Central Bank poised to make a €1.4bn profit
The Central Bank will report a record year of profits this month of over €1.4bn. The profit for its year to December 31, 2012, is €200m more than the year before and €560m more than in 2010.
The bank is expected to return a surplus to the Exchequer of over €1.02bn, or over €50m more than the previous year. The rise in profits was driven by increased income from exceptional liquidity facilities advanced to domestic credit institutions outside and inside the euro system's monetary policy operations rose.
The Central Bank will reveal its bumper year later this month when it publishes its annual report. The report will provide an overview of the steps taken during the year to resolve Ireland's financial crisis and deliver an update on Irish bank restructuring, liquidity support and consumer protection issues.
The issue of how the Central Bank believes banks are dealing with borrowers in or facing arrears will be closely watched in the report.
The bank is also expected to make a comment on the controversial decision to liquidate IBRC, formerly Anglo Irish Bank and Irish Nationwide. A number of creditors of the bank have questioned the legality of this decision by the State.
The bank is also expected to deliver its annual performance statement on financial regulation, detailing at a high level its various actions during the year.
Meanwhile, Blackrock International has met with Central Bank officials in recent weeks to set out the terms of the next Irish banking stress tests. These test are expected to be completed in the second half of this year.