Norges Bank's profit for 1996 amount to NOK 4 445.0 million before extraordinary items, compared with a profit of NOK 5 615.3 million in 1995.

The decline in the annual result is primarily ascribable to an increase in currency losses and a reduction in capital gains on securities, as a result of the stronger krone exchange rate against those currencies in which the foreign exchange reserves are invested and the fall in interest rates in the money and capital markets through 1996.

Interest payments to the Treasury came to NOK 3 356.6 million, of which NOK 1 142.7 million referred to returns on the immunisation portfolio, ie the share of total foreign exchange reserves which corresponds to the central government debt in size and composition. Interest income on loans to Norwegian banks came to NOK 326.1 million, against NOK 308.7 million in 1995.

At year-end, Norges Bank's net foreign exchange reserves had a market value of NOK 164.5 billion. In 1996, NOK 47.5 billion was transferred to the Government Petroleum Fund, which is managed by Norges Bank.

Net foreign exchange reserves increased by NOK 29.9 billion in 1996. This increase is primarily ascribable to foreign currency purchases for the equivalent of NOK 90.7 billion in connection with exchange rate management, whereas total foreign exchange reserves declined as a result of central government foreign debt payments, transfers to the Government Petroleum Fund and Government Petroleum Guarantee Fund, and losses due to exchange rate fluctuations.

The entire profit of NOK 4.5 million will be allocated to the Adjustment Fund and no allocations will be made to the Transfer Fund for 1996.