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Financial Statements<br />
Operating Profit<br />
over the Past Five Years<br />
EUR million<br />
1,750<br />
1,500<br />
1,250<br />
1,000<br />
750<br />
500<br />
250<br />
0<br />
110 108<br />
988 975<br />
423<br />
30<br />
573 558 515<br />
268<br />
242<br />
153<br />
2000 2001 2002 2003 <strong>2004</strong><br />
Transfer to the pension reserve pursuant<br />
to Article 69 paragraph 2 Nationalbank Act<br />
Profit for the year<br />
Central government’s share of profit<br />
Corporate income tax<br />
Source: OeNB.<br />
100<br />
900<br />
1 Net interest income<br />
Netinterestincomerepresents the balance<br />
of interest income and interest<br />
expense. The reduction in interest<br />
income in <strong>2004</strong> resulted partly from<br />
a sharp reduction in the own funds<br />
portfolio following the release of<br />
reserves at the end of 2003 and partly<br />
to the decline in interest rates from<br />
2003.<br />
Net interest income from assets<br />
and liabilities denominated in foreign<br />
currency totaled EUR 256.658 million<br />
(—EUR 68.052 million), that<br />
from euro-denominated assets and<br />
liabilities came to EUR 123.176 million<br />
(—EUR 18.020 million). Monetary<br />
policy refinancing operations<br />
yielded EUR 115.473 million<br />
(+EUR 21.450 million), and the<br />
ECB remunerated the transfer of<br />
foreign reserves with EUR 20.121<br />
million (—EUR 3.407 million).<br />
Income on intra-Eurosystem balances<br />
arising from the allocation of euro<br />
banknotes within the Eurosystem<br />
came to EUR 32.212 million<br />
47<br />
(+EUR 106.688 million). Conversely,<br />
EUR 88.296 million (—EUR<br />
7.947 million) were required to remunerate<br />
minimum reserves. Interest<br />
expenses of EUR 85.637 million<br />
(—EUR 93.947 million) resulted<br />
from TARGET liabilities.<br />
2 Net result of financial<br />
operations, writedowns and<br />
risk provisions<br />
Realized gains or losses from dayto-day<br />
financial operations resulted<br />
from — receivable or payable — differences<br />
between the acquisition cost<br />
and the market value of gold, foreign<br />
currency, securities or other transactions.<br />
Among other things, these<br />
gains include price gains from the sale<br />
of 10 tons of gold.<br />
Net realized gains contracted by<br />
EUR 52.760 million (—16.6%) to<br />
EUR 264.522 million. EUR<br />
168.204 million (—EUR 84.068 million)<br />
stem from gold and foreign<br />
currency operations, EUR 95.219<br />
million (+EUR 28.547 million) from<br />
securities transactions.<br />
The writedowns on financial assets<br />
and positions largely reflect the decline<br />
in market prices of balance<br />
sheet items as at December 31,<br />
<strong>2004</strong>, below the average cost of the<br />
respective currencies or securities.<br />
Foreign currency writedowns came<br />
to EUR 254.179 million (—EUR<br />
429.428 million), securities writedowns<br />
to EUR 8.161 million<br />
(—EUR 5.337 million) and writedowns<br />
on derivatives to EUR 0.211<br />
million (—EUR 0.314 million).<br />
The item transfer to/from provisions<br />
for foreign exchange rate and price<br />
risks resulted from transfers from the<br />
reserve fund for exchange risks that<br />
the OeNB funded up to the end of<br />
1998 with a view to covering unrealized<br />
foreign currency losses of EUR<br />
254.179 million. Thus, in compli-<br />
112 ×<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2004</strong>
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