Quarterly Financial Report – Third Quarter 2021

Overall income grew by 19% in the third quarter of 2021 and by 70% in the first nine months of 2021, compared to the same periods in 2020. The main drivers of this growth have been the increase in revenues from more of financial assets held by the Bank throughout the periods and changes in the discount rates used for the valuation of the Bank’s net defined benefit plans.

Interest income depends on current market conditions, their impact on the interest-bearing assets held on the Bank’s balance sheet, as well as the volume and composition of these assets. The main sources of interest income of the Bank are interest earned on its investments and interest earned on SPRAs. In the third quarter and first nine months of 2021, interest income increased $ 71.4 million (or 7%) and $ 558.6 million (or 23%), respectively, over the course of comparable periods of three and nine months in 2020. This increase is explained by the greater volume of assets held by the Bank during the first three quarters of 2021.

Interest charges consists mainly of interest incurred on deposits held by the Bank. In the third quarter, interest expense decreased $ 33.0 million (or 13%) compared to the same period in 2020 due to fluctuations in deposits held with the Bank. In the first nine months of 2021, interest expense increased by $ 127.7 million (or 23%) compared to the same period in 2020. The increase is mainly due to a higher average amount of deposits held at the Bank, offset by the reduction in the Bank’s key rate in the first quarter of 2020.

Dividend receipts increased by $ 8.7 million in the first nine months of 2021 compared to the same period in 2020. The BIS did not declare a dividend in 2020, but did so in the second quarter of 2021.

Expenses for the third quarter and the first nine months of 2021 increased by 9% and 13%, respectively, compared to the same periods in 2020. This largely reflects the increase in personnel costs and expenses related to banknotes .

  • Personnel costs increased by $ 8.9 million (or 11%) and $ 29.8 million (or 12%) for the three and nine month periods, respectively, compared to the same periods in 2020 due to the following changes:
    • The benefit costs associated with the Bank’s defined benefit plans increased by $ 18.5 million (20%) in the first nine months of the year, mainly due to a decrease in the discount rates used. for their calculation.
    • Salary costs also increased by $ 11.3 million (7%) in the first nine months of the year due to new positions to be filled for strategic initiatives and the annual compensation adjustment.
  • Research, production and processing of banknotes expenses were up $ 1.3 million (or 7 percent) in the third quarter and $ 22.2 million (or 64 percent) more in the first nine months of the year compared to the same periods in 2020. This increase is explained by the increase in the volumes of printed banknotes. The production schedule for banknotes varies from year to year depending on the annual production plan.

Other comprehensive income for the third quarter and the first nine months of 2021 was $ 57.9 million and $ 391.5 million, respectively. For the third quarter, it consists of remeasurement gains of $ 55.4 million on the Bank’s defined benefit plans due to an increase in the discount rate as well as an increase of $ 2.5 million. dollars of the fair value of the Bank’s investment in the BIS. For the nine-month period ended September 30, 2021, other comprehensive income included remeasurement gains of $ 395.8 million, offset by a decrease of $ 4.3 million in the fair value of the investment in the Bank in the BIS.


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