Accounts for the year 2007

KEY FIGURES AND FINANCIAL RATIOS 2003-07

	2007	2006	2005	2004	2003
Profit and loss account (kr. million)
Net income from interest	4,105	3,368	3,616	3,954	4,454
Value adjustments	1,634	-690	1,210	-662	-267
Income from shares, etc.	134	115	68	72	38
Other income	59	48	848	84	3
Expenses, including depreciation	-751	-606	-840	-585	-619
Other expenses	-	-	-	-19	-
Profit for the year	5,181	*2,235*	*4,902*	*2,844*	*3,609*
Allocated as follows:
Allocation to net capital	2,343	-105	1,948	39	508
Payable to the central government	2,837	2,340	2,954	2,805	3,101
	5,181	*2,235*	*4,902*	*2,844*	*3,609*
Balance sheet (kr. million)
Assets
Foreign-exchange-reserve assets	173,367	175,446	214,703	219,264	227,155
Monetary-policy lending	216,794	153,735	135,296	72,635	48,024
Domestic bonds	27,833	28,648	34,329	37,102	39,746
Other assets	6,546	7,043	7,668	8,065	8,169
Total assets	424,540	*364,872*	*391,996*	*337,066*	*323,094*

Liabilities
Banknotes and coins	61,553	59,767	56,217	52,039	49,685
Monetary-policy deposits	209,863	171,984	220,423	167,252	170,043
Central government	89,899	73,789	56,428	60,810	43,981
Foreign-exchange-reserve debt	4,585	3,729	2,391	1,633	2,976
Other liabilities	4,170	3,476	4,305	5,048	6,164
Total creditors	370,070	*312,745*	*339,764*	*286,782*	*272,849*
Total net capital	54,470	*52,127*	*52,232*	*50,284*	*50,245*
Total liabilities	424,540	*364,872*	*391,996*	*337,066*	*323,094*

Financial ratios
Foreign-exchange reserve (kr. million)	168,782	171,717	212,312	217,631	224,179
Net position of banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank (kr. million)	-6,931	18,249	85,127	94,617	122,019
Central government's account (kr. million)	89,899	73,789	56,428	60,810	43,981
Growth in banknotes and coins (per cent)	3.0	6.3	8.0	4.7	4.3
Change in net capital (per cent)	4.5	-0.2	3.9	0.1	1.0
Average no. of staff (converted to full time)	505	513	521	533	553

REPORT ON DANMARKS NATIONALBANK'S ACCOUNTS

Presentation of Danmarks Nationalbank's accounts
The accounts for 2007 have been prepared in accordance with the accounting policies applied in the previous year, cf. p. 42.

The accounts reflect that Danmarks Nationalbank issues banknotes and coins, holds substantial assets comprising the foreign-exchange reserve and functions as banker to the credit institutions and to the central government.

The profit from financial items was kr. 5,738 million, which is kr. 3,060 million higher than in 2006, and the total profit for the year was kr. 5,181 million, i.e. kr. 2,946 million higher than in 2006.

Profit from financial items
Net income from interesttotalled kr. 4,105 million, which is kr. 737 million (21.9 per cent) higher than in 2006. Net income from interest on the foreign-exchange reserve increased by kr. 1,413 million, interest on the domestic bond portfolio increased by kr. 136 million, net interest expenditure on monetary-policy deposits and lending decreased by kr. 198 million, while interest expenditure on the central government's deposit and on deposits from and lending to others rose by kr. 1,010 million.

Value adjustmentsentailed a gain of kr. 1,634 million, representing an increase by kr. 2,324 million on 2006. The price of gold (in Danish kroner) increased by 18 per cent, resulting in a value-adjustment gain of kr. 1,383 million (2006: a gain of kr. 759 million). Market-value and exchange-rate gains on foreign-exchange positions totalled kr. 591 million (2006: a loss of kr. 780 million), and the market-value loss on domestic securities amounted to kr. 340 million (2006: a loss of kr. 669 million).

Factors contributing to the profit from financial items (financial income)
The profit from financial items reflects various factors. As a supplement to the presentation of the accounts, Table 5 and Chart 3 show the key factors contributing to the financial income. It should be emphasised that the breakdown in Table 5 is theoretical and not immediately comparable with the accounts.

FACTORS CONTRIBUTING TO DANMARKS NATIONALBANK'S PROFIT FROM FINANCIAL ITEMS		Table 5
Kr. billion	Profit 2007	Profit 2006
Core income
Seignorage	2.4	1.6
Calculated return on net capital	2.1	1.6
Foreign-exchange reserve and financing thereof	-0.8	-0.7
Exchange-rate adjustment	-0.5	-0.7
Euro	0.1	-0.1
Dollars	-0.6	-0.6
Gold-price adjustment (in dollars)	2.3	1.7
Total core income	5.5	3.5
Income from additional risk
Interest-rate risk, carry income, etc.	0.2	0.6
Interest-rate risk, interest-rate-driven value adjustments	0.0	-1.4
Income from additional risk, total	0.2	-0.8
Profit from financial items	5.7	2.7
Note: Seignorage is calculated on the basis of banknotes and coins in circulation, less decentralised banknote holdings. In this Table, Danmarks Nationalbank's gold stock is included as a dollar asset.

FACTORS CONTRIBUTING TO DANMARKS NATIONALBANK'S PROFIT FROM FINANCIAL ITEMS	Chart 3

Most of Danmarks Nationalbank's financial income reflects its role as monetary authority, from which its core income is generated. The profit also includes additional income resulting from the financial investment risk assumed by Danmarks Nationalbank. Danmarks Nationalbank weighs this risk, which is predominantly interest-rate risk, against the expected return.

Core income reflects the financial income accruing to Danmarks Nationalbank from business transactions purely related to its role as monetary authority. Core income can be broken down into investments at short-term interest rates and the contribution from the foreign-exchange reserve.

Banknotes and coins in circulation and the net capital provide Danmarks Nationalbank with interest-free financing. This financing can be invested at the market rate, providing the most important source of income for Danmarks Nationalbank. The gain from interest-free credit on banknotes and coins in circulation is known as seignorage.

The calculation assumes that Danmarks Nationalbank invests the funds at the short-term monetary-policy interest rate in Denmark . Since monetary-policy interest rates in 2007 were higher on average than in 2006, income from this item increased.

The foreign-exchange reserve is a precondition for Denmark's fixed-exchange-rate policy. Since the short-term interest rate for the investment currencies was lower than the equivalent Danish interest rate, Danmarks Nationalbank, viewed in isolation, had calculated interest expenses on the foreign-exchange reserve corresponding to this spread. The foreign-exchange reserve is predominantly invested in euro. A small share is invested in dollars. The foreign-exchange reserve also includes gold, which does not generate any carry income.

In addition to current expenses in connection with the foreign-exchange reserve, significant adjustments may be seen as a result of fluctuations in exchange rates and the price of gold. For example, when the krone strengthens vis-à-vis another currency, Danmarks Nationalbank incurs a loss because the krone value of the foreign-exchange reserve decreases. Conversely, weakening of the krone entails a gain.

The price of gold (in dollars) rose considerably in 2007, resulting in a substantial gain of kr. 2.3 billion (if the depreciation of the dollar is taken into account, the value in kroner increased by kr. 1.4 billion). This exceeds the gain in 2006, when the increase in the gold price was less pronounced.

The increase in total core income thus primarily reflects higher short-term interest rates and a sharper rise in the price of gold.

Additional income reflects the fact that Danmarks Nationalbank does not place all its funds at the safe short-term interest rate, but also invests in Danish and foreign bonds and makes deposits with foreign banks. This is not directly related to its role as monetary authority, but reflects that such investments are known to yield a higher return. Consequently, earnings are also affected by the development in the yield curves – in Denmark and abroad.

This income includes carry income, stemming from the fact that long-term interest rates are often higher than short-term interest rates. It also reflects various other effects, including the widening of the spread between monetary-policy interest rates and the rate of interest on uncollateralised bank deposits in 2007.

In 2007 the spread between short-term and long-term interest rates was relatively narrow – the curves were relatively flat – and carry income was therefore somewhat lower than in 2006.

In addition to carry income, changes in interest rates may entail interest-rate-driven value adjustments. Taking into account the distribution of investments on markets and maturities, the contribution to the profit from this factor has been calculated at zero, which is an improvement on 2006, when the contribution was negative due to rising interest rates.

Other items
Other income was kr. 12 million higher than in 2006, primarily on account of the winding-up of the estate of VB Finans.

Expenses, including depreciation increased by kr. 146 million as a result of an increase in staff expenses of kr. 18 million (5.8 per cent), a special contribution of kr. 150 million to Danmarks Nationalbank's Pension Fund subject to winding-up to cover Danmarks Nationalbank's pension commitment, and a decrease in other expenses of kr. 22 million (8.5 per cent).

Distribution of the profit for the year
The profit for the year, kr. 5,181 million, is distributed as follows:

An amount corresponding to the value adjustments during the year, kr. 1,634 million, is allocated to the Value Adjustment Reserve, which subsequently amounts to kr. 4,802 million.
20 per cent of the profit excluding value adjustments, equivalent to kr. 709 million, is allocated to the General Reserves, which subsequently amount to kr. 49,368 million.
The remaining amount, i.e. 80 per cent of the profit excluding value adjustments, equivalent to kr. 2,837 million, is payable to the central government.

The balance sheet
The balance-sheet total increased from kr. 364.9 billion to kr. 424.5 billion.

On the assets side, the increase was primarily attributable to growth in monetary-policy lending of kr. 63.1 billion to kr. 216.8 billion, while on the liabilities side monetary-policy deposits increased by kr. 37.9 billion to kr. 209.9 billion. The overall net position of the monetary-policy counterparties (monetary-policy deposits less monetary-policy lending) has thus been reduced by kr. 25.2 billion to net lending of kr. 6.9 billion.

The foreign-exchange reserve decreased by kr. 2.9 billion to kr. 168.8 billion, reflecting, on the assets side, a decline of kr. 2.1 billion in gold, foreign assets and claims on the IMF, and, on the liabilities side, an increase of kr. 0.8 billion in foreign liabilities.

The central government's deposit increased by kr. 16.1 billion to kr. 89.9 billion.

Banknotes and coins rose by kr. 1.8 billion to kr. 61.5 billion. At 3 per cent, this is the lowest growth for five years.

The net capital increased from kr. 52.1 billion to kr. 54.5 billion as a result of profit allocations totalling kr. 2.4 billion.

SIGNATURES

The Board of Governors have today considered and approved the Annual Accounts of Danmarks Nationalbank for 2007.

The Annual Accounts have been prepared in accordance with the Danmarks Nationalbank Act.

It is our opinion that the Annual Accounts give a true and fair view of Danmarks Nationalbank's assets, liabilities and financial position at 31 December 2007 and of the result of Danmarks Nationalbank's operations for the financial year 1 January-31 December 2007.

Copenhagen, 26 February 2008

Nils Bernstein Torben Nielsen Jens Thomsen
Chairman

AUDIT REPORTS

To the Board of Directors

Internal Auditor's Report
I have audited the Accounts of Danmarks Nationalbank for the financial year 1 January-31 December 2007, comprising the Report on Danmarks Nationalbank's Accounts, Signatures, Accounting Policies, Profit and Loss Account, Balance Sheet and Notes. The Accounts have been prepared in accordance with the Danmarks Nationalbank Act.

Danmarks Nationalbank's Committee of Directors and Board of Directors' responsibility for the Accounts
The Committee of Directors and Board of Directors are responsible for the preparation and fair presentation of Accounts that are free from material misstatement, in accordance with the Danmarks Nationalbank Act.

Auditor's responsibility
My responsibility is to express an opinion on the Accounts based on my audit.

Basis of opinion
I have conducted my audit in accordance with Danish Standards on Auditing. Those standards require that I plan and perform the audit to obtain reasonable assurance that the Accounts are free from material misstatement.

The audit included an assessment of the Board of Directors and Committee of Directors' procedures and internal controls that are relevant to Danmarks Nationalbank's preparation and fair presentation of the Accounts, including an assessment of the risk of material misstatement. The audit also included evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee of Directors and the Board of Directors, as well as evaluating the overall presentation of the Accounts.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

My audit has not resulted in any qualification.

Opinion
In my opinion, the Accounts give a true and fair view of Danmarks Nationalbank's assets, liabilities and financial position at 31 December 2007 and of the result of Danmarks Nationalbank's operations for the financial year 1 January-31 December 2007 in accordance with the Danmarks Nationalbank Act.

Copenhagen, 26 February 2008

Jan Birkedal,
Chief Audit Executive

AUDIT REPORTS

To the Board of Directors

Independent Auditors' Report
As auditors appointed by the Minister for Economic and Business Affairs we have audited the Accounts of Danmarks Nationalbank for the financial year 1 January-31 December 2007 comprising the Report on Danmarks Nationalbank's Accounts, Signatures, Accounting Policies, Profit and Loss Account, Balance Sheet and Notes. The Accounts have been prepared in accordance with the Danmarks Nationalbank Act.

Danmarks Nationalbank's Committee of Directors and Board of Directors' responsibility for the Accounts
The Committee of Directors and Board of Directors are responsible for the preparation and fair presentation of these Accounts in accordance with the Danmarks Nationalbank Act. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of Accounts that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors' responsibility and basis of opinion
It is our responsibility to express an opinion on the Accounts based on our audit. We have conducted our audit in accordance with Danish Standards on Auditing. Those standards require that we comply with ethical codes and that we plan and perform the audit to obtain reasonable assurance that the Accounts are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Accounts. The procedures selected depend on the auditor's judgement, including the assessment of the risk of material misstatement in the Accounts, irrespective of whether such material misstatement is due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to Danmarks Nationalbank's preparation and fair presentation of the Accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Danmarks Nationalbank's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee of Directors and Board of Directors, as well as evaluating the overall presentation of the Accounts.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Our audit has not resulted in any qualification.

Opinion
In our opinion, the Accounts give a true and fair view of Danmarks Nationalbank's assets, liabilities and financial position at 31 December 2007, and of the result of Danmarks Nationalbank's operations for the financial year 1 January-31 December 2007, in accordance with the Danmarks Nationalbank Act.

Copenhagen, 26 February 2008

Mona Blønd, Hans Frederik Carøe,
State-Authorised Public Accountant State-Authorised Public Accountant

SIGNATURES

These Accounts, audited in the manner prescribed by the by-laws of Danmarks Nationalbank, are hereby adopted by the Board of Directors at the meeting on 12 March 2008.

As at 1 March 2008 the Board of Directors comprises

Søren Bjerre-Nielsen, Chairman Helle Bechgaard, Deputy Chairman

Peter Bjerregaard Niels Boserup Pia Christmas-Møller Kristian Thulesen Dahl

Michael Dithmer Niels Fog Peter Gæmelke Hans Jensen Niels Due Jensen

Lars-Emil Johansen Jette W. Knudsen Kjeld Larsen Michael Lunn Michael Møller

Kirsten Nielsen Kirsten Nissen Jens Rostrup-Nielsen Hans Chr. Schmidt Kirsten Stallknecht

Inger B. Støjberg Villy Søvndal Helle Thorning-Schmidt Margrethe Vestager

ACCOUNTING POLICIES

General
Danmarks Nationalbank's Accounts for the year 2007 are presented in accordance with the Danmarks Nationalbank Act.

In all significant respects these accounting policies are in accordance with the sound policies for European central banks in the euro area. The main differences relate to unrealised gains on foreign exchange and securities, which are recognised in the profit and loss account in Danmarks Nationalbank's Accounts.

The basic accounting assumptions are economic reality. The effects of transactions and events are recognised when they occur and stated and presented in the accounts for the year which they concern. The Accounts include all material and relevant circumstances, revaluations are shown irrespective of their impact on profits and net capital, and calculation and valuation methods are applied consistently within each category of conditions. When initially recognised, assets and liabilities are stated at cost price. Subsequently, assets and liabilities are valued as described under each accounting item.

Apart from this, the principles for presentation and classification of the individual items in the Accounts remain unchanged from year to year.

The accounting policies applied are unchanged from the previous year.

Conversion of transactions in foreign currency
Transactions in foreign currency are converted to Danish kroner at the exchange rate applying on the transaction date. On the balance-sheet date, all financial assets and liabilities in foreign currency are converted at the exchange rate applying on that date. Both realised and unrealised gains and losses are recognised in the profit and loss account.

Profit and loss account
Interest
Besides income on interest-bearing assets and liabilities, interest income and expenses comprises premiums and discounts on T-bills and certificates of deposit, as well as forward premiums on forward securities and foreign-exchange contracts.

Value adjustments, etc.
Value adjustments comprise market-value adjustments and exchange-rate adjustments on financial assets and liabilities, shares, other capital investments and gold. Both realised and unrealised gains and losses are recognised in the profit and loss account.

Dividend on shares, etc.
Dividend on shares, etc. comprises income from capital investments in listed and unlisted companies, including associated companies. Dividend on shares is recognised in the year when the dividend is announced.

Other income
Other income comprises income from Danmarks Nationalbank's sale of coin sets and medals, as well as other income not relating to Danmarks Nationalbank's primary activities that is not annually recurring.

Expenses
Staff expenses comprise salaries and remuneration for staff, governors and the Committee of Directors, including pension contributions and support, etc. training costs and other staff expenses. Other expenses comprise materials for production of banknotes and coins, etc. current expenses for Danmarks Nationalbank's properties, IT expenses and other expenses.

Balance sheet:
Gold
Gold is stated at the market value on the balance-sheet date.

Financial assets and liabilities
Financial assets and liabilities are stated at the market value on the balance-sheet date.

Repurchase agreements and securities lending, etc.
Securities sold in connection with simultaneous repurchase agreements, and gold and securities made available for lending, are included in Danmarks Nationalbank's respective holdings.

Shares, etc.
Equity investments and equivalent investments and capital investments in associated companies (in which the ownership interest or voting rights are 20 per cent or more) are stated at an estimated market value on the balance-sheet date, not exceeding the acquisition value, however.

Tangible fixed assets
Tangible fixed assets comprise Danmarks Nationalbank's properties, technical building facilities (lifts, electrical installations, etc.), technical production facilities (for banknote and coin production), as well as IT equipment, office equipment and cars.

Tangible fixed assets are stated on the balance sheet at acquisition prices less accumulated depreciation and write-down.

Assets with an acquisition value of less than kr. 100,000 per unit are recognised as expenditure in the year of acquisition.

Depreciation on a linear per-annum basis takes place over the expected useful lives of the assets.

The useful lives are assessed as follows:
Bank properties	100 years
Other properties	25-50 years
Building improvements	25 years
Technical building facilities	10-25 years
Technical production facilities	5-10 years
Other machinery and equipment	3-5 years

Other assets
Other assets include, inter alia, interest receivable, positive net market value of financial derivatives by instrument type, and prepaid expenses.

Financial derivatives such as forward securities and foreign-exchange contracts, interest-rate and currency swaps and futures are stated at market value on the balance-sheet date.

Banknotes and coins in circulation
Banknotes and coins in circulation are stated at their nominal value.

Other liabilities
Other liabilities comprise, inter alia, payables, negative net market value of financial derivatives by instrument type, and uncovered pension commitments and other provisions for guarantees provided.

Financial derivatives such as forward securities and foreign-exchange contracts, interest-rate and currency swaps and futures are stated at market value on the balance-sheet date.

Contingent liabilities
Other liabilities concerning guarantees provided are stated at the estimated value of the payment obligation.

Pension commitments
For defined contribution pension plans, the current premium payments to the pension companies are carried as expenditure in the profit and loss account, and the pension commitment hereafter passes to the pension companies.

For defined benefit pension plans and declarations of support, provisions are made in the accounts of Danmarks Nationalbank for uncovered pension undertakings compiled according to actuarial principles.

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2007

Note		2007	2006
		kr. '000	kr. '000
1	Net income from interest:
	Interest on foreign assets	6,735,537	5,320,054
2	Interest on domestic loans	5,681,288	3,690,915
	Interest on domestic bonds	1,478,036	1,341,924
	Commission and other income	230	749
	Interest income, etc.	13,895,091	*10,353,642*
	Interest on foreign liabilities	62,134	59,538
3	Interest on domestic deposits	9,728,350	6,926,406
	Expenditure on interest, etc.	9,790,484	*6,985,944*
	Net income from interest, total	4,104,607	*3,367,698*
4	Value adjustments, etc.:
	Value adjustment of gold	1,383,317	758,900
5	Value adjustment of foreign assets	590,834	-779,764
6	Value adjustment of domestic securities	-340,361	-668,905
	Value adjustments, etc., total	1,633,790	*-689,769*
	Profit from financial items	5,738,397	*2,677,929*

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2007

Note		2007	2006
		kr. '000	kr. '000
	Profit from financial items	5,738,397	2,677,929
7	Income from shares, etc.	133,606	114,833
8	Other income	59,298	47,606
	Expenses:
9	Staff expenses	327,361	309,406
10	One-off payment to Danmarks Nationalbank's
	Pension Fund subject to winding-up	150,000	-
11	Other expenses	237,662	259,792
	Total expenses	715,023	569,198
12	Depreciation and write-down of tangible fixed assets	35,751	36,036
	Profit for the year	5,180,527	2,235,134
	Distribution of the profit for the year:
	Profit for the year	5,180,527	2,235,134
	Allocation to/from Value Adjustment Reserve	-1,633,790	689,769
		3,546,737	2,924,903
	allocated as follows:
	Allocation to the General Reserves, 20 per cent	709,347	584,981
	Payable to the central government, 80 per cent	2,837,390	2,339,922
		3,546,737	2,924,903

BALANCE SHEET AT 31 DECEMBER 2007

Note		2007	2006
		Kr. '000	Kr. '000
	Assets
13	Gold	9,083,747	7,700,396
14	Foreign assets	161,722,357	164,556,246
15	Claims on the IMF, etc.	2,560,878	3,189,154
	Monetary-policy lending	216,794,000	153,735,000
16	Other lending	2,573,120	3,471,716
17	Domestic bonds	27,833,368	28,648,012
18	Shares, etc.	747,970	747,946
19	Tangible fixed assets	636,317	637,798
20	Other assets	2,566,240	2,164,268
	Accruals	21,598	21,817
	Total assets	424,539,595	*364,872,353*

BALANCE SHEET AT 31 DECEMBER 2007

Note		2007	2006
		Kr. '000	Kr. '000
	Liabilities
21	Banknotes	55,781,697	54,248,974
21	Coins	5,770,979	5,517,568
	Monetary-policy deposits
22	Net current accounts	9,411,684	8,823,577
	Certificates of deposit	200,451,000	163,160,000
23	Other deposits	2,105,706	1,453,696
24	Central government	89,898,808	73,789,214
25	Foreign liabilities	4,585,485	3,728,915
26	Counterpart of Special Drawing Rights allocated by the IMF	1,432,164	1,522,455
27	Other liabilities	631,644	500,663
	Total creditors	370,069,167	*312,745,062*
	General Capital Fund	50,000	50,000
	Statutory Reserves	250,000	250,000
	Value Adjustment Reserve	4,801,931	3,168,141
	General Reserves	49,368,497	48,659,150
28	Total net capital	54,470,428	*52,127,291*
	Total liabilities	424,539,595	*364,872,353*
29	Apportionment of foreign-exchange-reserve assets
30	Financial derivatives for conversion of foreign-exchange exposure
31	Other financial derivatives
32	Contingent liabilities
33	Pension commitments

NOTES TO THE ACCOUNT FOR 2007

Note		2007	2006
		Kr. '000	Kr. '000
1	Net income from interest
	Net income from interest for the year has been substantially influenced by rising interest rates in Denmark and abroad.
	Net income from interest increased from kr. 3,368 million to kr. 4,105 million.
	Interest on foreign assets increased by kr. 1,415 million to kr. 6,736 million. The increase was attributable to considerably higher interest rates, which were partly offset by the decline in the average foreign-exchange reserve.
	Net interest payments to banks and mortgage-credit institutes (interest on current accounts and certificates of deposit less interest on monetary-policy lending) fell by kr. 198 million to kr. 1,687 million. This was attributable to a substantial decline in the banks' and mortgage-credit institutes' average net current-account deposits at Danmarks Nationalbank, which was partly offset by considerably increases in monetary-policy interest rates.
	Interest payable to the central government increased by kr. 1,017 million to kr. 2,315 million as a result of an increase in the discount rate and a higher average deposit.
	Interest on domestic bonds increased by kr. 136 million to kr. 1,478 million due to a higher re-investment rate.
2	Interest on domestic loans
	Interest on monetary-policy lending (collateralised loans)	5,670,842	3,667,891
	Interest on lending to others	10,446	23,024
		5,681,288	*3,690,915*
3	Interest on domestic deposits
	Interest on current accounts	356,446	266,425
	Interest on certificates of deposit	7,001,375	5,286,420
	Interest on the central government's deposits	2,315,116	1,297,964
	Interest to other depositors, etc.	55,413	75,597
		9,728,350	*6,926,406*

Note		2007	2006
		Kr. '000	Kr. '000
4	Value adjustments
	Total value adjustments for the year show a gain of kr. 1,634 million compared with a loss of kr. 690 million in 2006, equivalent to an improvement of kr. 2,324 million.
	Value adjustment of gold entailed a gain of kr. 1,383 million, which is attributable to an 18-per-cent increase in the gold price converted to Danish kroner.
	Value adjustments of foreign assets resulted in a gain of kr. 591 million, comprising a market-value gain of kr. 176 million and an exchange-rate gain of kr. 415 million.
	Value adjustment of domestic securities (bonds) resulted in a loss of kr. 340 million.
5	Value adjustment of foreign assets
	Market-price adjustment	175,949	-948,045
	Exchange-rate adjustment	414,885	168,236
	Value adjustment of shares	-	45
		590,834	-779,764
6	Value adjustment of domestic securities
	Value adjustment of domestic bonds	-340,361	-668,905
		-340,361	-668,905
7	Dividend on shares, etc.
	Danish Ship Finance A/S	64,890	43,470
	PBS Holding	21,377	33,847
	VP Securities Services	29,064	19,376
	Bank for International Settlements (BIS)	18,275	18,140
		133,606	*114,833*
8	Other income
	Sale of coins and medals	35,276	40,865
	Winding-up of the estate of VB Finans	22,982	-
	Reversal of provision, etc. for Himmerlandsbanken	-	6,692
	Other income	1,040	49
		59,298	*47,606*

Note		2007	2006
		Kr. '000	Kr. '000
9	Staff expenses
	Salaries and remuneration	255,271	248,609
	Pension contributions and support	50,602	38,372
	Training	9,672	10,187
	Other staff expenses	11,816	12,238
		327,361	*309,406*
	In 2007 the average number of employees was 505 on a full-time basis (2006: 513).
10	One-off payment to Danmarks Nationalbank's Pension Fund subject to winding-up
	Payment of kr. 150 million to Danmarks Nationalbank's Pension Fund subject to winding-up to cover Danmarks Nationalbank's defined benefit pension commitment. The payment was necessary because of capital losses on the Pension Funds' index-linked bonds.
11	Other expenses
	Materials for banknote production	23,147	27,610
	Materials for coin production	69,800	45,535
	Real property, current expenses	58,127	103,680
	IT expenses	41,771	39,892
	Other expenses	44,817	43,075
		237,662	*259,792*

Note		2007	2006
		Kr. '000	Kr. '000
12	Depreciation and write-down of tangible fixed assets
	Properties	12,380	12,282
	Operating equipment	23,371	23,754
		35,751	*36,036*
13	Gold
	The value of the gold stock was kr. 9.1 billion at year-end, compared with kr. 7.7 billion at the end of 2006. The reason is that the price of gold, calculated in kroner, rose by 18 per cent in 2007. The gold stock was unchanged at 66,550 kg .
14	Foreign assets
	Foreign bonds	53,698,764	65,300,811
	Claims on central banks	1,710,233	1,815,916
	Claims on foreign commercial banks	38,830,424	37,790,772
	Repo transactions against collateral in foreign bonds	67,482,230	59,648,000
	Other foreign assets	706	747
		161,722,357	*164,556,246*
	Investments have primarily been made in government and government-guaranteed bonds, deposits with central banks and commercial banks or lending against government-guaranteed bonds as collateral. Funds are only placed with counterparties or in securities with high credit ratings. The foreign-exchange risk has been converted so that it is primarily in euro.

Note		2007	2006
		Kr. '000	Kr. '000
15	Claims on the IMF, etc.
	Denmark 's IMF quota	13,153,899	13,983,185
	The IMF's holdings of Danish kroner	12,289,368	12,726,817
	Reserve position with the IMF	864,531	*1,256,368*
	Holdings of Special Drawing Rights (SDRs)	1,696,347	1,932,786
		2,560,878	*3,189,154*
	During the year, the IMF made deposits corresponding to SDR 40 million at Danmarks Nationalbank, and Danmarks Nationalbank reduced its holdings of SDRs by SDR 15 million. Claims on the IMF have thus been reduced by SDR 55 million, which, combined with value adjustments during the year, reduces the claim by kr. 0.6 billion to kr. 2.6 billion.
	Accounts with the IMF are stated in SDRs. The SDR exchange rate is calculated on the basis of a basket of currencies, the value of which is determined as a weighted sum of the exchange rates of four currencies: the US dollar (40 per cent), the pound sterling (12 per cent), the euro (38 per cent) and the Japanese yen (10 per cent).
16	Other lending
	Banks and mortgage-credit institutes	2,544,887	3,036,807
	Receivable from associated company	-	400,000
	Other loans	28,233	34,909
		2,573,120	*3,471,716*
	Lending to banks and mortgage-credit institutes relates to the decentralised banknote holdings of these institutions.
17	Domestic bonds
	Danish government bonds	4,600,746	10,998,717
	Mortgage-credit bonds, etc.	21,383,542	15,417,070
	Ship Finance bonds	1,849,080	2,232,225
		27,833,368	*28,648,012*

Note

2007

2006

Kr. '000

Kr. '000

Shares, etc.

Capital investments and equivalent investments

455,408

455,384

Equity investments in associated companies

292,562

292,562

747,970

747,946

Danmarks Nationalbank's portfolio of shares, etc. at 31 December 2007 has an estimated market value of no less than kr. 2.3 billion.

Capital investments and equivalent investments comprise capital subscription to the ECB and shares in the Bank for International Settlements (BIS), SWIFT, PBS Holding, SAS and Exhibition Centre Herning.

Equity investments in associated companies comprise:

	Equity investment/ voting rights	Share of equity¹⁾	Share of result¹⁾
Værdipapir- centralen A/S (VP Securities Services)	24.2 / 24.2 per cent	kr. 54.8 million	kr. 31.0 million
Danish Ship Finance A/S	18.9 / 20.8 per cent	kr. 155.7 million	kr. 70.4 million
¹Based on provisional accounts. Share of result is recognised in the year in which it is announced as dividend.

Tangible fixed assets

Properties

583,777

572,006

Machinery and equipment

52,540

65,792

636,317

637,798

At the most recent official assessment, Danmarks Nationalbank's properties were valued at kr. 1,528 million.

Note		2007	2006
		kr. '000	kr.'000
20	Other assets
	Market value of unsettled foreign-exchange transactions	767,713	251,171
	Accrual of interest rates	1,744,181	1,880,637
	Other	54,346	32,460
		2,566,240	*2,164,268*
21	Banknotes and coins
	Banknotes increased by kr. 1.5 billion to kr. 55.8 billion, while coins increased by kr. 0.3 billion to kr. 5.8 billion. Banknotes include kr. 377 million in Faroese banknotes. At 2.8 per cent, growth in banknotes in 2007 is lower than in previous years.
22	Net current accounts
	Deposits in current accounts and settlement accounts	88,250,848	77,715,972
	Drawing on current accounts	78,839,164	68,892,395
		9,411,684	*8,823,577*
	At 31 December 2007, Danmarks Nationalbank acts as full guarantor to VP Securities Services for kr. 19.2 billion (2006: kr. 29.2 billion) and to the Danish Bankers Association (Sumclearing) for kr. 65.3 billion (2006: kr. 45.7 billion) in connection with the banks and mortgage-credit institutes' payment settlements with 2 January 2008 as the value date.
23	Other deposits
	Banks and mortgage-credit institutes	1,087,401	337,571
	Other deposits	1,018,305	1,116,125
		2,105,706	*1,453,696*
	This item includes the banks' and mortgage-credit institutes' deposits in current accounts in euro and securities settlement accounts totalling kr. 1.1 billion. Other deposits include an account with Danish Ship Finance A/S of kr. 358 million.

Note		2007	2006
		Kr. '000	Kr. '000
24	Central government
	The central government's share of the profit for the year of kr. 2,837 million is included in this amount.
25	Foreign liabilities
	These liabilities comprise deposits in kroner at Danmarks Nationalbank by supranational institutions and other central banks. The European Commission's deposit of kr. 4,567 million is excluded.
26	Counterpart of Special Drawings Rights allocated by the IMF
	No new SDRs were allocated during the year. The decrease in this item of kr. 0.1 billion to kr. 1.4 billion purely reflects value adjustments for the year.
27	Other liabilities
	Market value of other financial derivatives	281,075	268,095
	Payable concerning one-off payment to Danmarks Nationalbank's Pension Fund subject to winding-up	150,000	-
	Other debt	98,028	116,021
	Other	102,541	116,547
		631,644	*500,663*

		General Capital Fund and Statutory Fund	Value Adjustment Fund	General Reserves	Total
		Kr. '000	Kr. '000	Kr. '000	Kr. '000
28	Net capital
	Net capital at 1 January 2007	300,000	3,168,141	48,659,150	52,127,291
	Carried forward from the profit for the year	-	1,633,790	709,347	2,343,137
	Net capital at 31 December 2007	300,000	4,801,931	49,368,497	54,470,428

Note
29	Apportionment of foreign-exchange-reserve assets
	Kr. million
	2007	Total	EUR	USD	GBP	Other
	Foreign-exchange-reserve assets
	Gold	9,084	-	-	-	9,084
	Foreign bonds	53,699	25,822	13,163	6,815	7,899
	Claims on central banks	1,710	1,141	322	44	203
	Claims on foreign commercial banks	38,830	21,645	11,320	4,217	1,648
	Repo transactions	67,482	67,482	-	-	-
	Claims on the IMF	2,561	-	-	-	2,561
		173,366	116,090	24,805	11,076	21,395
	2006
	Foreign-exchange-reserve assets
	Gold	7,700	-	-	-	7,700
	Foreign bonds	65,301	35,903	15,403	6,247	7,748
	Claims on central banks	1,816	688	676	20	432
	Claims on foreign commercial banks	37,791	21,866	8,886	5,331	1,708
	Repo transactions	59,648	59,648	-	-	-
	Claims on the IMF	3,189	-	-	-	3,189
		*175,445*	*118,105*	*24,965*	*11,598*	*20,777*

Note
30	Financial derivatives for conversion of foreign-exchange exposure
	Principals at market value
	Kr. million
	2007	Total	EUR	USD	GBP	Other
	Foreign-exchange contracts:
	Purchase	51,957	51,626	-	-	331
	Sale	-51,191	-	-29,859	-11,331	-10,001
	Unsettled spot currency trades:
	Purchase	614	403	148	-	63
	Sale	-612	-149	-370	-30	-63
		768	51,880	-30,081	-11,361	-9,670
	2006	Total	EUR	USD	GBP	Other
	Foreign-exchange contracts:
	Purchase	52,385	52,124	-	-	261
	Sale	-52,133	-	-29,953	-11,944	-10,236
	Unsettled spot currency trades:
	Purchase	603	261	335	-	7
	Sale	-604	-336	-261	-	-7
		*251*	*52,049*	*-29,879*	*-11,944*	*-9,975*

Note
31	Other financial derivatives
	Principals at market value
	Kr. million
	2007	Total	DKK	EUR	USD	Other
	Currency and interest-rate swaps:
	Purchase	1,309	-	-	1,309	-
	Sale	-1,584	-1,584	-	-	-
	Forward contracts, securities:
	Purchase	6,577	6,577	-	-	-
	Sale	-	-	-	-	-
	Unsettled spot trades, securities:
	Purchase	948	-	898	50	-
	Sale	-32	-	-	-	-32
	Futures, securities:
	Purchase	8	-	8	-	-
	Sale	-892	-	-563	-329	-
		6,334	4,993	343	1,030	-32
	2006	Total	DKK	EUR	USD	Other
	Currency and interest-rate swaps:
	Purchase	1,841	-	-	1,841	-
	Sale	-2,101	-2,101	-	-	-
	Forward contracts, securities:
	Purchase	4,969	4,969	-	-	-
	Sale	-	-	-	-	-
	Unsettled spot trades, securities:
	Purchase	465	-	298	81	86
	Sale	-1,118	-	-1,118	-	-
		*4,056*	*2,868*	*-820*	*1,922*	86

Note		2007	2006
		Kr. '000	Kr. '000
32	Contingent liabilities
	VP Securities Services, share of Guarantee Capital	37,434	48,874
	VP Securities Services, guarantee for errors by other account-holding institutions17,785	22,823
	Other guarantees	1,030	1,030
	Unutilised portion of credit facilities made available to
	the IMF (SDRs)	2,938,655	3,123,922
		2,994,904	*3,196,649*
	In addition, Danmarks Nationalbank has established intervention agreements with the ECB.
33	Pension commitments
	Present and former employees of Danmarks Nationalbank have either a defined contribution or a defined benefit pension plan.
	For defined contribution pension plans Danmarks Nationalbank carries the ongoing premium payments to the pension companies as expenditure. Once the pension contributions for these plans have been paid to the pension companies, Danmarks Nationalbank has no further pension commitments to employees.
	With regard to defined benefit pension plans, Danmarks Nationalbank is obliged to ensure the policyholder a defined pension benefit. For these plans, Danmarks Nationalbank bears the risk concerning the future development in interest rates, wages, inflation, mortality, etc. Danmarks Nationalbank is thus obliged to make the contributions necessary to ensure the fulfilment of the pension undertakings.
	Pension commitments for the defined benefit pension plans are calculated as the capital value of the future benefits payable under the plan. The pension undertakings are based primarily on the salary on retirement. The capital value is calculated on the basis of assumptions concerning the future development in e.g. wage levels, interest rates, inflation and mortality.
	In principle, the defined benefit pension plans are covered in Danmarks Nationalbank's Pension Fund subject to winding-up.

Key figures for the accounts of the Pension Fund:
Pension Fund	2007 kr. million	2006 kr. million

Pension commitments and other liabilities	3,022	3,136
Fair market value of the assets of the Pension Fund	3,573	3,680
Net capital of the Pension Fund	551	544
Solvency requirement of the Pension Fund	121	125

Other defined benefit pension plans are covered in a pension company, while provision is made in the Accounts for a plan concerning the Board of Governors.

Pension commitments for defined benefit pension plans and declarations of support covered in a pension company amount to kr. 56.6 million at 31 December 2007, while the provision on Danmarks Nationalbank's balance sheet amounts to kr. 22.5 million.

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