The Bank of Greece's (BoG) contribution to the Greek state's coffers reached 644.3 million euros for 2018, the figure translating into the dividend owed by the central bank to the state.
A detailed press release issued on Monday by the BoG noted:
"It its meeting on 25 February 2019, the General Council of the Bank of Greece approved the Bank’s audited Annual Accounts for the financial year ending 31.12.2018.
The net income of financial year 2018 amounted to €1,199.4 million, while expenses, including provisions, amounted to €541.8 million.
The Bank’s profit for 2018 amounted to €657.6 million, compared with €941.8 million in 2017. This profit shall be distributed in accordance with Article 71 of the Bank’s Statute. After the distribution of dividend to shareholders, an amount of €644.3 million shall be transferred to the Government in accordance with Article 71(1) and (3) of the Bank’s Statute.
The gross dividend per share that will be proposed to the General Meeting of the Bank’s shareholders for distribution is €0.6720, unchanged from the year 2017.
Analysis of the Profit and Loss Account for financial year 2018
• Income
The total net income arising from the implementation of the Eurosystem’s single monetary policy, emergency liquidity assistance (ELA), interest on the Bank's portfolios, commissions and other income from domestic and foreign operations amounted to €1,199.4 million, having decreased by 16.8% from €1,441.7 million in 2017. This change was mainly due to credit institutions’ reduced recourse to ELA funding by the Bank of Greece.
Specifically:
- Net interest income, income from financial operations and the pooling of the Eurosystem’s monetary income amounted to €1,040.9 million, having decreased by 20.6% from €1,310.8 million in 2017.
- Net income from fees and commissions increased by 14.4% to €89.2 million, from €78.0 million in 2017.
- Income from equity shares and participating interests increased by €17.9 million and amounted to €56.8 million from €38.9 million in 2017.
- Finally, the Bank’s other income amounted to €12.5 million, having decreased by 10.7% from €14.0 million in 2017.
• Expenses
Total expenses excluding provisions (staff costs and pension benefit expenses, depreciation, other administrative expenses and other expenses) amounted to €343.4 million, from €391.3 million in 2017, having decreased by €47.9 million. The decrease largely reflects the fact that 2017 expenses included a non-recurring charge of €52.4 million, stemming primarily from the Bank’s payment of the extraordinary levies referred to in Laws 3808/2009 and 3845/2010 for the years 2008 and 2009 respectively, as well as relevant surcharges.
Provisions in financial year 2018 amounted to €198.4 million. Adequate provisioning aims to strengthen the Bank’s financial position, so that it can best fulfil its mandate and address the risks to which it is exposed.
Total accumulated provisions, as at 31 December 2018, amounted to €7,805.8 million."
