Bank of Israel 2012 loss narrows to NIS 1.2b

The Bank of Israel has reported a loss of NIS 1.2 billion in 2012 down from a loss of NIS 3.4 billion in 2011. The narrower loss was due to a significant increase in income from capital gains on foreign currency securities in 2012 to about NIS 1.2 billion from NIS 319 million in 2011. Income from realized exchange rate differentials also rose to about NIS 1.7 billion from about NIS 500 million in 2011. The exchange rate differentials were also reflected in the profit and loss statement.

The Bank of Israel's balance sheet at the end of 2012 was about NIS 303 billion down 1.6% from NIS 308 billion at the end of 2011. The major fall of assets was from a fall in the bank's foreign currency assets and in the balance of tradable securities in local currency. On the liabilities and equity side, the fall was due to a mixed trend of changes: on the one hand, a rise in banknotes and coins in circulation and in other foreign currency liabilities, and on the other hand, a fall in the balance of net monetary instruments- makam (central bank bills) and term deposits, and in the balance of the revaluation accounts.

In 2012, wages and employee rights expenses for Bank of Israel employees were NIS 264 million down 4% from NIS 275 million in 2011. Pension and retirement pay expenses were NIS 352 million up 3% from NIS 341 million in 2011.

Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2013