Financial Statements

SUMMARY OF THE MAIN POINTS IN THE BIS’S FINANCIAL STATEMENT AND THE PROPOSED RECOMMENDATIONS PRESENTED BY BIS MANAGEMENT

THE BANK’S FINANCIAL RESULTS FOR 2018/19

The net profit for 2018/19 was SDR 461 million (-9, 25% lower than in the previous year)

Mainly due to the following:
1) Decreased in the net interest and valuation income by 2% (2019:SDR 737.4 million)

2) Decreased in the net gain on sales of currency assets at fair value by 136% in 2019 (2019:SDR (10.6) million, 2018: SDR 29)

3) Because the Bank did not sell any own gold during the financial year ended 31 March 2019, therefore there is no gain on sales of gold investment assets.

4) Significant increase in the interest expense in 2019 by 17%.

5) Noticed increase in the operating income by 3% due to the rise in the net transaction movement and the net translation movement in 2019.
PROPOSED DIVIDEND AND ALLOCATION OF 2018/19 PROFIT TO RESERVES
BIS Management proposes the following for dividend and allocation of profit:
SDR millions 2018/19 remark
Dividend 136.7* SDR 245 per share
General reserve fund 16.2 5% of the annual profit after charging the dividend
Free reserve fund 308.2
Total 461.1
*The dividend will be paid on 5- July -2019

Balance sheet 2019 2018 %
Assets 291,095.6 256,489.4 13.5%
Liabilities 271,146.3 237,133.8 14%
Equity 19,949.3 19,355.4 3%

 

Financial Results
SDR millions

2018/19 2017/18
Interest income 237.5 200.4
Interest expense (449.4) (382.8)
Net interest income -211.9 -182.4
Net valuation movement 949.3 936.6
Net interest and valuation income 737.4 754.2
Net fee income 0.9 3.7
Net foreign exchange movement 35.6 (6.4)
Total operating income 773.9 751.5
Operating expense (302.2) (297.1)
Operating profit 471.7 454.4
net gain on sales of currency assets at fair value (10.6) 28.8
Net gain on sales of gold investment assets – 24.9
Net profit 461.1 508.1

There is no critical comments on the accompanying financial statements need to be raised.