Annual Report and Annual Performance Statement for 2016 published

3 May 2017 Press Release

Central Bank of Ireland Annual Report 2016

  • Central Bank reports profit of €2.3bn in 2016 of which €1.8bn has been transferred to the Exchequer.
  • Profits continue to reflect legacy of the financial crisis and these factors will diminish over time.
  • Central Bank continues to assess and analyse implications of Brexit on the economy.

The Central Bank of Ireland today publishes its Annual Report for 2016, which contains the Statement of Accounts, and the Annual Performance Statement for Financial Regulation. In line with the mandate to safeguard stability and protect consumers, the Annual Report provides an overview on key activities and developments in 2016 and the Annual Performance Statement focuses on regulatory activities.

The Central Bank has reported a financial profit of €2.3 billion in 2016, which is a further increase on previous profit figures. After retained earnings, surplus income of approximately €1.8bn has been transferred to the Exchequer. The Central Bank’s profits continue to reflect the legacies of the financial crisis both domestically and in the euro area. These factors will diminish over the medium term and the Bank’s profit flows will correspondingly normalise to more modest levels.

The Annual Performance Statement provides an overview of the financial regulation activities of the Central Bank in 2016. It sets out the key outcomes achieved in the work to restore stability and confidence to the financial system, to build and develop the regulatory framework, and to ensure that the needs and interests of consumers are protected. It also details the key statistics on regulatory activities, including interactions and engagement with firms, enforcement actions and authorisation applications.

In launching the report Governor Philip R. Lane highlighted the key activities undertaken by the Bank over the year.

In line with the Central Bank’s role as the national macroprudential authority he confirmed that the Central Bank will undertake an annual assessment of the mortgage measures, which will be reviewed in November 2017. He also noted the continued work of the Tracker Examination, which remains one of the key priorities for the Bank, as the largest, most complex supervisory review undertaken as part of its consumer protection mandate.

Commenting on risks to the economy he stated that ‘while the domestic economic environment continues to improve, external risks remain significant. These include risks relating to the effects of Brexit but also the risks associated with any increase in global protectionism and/or elevated levels of risk aversion in international financial markets.’

In relation to Brexit he added that the Central Bank continues to assess and analyse the implications on the economy, including the potential for a more diverse range of firms and business models that would require authorisation and supervision.