At the meeting of the board of directors of the Bank of the Republic that was held this Tuesday, no decision regarding monetary policy was scheduled, so there were no expectations regarding the Issuer’s indicative interest rate.
In this sense, until the end of this month the board of directors will once again make a decision on rates and possibly make an upward adjustment again to continue trying to control inflation.
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The Board of Directors of Banco de la República has a regular schedule of meetings, in which in eight of the 12 meetings it can take, in case there is a need in the opinion of the Board of Directors, decisions on the level of the intervention interest rate.
In the session, the highest decision-making body of the Colombian central bank approved the financial statements of the entity corresponding to the annual exercise of 2022 in which some important changes were presented.
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Both the general auditor before the Bank and the external audit firm KPMGissued an Audit Report with an unqualified opinion thereon.
Previously, the Financial Supervision He had given his authorization to submit said results to the consideration of the board of directors of the Banco de la República.
Thus, the entity reported that in 2022, the Issuer obtained results for $1.77 trillionof which $1.5 trillion corresponded to the profit for the year and $265,000 million to retained earnings from prior periods.
In accordance with the legal framework of the Bank, the remainder of the profits, after discounting the net investment in assets for cultural activity and appropriate statutory reserves, will belong to the Nation.
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In this way and taking into account the above and the results of 2022, and once deducted the losses due to the implementation of IFRS (International Financial Reporting Standards) pending to be settled, the board of directors of Banco de la República approved to transfer to the National Government the sum of $1.6 trillion.
For his part and in response to the request of the mministry of Finance and Public CreditSaid profits will be paid through the delivery of Treasury Securities (TES) of the Bank’s monetary intervention portfolio valued at market prices, in accordance with the provisions of Law 2276 of 2022, which authorizes the Colombian Issuer to make the payment. of 2022 profits in cash or with public debt securities. Said operation, said the entity, is consistent with the monetary management projected by the Bank of the Republic.
The total assets of Banco de la República, at the end of 2022, closed at $339 trillion, with a growth of 14.5% frenyou to 2021when they reached $296 billion.
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The Issuer’s financial statements also show an equity growth of 31.4% between 2021when it was $108 billion and at the end of last year it was $142 billion.
It should be remembered that after the second half of last year, some adjustments were made to the accounting standards of Banco de la República, since until 2021, its bylaws allowed financial instruments to be registered in two categories: amortized cost and fair value with exchange in results.
In this way, the changes that occurred in the international reserves generated by variations in the prices of their investment portfolio were classified under the second category and this affected the final result, regardless of whether the variations in the reserves were made or not. No.
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In 2021, the Bank obtained a profit of $632,000 million, $6.85 trillion less than in 2020. The lower result in 2021 compared to the previous year was due to the significant decrease in the yield of international reserves.
In that year, the remainder of the profits, after discounting the net investment in goods for the cultural activity and the appropriate statutory reserves, will belong to the Nation.
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Thus, on that occasion, in February 2022, It was approved to transfer to the National Government the sum of $556,000 million.
In response to the request of the Ministry of Finance and Public Credit, said profits were paid through the delivery of TES from the Bank’s monetary intervention portfolio valued at market prices, in accordance with the provisions of Law 2159 of 2021, which authorizes the Bank to make the payment of 2021 profits in cash or with public debt securities. This operation was consistent with the monetary management projected by the Bank.
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