The European Central Bank made a net profit of €1,440 million (2012: €995 million) for the year ending December 31, 2013.

The Governing Council decided to make an interim profit distribution, amounting to €1,370 million, to the eurozone national central banks on January 31. It retained €10 million, owing to adjustments to profits earned in previous years, and distributed the remainder of the profit, amounting to €61 million, to the eurozone NCBs on February 21.

Mario Draghi, president of the ECB, said: “The financial result for 2013 reflects the monetary policy stance as well as our commitment to an efficient use of resources and prudent financial management, at a time of increasing responsibilities and tasks entrusted to the ECB.”

The financial result for 2013 reflects the monetary policy stance as well as our commitment to an efficient use of resources and prudent financial management, at a time of increasing responsibilities and tasks entrusted to the ECB

The Governing Council decided to transfer €0.4 million (2012: €1,166 million) to the risk provision, which increased it to the level of its ceiling of €7,530 million as at that date. The purpose of the risk provision is to cover foreign exchange rate, interest rate, credit and gold price risks, which are monitored on an ongoing basis. The size of, and the continuing requirement for, this provision are reviewed annually.

The ECB’s regular income derives mainly from investment earnings on its foreign reserves portfolio and own funds portfolio, from interest income on its eight per cent share of the total euro banknotes in circulation, and from net interest income arising from securities purchased for monetary policy purposes under the Securities Markets Programme (SMP) and the two covered bond purchase programmes.

Net interest income totalled €2,005 million in 2013 (2012: €2,289 million). It included interest income of €406 million earned on the ECB’s share of the total euro banknotes in circulation (2012: €633 million) and net interest income of €962 million (2012: €1,108 million) arising from securities purchased under the SMP, of which €437 million (2012: €555 million) arose from the ECB’s SMP holdings of Greek government bonds.

It also included net interest income of €204 million (2012: €209 million) arising from securities purchased under the two covered bond purchase programmes. The ECB paid remuneration of €192 million (2012: €307 million) to the NCBs on their claims in respect of the foreign reserve assets transferred by them to the ECB, while interest income on foreign reserve assets amounted to €187 million (2012: €229 million).

Realised gains arising from financial operations amounted to €52 million (2012: €319 million). The decrease in realised gains arising from financial operations in 2013 was mainly due to lower realised price gains generated on the US dollar portfolio.

Write-downs amounted to €115 million (2012: €4 million). The significantly higher write-downs last year were mainly due to the overall decrease in the market values of the securities held in the ECB’s US dollar portfolio.

The ECB’s administrative expenses consist of staff costs and all other administrative expenses. Staff costs rose to €241 million (2012: €222 million) on account of higher staff numbers and amounts recognised in connection with the ECB’s pension plans.

Other administrative expenses, comprising rental of premises, professional fees, and other goods and services amounted to €287 million (2012: €242 million) and included depreciation charges on fixed assets amounting to €19 million.

The total size of the ECB’s balance sheet amounted to €174 billion in 2013. The decline of €33 billion from €207 billion in 2012 is in line with the decline in the size of the consolidated balance sheet of the eurosystem.

Key figures

• Net profit for 2013 of €1,440 million (2012: €995 million), after a transfer to the risk provision of €0.4 million (2012: €1,166 million).

• A total of €1,430 million (2012: €998 million) distributed to the national central banks.

• €962 million (2012: €1,108 million) net interest income arising from securities purchased under the Securities Markets Programme.

• €406 million (2012: €633 million) interest income earned on the ECB’s share of the total euro banknotes in circulation.

• Total size of the ECB’s balance sheet amounted to €174 billion (2012: €207 billion).