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German central bank reports EUR 4.6 bn profit in 2013

13 March 2014, 12:39 CET
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(FRANKFURT) - The German central bank or Bundesbank clocked up profit of 4.6 billion euros ($6.4 billion) in 2013, all of which would be transferred to government coffers, it said on Thursday.

"The Deutsche Bundesbank posted profit to 4.6 billion euros in 2013 after 664 million euros a year earlier, which, according to Bundesbank law, was transferred in full to the federal government," the central bank said in a statement.

Bundesbank president Jens Weidmann explained that the seven-fold increase in profit -- despite low interest income -- was due to the fact that the central bank did not set aside any additional risk provisions last year.

"The risk situation has eased to some extent," Weidmann said.

However, it would not be appropriate for the Bundesbank to run down the existing risk provisions of 14.4 billion euros just yet "as the lower key interest rates meant that the Bundesbank was likely to post a smaller profit in 2014, thus reducing its available financial resources," Weidmann said.


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