BNR's profit increased by 58% last year, to 3.8 billion RON

The National Bank of Romania recorded, in 2024, a profit of over 3.842 billion RON, 58% (+1.414 billion lei) higher than the previous year (2.428 billion RON), according to the central bank's annual report, published on Monday.Operating expenses were, last year, about 13% below the budgeted level, and their share in total operating expenses was reduced to 8% in 2024, from 11% in 2023.According to the cited source, the operational result of the BNR (excluding expenses with unfavorable differences from the revaluation of some foreign currency holdings, respectively net income from the revaluation of buildings and land) recorded a significant value, namely an operational profit in the amount of 5.647 billion RON."The financial result achieved on December 31, 2024 recorded a significantly favorable evolution compared to the previous year. Thus, in 2024, the BNR recorded a profit of 3,842,740,000 lei, 58% (+1,414,087,000 lei) higher than that recorded in the previous year (2,428,653,000 lei). The following developments are mainly noteworthy: obtaining an operating profit of 5,646,954,000 lei, 16% (+798,533,000 lei) above the operating profit of the previous year (4,848,421,000 lei); recording expenses with unfavorable differences from the revaluation at the market value of securities denominated in foreign currency in the amount of 259,774,000 lei, 0.3% (-690,000 lei) less than the level of similar expenses recorded on December 31, 2023 (260,464,000 lei); recording expenses with unfavorable differences from the revaluation of net assets in foreign currency in the amount of 1,548,606,000 lei, 28% (-610,698,000 lei) than the level of similar expenses recorded on December 31, 2023 (2,159,304,000 lei); recording net income from the revaluation of buildings and land on December 31, 2024 in the amount of 4,166,000 lei (2023: zero)", the report explains.The report also notes that the excess liquidity in the money market continued to grow in the first part of 2024, but subsequently narrowed, more sharply in the fourth quarter, and was further drained by the central bank through the deposit facility. This development led to the recording of significant interest expenses paid. In addition, coupon income was recorded on lei-denominated government securities purchased by the NBR - mainly in 2020 - in order to strengthen structural liquidity in the banking system in order to contribute to the sound financing of the real economy and the public sector.The aforementioned revenues were lower than the interest expenses paid within the framework of monetary policy operations (for the minimum required reserves in lei and the deposit facility), recording a net result related to monetary policy operations for the year 2024, meaning a loss in the amount of 2.533 billion thousand RON."This reflects the costs of pursuing the fundamental objective established by law of ensuring and maintaining price stability," BNR specifies.