Bundesbank posts bumper EUR 676m profit
15 March 2005, FRANKFURT - Germany's central bank said on Tuesday it boosted its profit in 2004 to EUR 676 million, with the entire amount to go to the federal coffers in Berlin.
15 March 2005
FRANKFURT - Germany's central bank said on Tuesday it boosted its profit in 2004 to EUR 676 million, with the entire amount to go to the federal coffers in Berlin.
The profit was much higher than most projections, with some analysts even believing the Bundesbank may have run into the red last year.
The profit was more than double the EUR 248 million which the Bundesbank posted in 2003.
But the EUR 676 million sent to the Finance Ministry in Berlin was well short of the EUR 2 billion which Finance Minister Hans Eichel had been planning.
In 2002, the Bundesbank had achieved a profit of EUR 5.4 billion. But results plunged the next year and again in 2004, amid record-low interest rates and value adjustments made to the bank's currency reserves to reflect the drop in the value of the dollar.
With much of the Bundesbank's reserves tied up in dollars, the decline in the US currency last year had its effect.
The Bundesbank's write-downs totalled EUR 2.4 billion last year, severely cutting into the EUR 3.2 billion net earnings on interest, the German central bank reported.
Gross interest earnings were EUR 4.9 billion, while expenditures came to EUR 1.7 billion in 2004. The bank also said it earned EUR 191 million from gold, dollar and securities trading.
Subject: German news