Bundesbank's profits shrink by nearly 50%

Source: Frankfurter Allgemeine Zeitung

Germany's central bank, Deutsche Bundesbank, said its net profit in 2002 fell by nearly half from the year earlier to EUR5.4 billion. The Bundesbank transferred its total profit to the German federal government, which is prescribed by law to use a third of the money to repay debts that arose from German unification in 1990. The rest can be used by Finance Minister Hans Eichel in his annual budget.

The bank said its interest income fell to EUR4.16 billion from EUR6.6 billion in 2001. That result was depressed by lower benchmark interest rates in the euro zone, set by the European Central Bank. Gold and currency reserves and securities netted EUR2.1 billion in profit in 2002, after totalling EUR5.9 billion a year earlier. The Bundesbank was stripped of its monetary stewardship role in 1999 when the euro became the official currency in Germany.