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


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



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

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    

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
18
 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
1     Based on provisional accounts. Share of result is recognised in the year in which it is announced as dividend.
19
 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.