on foreign reserve assets: €370 million (2015: €283 million)

Expenditure for supervisory tasks recovered via fees: €382 million (2015: €277 million)

Size of the ECB’s Balance Sheet: €349 billion (2015: €257 billion)

Interim profit distribution to NCBs of €966 million carried out on 31 January 2017; the remainder of the profit (€227 million) will be distributed on 17 February 2017

The Governing Council of the European Central Bank (ECB) has approved the audited financial statements of the ECB for the year ending 31 December 2016.

The ECB’s net profit increased in 2016 by €111 million, to €1,193 million, mainly owing to higher net interest income earned on the asset purchase programme (APP)[1] portfolio and the US dollar portfolio.

Net interest income totalled €1,648 million in 2016 (2015: €1,475 million). Net interest income arising from the APP increased by €275 million, to €435 million, as a result of the continuing securities purchases under this programme. Net interest income earned under the first two covered bond purchase programmes and the Securities Markets Programme (SMP) decreased, as a result of redemptions, to €88 million (2015: €120 million) and €520 million (2015: €609 million) respectively. Interest income on foreign reserve assets increased to €370 million (2015: €283 million) owing to higher interest income earned on the US dollar portfolio.

Realised gains arising from financial operations amounted to €225 million (2015: €214 million).

Write-downs amounted to €148 million (2015: €64 million). The increase in write-downs in 2016 was mainly due to the higher market yields of the securities held in the US dollar portfolio alongside the overall decrease in the market value of these securities. Based on the results of the impairment tests conducted for the securities held in the monetary policy portfolios, no impairment losses have been recorded.

The fees charged to supervised entities amounted to €382 million (2015: €277 million). These fees are charged in order to recover the ECB’s expenditure incurred in relation to its supervisory tasks. The SSM-related expenditure increased in 2016 owing to the increase in the total number of staff working in ECB Banking Supervision, the relocation to new premises and the provision of statistical and IT infrastructure.

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