Net income from financial instruments in global securities markets related to the Bank's foreign exchange reserves was NOK 11.9 billion in 2011, compared with NOK 13.1 billion in 2010. A portion of this net income is due to the depreciation of the Norwegian krone against most of the major currencies in the Bank's foreign exchange reserves, which when translated into Norwegian kroner, resulted in a foreign exchange gain of NOK 6.2 billion in 2011. In 2010, the appreciation of the krone resulted in a foreign exchange loss of NOK 3.9 billion on the foreign exchange reserves. Gains and losses owing to changes in the krone exchange rate do not influence the international purchasing power of foreign exchange reserves. At the end of 2011, the Bank's foreign exchange reserves amounted to NOK 262.5 billion, NOK 4.1 billion more than at the end of 2010.

After year-end allocations, the Bank's equity in the form of the Adjustment Fund amounts to NOK 72.6 billion. There is no basis for transferring funds from the Transfer Fund to the Treasury.

Foreign exchange reserves constitute Norges Bank's main assets (excluding the Government Pension Fund Global (GPFG), which has no effect on the Bank's results). Norges Bank holds interest-free liabilities in the form of notes and coins in circulation. In addition, the Bank holds domestic deposits from the government and other banks. This balance sheet composition normally generates a positive return over time. The Bank's assets are invested primarily in foreign exchange, whereas its liabilities are primarily in Norwegian kroner. Norges Bank's income primarily comprises net income from financial instruments related to the Bank's foreign exchange reserves. Gains and losses arise from changes in foreign exchange rates, changes in equity prices and changes in interest rates that affect bond prices. Norges Bank's results depend on developments in these parameters, which can cause substantial yearly fluctuations in net income.

As from 2011, the annual financial statements of Norges Bank are prepared in accordance with the Norwegian Accounting Act and the Regulation relating to annual financial statements. The regulation, which is in force as from the 2011 financial year, requires Norges Bank to prepare its financial statements in accordance with the International Financial Reporting Standards (IFRSs) that have been endorsed by the EU (IFRS), but sets out separate requirements for the presentation of the investment portfolio of the GPFG and subsidiaries, which exclusively comprise investments as part of the management of the investment portfolio..The regulation also requires Norges Bank's financial statements to include the financial reporting of the investment portfolio of the GPFG and that they are prepared in accordance with IFRS. This will be presented in a separate press release in connection with the publication of the GPFG annual report for 2011, which will be presented on Friday, 16 March.

See Financial statements 2011 (PDF, 104 kB)

The complete Annual Report will be published at a later time.