Meeting of the Governing Board of the Bank of Slovenia

03/15/2011 / Press release

1) On 15 March 2011 the Governing Board of the Bank of Slovenia approved the Bank of Slovenia’s audited financial statements for 2010, these having been complied 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 2010 compiled in accordance with the Eurosystem’s accounting guidelines, the Bank of Slovenia is disclosing a surplus of income over expenses in the amount of EUR 38.2 million (2009: EUR 103.6 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 102.6 million in 2010 (2009: EUR 116.8 million).

Realised gains, valuation losses and provisions were negative overall in the amount of EUR 61.5 million (2009: EUR -17.2 million). Realised gains amounted to EUR 31.2 million (2009: EUR 62.8 million), valuation losses to EUR 59.1 million (2009: EUR 15.2 million) and provisions to EUR 33.6 million (2009: EUR 64.9 million).

Fees, commission and other income amounted to EUR 25.8 million in 2010 (2009: EUR 33.6 million). This amount includes income from the release of provisions to cover risks in Eurosystem monetary policy operations totalling EUR 8.3 million (2009: EUR 7.9 million).

The Bank of Slovenia’s operating costs amounted to EUR 28.7 million in 2010 (2009: EUR 29.7 million).

Under the second paragraph of Article 50 of the Bank of Slovenia Act, 25% of the financial result (EUR 9.5 million) is earmarked for the state budget. The remainder is to be transferred to the Bank of Slovenia’s general reserves. Unrealised gains from foreign exchange differences and securities amounted to EUR 20.7 million in 2010 (2009: EUR 66.5 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 foreign currencies or securities positions.

The Bank of Slovenia’s financial statements for 2010 are due to be published on in May 2011 as part of the annual report.

2) The Governing Board approved the decision to market and circulate commemorative 2-euro coins to mark the 100th anniversary of the birth of Franc Rozman - Stane, a national hero. The main features of the design were described in the Official Journal of the European Union (No. 2011/C 57/05 of 23 February 2011. The coins placed into circulation on 21 March 2011 will be on sale at Deželna banka Slovenije, the Bank of Slovenia’s official agent.
3) The Governing Board discussed proposals for the issue of commemorative coins in 2012, and with the planned activities in connection with the coin issues.
4) The Governing Board discussed the plan of activities for the introduction of new quarterly reporting by business entities drawn up by the Bank of Slovenia in conjunction with the SORS and AJPES.