Report and Accounts 1999 - Accounts for the Year 1999

Accounts for the Year 1999

Profit and loss account for the year 1999

Note			1999 kr.'000	1998 kr.'000
	Income from interest, etc.:
	Interest on foreign assets	5,518,638		5,101,568
1	Interest on loans, etc.	1,008,982		1,678,387
	Interest and dividend on bonds and shares, etc.	2,543,921		2,520,201
	Commission and other income	15,624		3,911
			9,087,165	9,304,067
	Expenditure on interest, etc.:
	Interest on foreign liabilities	65,099		96,656
2	Interest on deposits, etc. and certificates of deposit	4,007,796		4,359,206
			4,072,895	4,455,862
	Net income from interest		5,014,270	4,848,205
	Value adjustments, etc.:
	Value adjustment of gold	635,925		-296,006
	Value adjustment of foreign assets	-2,683,684		844,062
3	Value adjustment of bonds and shares, etc.	-1,033,727		446,539
			-3,081,486	994,595
	Profit from financial items		1,932,784	5,842,800
4	Other income from ordinary operations		84,284	67,671
	Expenses:
5	Staff expenses	297,999		263,454
6	Other expenses	246,926		218,740
			544,925	482,194
	Profit for the year		1,472,143	5,428,277
	Which is allocated as follows:
	Transfer from the Value Adjustment Reserve		-3,081,486	994,595
	Allocation to General Reserves		1,366,089	1,330,105
	Payable to the central government		3,187,540	3,103,577
Pursuant to the Danmarks Nationalbank Act the profit for the year after allocations is payable to the central government.

Balance sheet at 31 December 1999

Note			1999 kr.'000	1998 kr.'000
	Assets
	Stock of gold		4,566,951	3,933,559
	Foreign assets		154,715,301	89,416,246
7	Claims on the International Monetary Fund (IMF)		8,441,266	9,329,804
8	Loans, etc.		72,945,688	40,225,314
9	Bonds and shares, etc.		37,696,381	37,486,642
10	Other assets		3,417,368	2,383,086
	Accruals		19,401	19,247
	Total assets		281,802,356	182,793,898
	Liabilities
	Banknotes		42,429,943	37,198,773
	Coins		3,951,719	3,815,871
	Foreign liabilities		2,424,958	1,252,999
	Counterpart of Special Drawing Rights allocated by the International Monetary Fund (SDR)		1,814,683	1,605,805
11	Deposits, etc.		46,403,909	21,230,616
	Certificates of deposit		99,896,000	34,752,000
	Central government		39,677,540	37,130,934
	Other liabilities		3,445,132	2,333,031
	Total creditors		240,043,884	139,320,029
	General Capital Fund	50,000		50,000
	Statutory Reserve	250,000		250,000
	Value Adjustment Reserve	19,964		3,101,450
	eneral Reserves	41,438,508		40,072,419
	Total net capital		41,758,472	43,473,869
	Total liabilities		281,802,356	182,793,898
12	Off-balance-sheet items:
	Guarantees		475,172	688,508
	Other liabilities		67,994,286	74,533,935
			68,469,458	75,222,443

Notes on the accounts for 1999

		1999 kr.'000	1998 kr.'000
Accounting policies The accounts for 1999 have been prepared in accordance with the same accounting policies as in the previous year, with the exception of the reclassification of items under expenses in the profit and loss account, and the inclusion of banks and mortgage-credit institutes in the same items of the accounts as a consequence of adjustments to the monetary-policy instruments. The comparative figures have been adjusted. The reclassifications do not affect the profit for the year or the value of assets and liabilities.
*Gold* is entered at market value at year-end.
*Assets and liabilities in foreign exchange* are entered at the official exchange rates and the market prices prevailing at year-end.
*Bonds and shares.* The bond portfolio is entered at the official market prices at year-end. Shares are entered at kr. 1 per shareholding.
*Properties, machinery and equipment* are entered as expenditure in the year of acquisition. At the most recent official assessment the bank's properties were valued at kr. 717 million.
Note
1	Interest on loans, etc.
	Interest on loans to domestic banks and mortgage-credit institutes	821,504	1,454,884
	Interest on loans to other borrowers	187,478	223,503
		1,008,982	1,678,387
2	Interest on deposits, etc. and certificates of deposit
	Interest on deposits from domestic banks and mortgage-credit institutes	192,391	211,511
	Interest on the central government's deposits	1,828,169	2,045,415
	Interest to other depositors, etc.	209,620	137,609
	Interest on certificates of deposit	1,777,616	1,964,671
		4,007,796	4,359,206
3	Value adjustment of bonds and shares, etc.
	This includes sales proceeds of kr. 253.1 million on the sale of the bank's shareholding in Finance for Danish Industry.
4	Other income from ordinary operations
	The amount mainly concerns income related to the dissolution of a reserve fund under the International Monetary Fund.
5	Staff expenses
	Salaries and remuneration	215,966	209,917
	Other staff expenses	57,033	53,537
	Allocations to support and severance schemes	25,000	–
		297,999	263,454
6	Other expenses
	Purchases of materials, note production	21,591	17,338
	Purchases of materials, coin production	14,201	17,053
	Purchases of machinery and equipment	47,004	32,832
	Real property, current expenses	57,280	41,987
	Data processing and expenses incidental to the Danish Securities Centre	46,529	59,341
	Other expenses	63,553	53,825
	Income from sale of coin sets and medals, etc.	-3,232	-3,636
		246,926	218,740
7	Claims on the International Monetary Fund (IMF)
	Denmark's IMF quota	16,667,192	9,605,348
	The IMF's holdings of Danish kroner	10,761,718	2,483,765
	Reserve position with the IMF	5,905,474	7,121,583
	Holdings of Special Drawing Rights	2,535,792	2,208,221
		8,441,266	9,329,804
8	Loans, etc.
	Banks and mortgage-credit institutes	70,290,159	37,151,167
	Other borrowers	2,655,529	3,074,147
		72,945,688	40,225,314
9	Bonds and shares, etc. As of 31 December 1999 the estimated market value of the bank's holdings of shares and similar investments, included in the accounts at kr. 1 per shareholding, was kr. 563 million. The portfolio comprises shares, etc. in Bank for International Settlements (BIS), SAS Danmark, GrønlandsBANKEN, Dansk Udviklingsfinansiering, Det Danske Stålvalseværk, Bella Center, Herning Hallerne, ECB capital contribution and SWIFT.
10	Other assets This amount includes outstanding interest of kr. 2,590 million.
11	Deposits, etc.
	Banks and mortgage-credit institutes	38,712,350	17,087,528
	Other depositors	7,691,559	4,143,088
		46,403,909	21,230,616
12	Off-balance-sheet items Guarantees of kr. 475 million mainly comprise a guarantee of kr. 216 million to the Bank for International Settlements, BIS, subject to a re-guarantee from the Kingdom of Denmark, and guarantees concerning the Danish Securities Centre, the Ship Credit Fund of Denmark and the Danish Export Finance Corporation. Moreover, the bank has also concluded a number of guarantees, etc. related to the EU, other central banks, BIS and IMF. The bank provides price guarantees to the central banks of other EU member states in the event of the realisation of Danish securities pledged as collateral in connection with intra-day credit in the TARGET payment system. Other liabilities include unsettled purchases on forward terms and currency and interest-rate swaps.

Audit reports and adoption by The Toard of Directors

Danmarks Nationalbank

Copenhagen, 11 February 2000

Bodil Nyboe Andersen Torben Nielsen Jens Thomsen /Henrik Larsen, Chief Accountant

Report of the internal audit

We have audited the annual accounts of Danmarks Nationalbank for the year 1999 presented by the Management.

Basis of opinion

We have conducted the audit on the basis of the Danmarks Nationalbank Act and Danmarks Nationalbank's by-laws and in accordance with the auditing standards generally accepted in Denmark.

Based on an evaluation of materiality and risk we have assessed whether the Bank's procedures and internal control systems provide adequate security, just as we have tested the basis and documentation for the amounts and other information presented in the annual accounts. This included an assessment of the applied accounting policies and the accounting estimates made, as well as an assessment of the adequacy of the information presented in the annual accounts.

The audit has not resulted in any qualifications.

Opinion

In our opinion the annual accounts have been prepared in accordance with the Danmarks Nationalbank Act and Danmarks Nationalbank's by-laws and reflect the income and expenses for the year and the assets and liabilities of Danmarks Nationalbank as at 31 December 1999.

Copenhagen, 11 February 2000

Peter Jochimsen, Chief Auditor

Report of the external auditors

As auditors appointed by the Royal Bank Commissioner we have audited the annual accounts for the year ended 31 December 1999 of Danmarks Nationalbank.

Basis of opinion

We planned and conducted our audit in continuation of the audit performed by the Bank's internal audit and in accordance with the auditing standards generally accepted in Denmark to obtain reasonable assurance that the annual accounts are free of material misstatements. Based on an evaluation of materiality and risk, we have tested the basis and documentation for the amounts and disclosures in the annual accounts. Our audit included an assessment of the accounting policies applied and estimates made. In addition we have evaluated the overall adequacy of the presentation of information in the annual accounts.

Our audit has not resulted in any qualifications.

Opinion

Copenhagen, 11 February 2000

Svend Ørjan Jensen, State-Authorised Public Accountant Bjarne Fabienke, State-Authorised Public Accountant

These accounts, audited in the manner prescribed by the by-laws of Danmarks Nationalbank, are hereby adopted by the Board of Directors.

Copenhagen, 16 March 2000

Hans E. Zeuthen Helle Bechgaard Michael Dithmer

Elisabeth Arnold Søren Bjerre-Nielsen Pia Christmas-Møller Bent le Fèvre Pernille Blach Hansen

Knud Koch Jensen Jette W. Knudsen Kjeld Larsen Jes Lunde Christian Mejdahl Harry Nicolaisen

B. Frank Nielsen Kirsten Nielsen Karsten Olsen Jan Petersen Anders Fogh Rasmussen

Jens Rostrup-Nielsen Gitte Seeberg Kirsten Stallknecht Helge Sørensen Finn Thorgrimson Margit Vognsen

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Version 1.0 April 2000 Nationalbanken.
Published by Danmarks Nationalbank April 2000, http://www.nationalbanken.dk