The Czech National Bank (CNB) has reported a profit of 55.2 billion crowns for the fiscal year 2023, as disclosed in the published data reflecting the central bank’s balance sheet. This preliminary financial result, though subject to potential adjustments from additional operations, marks a significant turnaround from the substantial loss of 411.9 billion crowns recorded in 2022.

The financial situation of the CNB shifted to positive figures in the closing days of the year. As of December 20th, the bank displayed a loss of 55.9 billion crowns, according to the published balance sheet. The reported profit is expected to contribute to the reduction of the accumulated loss of the central bank from previous years, which stood at 487.1 billion crowns at the end of the preceding year.

The CNB’s last reported profit was in 2020, amounting to 91.7 billion crowns. It’s worth noting that the CNB consistently emphasizes that generating profit is not its primary objective. The central bank’s overarching mission revolves around ensuring price and financial stability within the economic landscape.

It’s important to highlight that the presented financial results are preliminary and subject to validation by an external auditor. The finalized financial outcome for the CNB in 2023 will be disclosed in the report on financial management, slated for publication in the spring.

The responsibilities of the CNB encompass a wide spectrum, including the determination of monetary policy, oversight of financial stability, issuance of banknotes and coins, management of monetary circulation, payment relations, and bank settlements. Additionally, the CNB plays a crucial role in supervising the banking sector, capital market, insurance, pension insurance, cooperative savings banks, electronic money institutions, and foreign exchange operations, contributing significantly to the overall financial landscape of the Czech Republic.

Article by Prague Forum