Central Bank generates €2.3bn profit

It's been offloading bonds linked to assets acquired during Ireland's financial crisis...

Central Bank generates €2.3bn profit

Niall Carson/PA Wire/PA Images

The Central Bank generated a profit of €2.3bn in 2016, of which €1.8bn was transferred to the Exchequer.

It brought in extra income by offloading bonds linked to the winding-up of the Irish Bank Resolution Corporation (IBRC - comprised of Anglo Irish Bank and Irish Nationwide Building Society). 

"The Central Bank’s profits continue to reflect the legacies of the financial crisis both domestically and in the euro area. These factors will diminish over the medium term and the Bank’s profit flows will correspondingly normalise to more modest levels," the bank added in a statement.

As the report was launched, Central Bank Governor, Philip R. Lane commented on the current threats facing the Irish economy:

"While the domestic economic environment continues to improve, external risks remain significant. These include risks relating to the effects of Brexit but also the risks associated with any increase in global protectionism and/or elevated levels of risk aversion in international financial markets," he said.

As property prices continue to rise, Mr Lane also confirmed that the Central Bank will undertake an annual assessment of Ireland's mortgage rules, which will be reviewed in November.