13.2 C
London
Friday, June 14, 2024

NBP financial result for 2022. The president earned more, the NBP under the line

Must read

- Advertisement -


In its financial statements, Narodowy Bank Polski announced that its financial result in 2022 amounted to minus PLN 16.94 billion against PLN 10.97 billion in plus in 2021. According to the bank, the reason for the negative result was an increase in interest rates in Poland and abroad, which lowered the valuation of foreign bonds held by the NBP and increased the costs of monetary policy.

As stated by NBP in the commentary to the report for last year, implementing its public mandate, NBP recorded in 2022: a positive result on transactions in foreign currencies in the amount of PLN 25.5 billion and a negative financial result in the amount of PLN -16,943,670.7 thousand. zloty.

“The reason was the increase in interest rates”

“The reason for this result was growth in general interest rates on the global markets and on the domestic market, which resulted in a decrease in the prices of foreign debt securities held by the NBP and an increase in the costs of monetary policy. It should be emphasized that the negative financial result of NBP does not affect the safety and stability of the banking system, as it does not limit the current functioning and fulfillment of statutory tasks by NBP.

- Advertisement -

As NBP explains, in 2022 the financial results of the most important central banks decreased significantly, and many of them recorded losses. The reason for the lower financial results of central banks in 2022 lies in the specific shape of the market situation in recent years.

“After a period of maintaining low or negative interest rates around the world and active participation of central banks in securities markets, aimed at stimulating economic activity (including as a result of counteracting the COVID-19 pandemic), counteracting the accelerating inflation. On the one hand, the increase in interest rates and yields on global markets caused an increase in the cost of interest on liabilities and on bank accounts. On the other hand, the situation resulted in a decrease in the prices of securities purchased in previous years.

“The increase in the profitability of foreign and domestic assets held by central banks very often did not offset the costs of reduced valuation of assets and losses incurred on transactions in these assets” – added.

In 2021, NBP had a profit of PLN 10.97 billion. Pursuant to the Act on the National Bank of Poland, if the central bank generates a profit, 95% of the of this amount is transferred to the state budget.

Read also: NBP on the rules of contacts between MPC members and investors and analysts

CEO salary

Economist Rafał Mundry, commenting on the information on the financial result of the Polish central bank last year, drew attention to the increase in the salary of NBP President Adam Glapiński at that time.

“NBP President A. Glapiński earned PLN 1.3 million in 2022 (PLN 109,000 per month), 18 percent more than a year earlier,” he noted.

For comparison, in 2021 the gross earnings of the head of NBP amounted to PLN 1,115,739, in 2020 – PLN 946,871, and in 2019 – PLN 794,771.

Read also: Glapiński earned more. We know the remuneration of the head of the NBP

– The Polish custom is that the gross salary is given, but my net salary, what goes to the account, is about PLN 600,000 a year – Glapiński explained during the April press conference.

The head of the NBP also presented data showing that the gross remuneration of the president of the Polish central bank is 3-4 times lower than that of the presidents of commercial banks operating in Poland. – Including and controlled by the state – he stressed.

– The President of the NBP and the National Bank of Poland are not part of the administration. We do not live from the budget, we finance ourselves – added Adam Glapiński.

Main photo source: Shutterstock



Source link

More articles

- Advertisement -

Latest article