The Bank of Finland concluded its 2024 fiscal year without generating any profit, mirroring the outcome from the prior year, as escalated interest costs on central bank deposits continued to impact earnings. The institution recorded an operational deficit of €1.03 billion, which was entirely balanced by diminishing existing financial reserves.
On Thursday, the Parliamentary Supervisory Council ratified the financial reports, following a suggestion from the Bank’s Board.
“The interest had to be paid on central bank deposits significantly diminished the Bank of Finland’s operating surplus for 2024,” remarked Marja Nykänen, Deputy Governor of the Bank of Finland. “The Bank’s equity remained robust.”
The principal reason for the deficit was the elevated interest being paid on commercial bank deposits at the central bank. This interest expenditure peaked at €3.7 billion in 2024, vastly surpassing the income generated from the Bank’s assets. The net interest revenue logged at €-1.1 billion, reflecting a drop of €64 million compared to 2023.
The European Central Bank (ECB) commenced increasing rates in 2022 to combat inflation, reaching its highest point in September 2023 when the deposit facility rate hit 4.0%. Although rates began to decrease in mid-2024, the average annual deposit rate remained significantly high at 3.73%, constraining the effect of the reductions on the annual outcome.
To counterbalance the deficit, the Bank of Finland utilized its remaining general provision and decreased its provision against real value depreciation by €241 million. Consequently, no operational profit was left.
- I Spend on My Mom, Before Any Other Woman – DDG
American rapper and streamer DDG is in the spotlight after revealing a personal guideline he adheres to when it comes to spending money on women. - The Ban on Sachet Alcohol Should Be Taken Serious – Pharmacist
Pharmacists, represented by the Association of Community Pharmacists of Nigeria (ACPN), have called on the federal government to enforce a complete prohibition on the manufacture and sale of sachet alcohol. - How to Create a Balanced Lifestyle in a Busy World
Life moves fast, and sometimes it feels like we’re constantly trying to catch up. Between work, school, social media, and personal responsibilities, it’s easy to forget to slow down and take care of ourselves. Creating a balanced lifestyle isn’t about doing everything perfectly—it’s about finding what works for you and… Read more: How to Create a Balanced Lifestyle in a Busy World - What To Do With A Naked Man.
What to do with a naked man ??? The art of being sexy comes with spontaneity accompanied by the heat of the moment . Assuming your significant other was to walk into your bedroom, sitting room naked or decided to stay unclothed for the most part of your indoor time What… Read more: What To Do With A Naked Man.
Assets in monetary policy securities, mainly Finnish government bonds, declined from €90 billion to €82 billion throughout the year. While new securities were not acquired, existing bonds persist on the balance sheet due to their long durations.
The Bank emphasized the structural interest rate imbalance on its balance sheet. While numerous assets yield fixed returns, liabilities, such as deposits, are tied to variable interest rates, exposing the institution to persistent interest rate risk.
Central banking profits, encompassing earnings from monetary policy operations across the Eurosystem, amounted to €-937 million, an enhancement from €-1.03 billion in 2023. The operating expenses for the Bank and the Financial Supervisory Authority (FIN-FSA) totaled €73 million.
The comprehensive financial reports were published on 28 March in Finnish, with English and Swedish editions slated for release in April.