EBRD records profit of more than €2 billion
The European Bank for Reconstruction and Development (EBRD) announced today that it recorded a profit of €2.1 billion in 2023, as per its released results for the year, Azernews reports.
This marks a robust performance, nearly matching the record profits of €2.5 billion achieved in 2021. The notable success can be largely attributed to the strong performance of equity investments across the Bank's operational regions.
As a primary investor in the private sector, the EBRD focuses on facilitating the transition to market economies. In 2023, its equity investments yielded a gain of €1.0 billion, a significant turnaround from the €1.1 billion loss recorded in 2022. Despite the overall profitability of equity markets, the Bank's investments outperformed, surpassing benchmarks applicable to its invested regions.
The rise in interest rates notably boosted the EBRD's return on capital, soaring fivefold to €0.5 billion in 2023 from €0.1 billion in the previous year. Meanwhile, loan investments remained steady, providing a consistent flow of interest income amounting to €1.1 billion, slightly down from €1.2 billion in 2022. The proportion of non-performing loans remained stable at 7.9 percent, with an additional gain of €0.1 billion attributed to a net release of impairment charges.
By the end of 2023, the EBRD's capital base stood at €22.3 billion, showing a notable increase from €19.3 billion in 2022. Despite economic challenges arising from the conflict in Ukraine, the Bank maintains its triple-A rating with a stable outlook, reaffirmed by all three major credit ratings agencies throughout the year. Looking ahead, the EBRD aims to sustain its robust capitalization and utilize it effectively to support the transition efforts of its clients and operational countries.
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