Press release from the meeting of the Governing Board of the Bank of Slovenia on 17 April 2012

04/17/2012 / Press release

On 17 April 2012 the Governing Board of the Bank of Slovenia approved the Bank of Slovenia’s audited financial statements for 2011, these having been compiled in accordance with the legal basis for accounting and financial reporting within the framework of the European System of Central Banks (the ESCB).

In its income statement for 2011 drawn up in accordance with the Eurosystem’s accounting guidelines, the Bank of Slovenia discloses a surplus in income over expenses in the amount of EUR 17.1 million (2010: EUR 38.2 million).

The main source of the Bank of Slovenia’s income was interest income from its investments in securities and deposits. Claims from monetary policy instruments also yielded significant interest income. Net interest income amounted to EUR 112.2 million in 2011 (2010: EUR 102.6 million).

Realised gains, valuation losses and provisions were negative in the amount of EUR 91.2 million (2010: EUR -61.5 million). Realised gains amounted to EUR 51.2 million (2010: EUR 31.2 million), valuation losses to EUR 131.5 million (2010: EUR 59.1 million), and provisions to EUR 10.9 million (2010: EUR 33.6 million).

Net fees and other income stood at EUR 23.2 million in 2011 (2010: EUR 25.8 million). This amount includes income from the release of provisions to cover risks in Eurosystem monetary policy operations totalling EUR 5.8 million (2010: EUR 8.3 million).

The Bank of Slovenia’s operating costs in 2011 amounted to EUR 27.2 million (2010: EUR 28.7 million).

Pursuant to the second paragraph of Article 50 of the Bank of Slovenia Act, 25% of the financial result (EUR 4.3 million) is earmarked for the state budget. The remainder is transferred to the Bank of Slovenia's general reserves.

Unrealised gains from foreign currencies, securities and gold valuations amounted to EUR 25.3 million in 2011, and amount cumulatively since 2007 to EUR 162.7 million (2010: increase of EUR 20.7 million). These gains are not included in the current financial result, but are disclosed in the valuation accounts on the right side of the balance sheet. They can be used solely for covering future unrealised valuation losses from individual positions.

The Bank of Slovenia’s financial statements for 2011 are due to be published on in May 2012 as part of the annual report.