The South African Reserve Bank (SARB) swung from a loss of R2.04 billion to a profit of R0.8 billion in the 2022/23 financial year.
In its annual financial statements for the year ended 31 March 2023, the SARB announced it had made a profit of R780 million for 2022/23.
The Reserve Bank also saw a significant increase in its net investment income in this financial year, which increased by R4.4 billion to R7.2 billion.
The SARB said this income was derived mainly from foreign investments and accommodation to banks. In addition, “a previously recognised impairment of the investment in associate of R0.6 billion has been reversed in the current year”.
These factors resulted in a profit after taxation of R0.8 billion for the SARB for the year ended 31 March 2023.
The SARB group also reported a profit for the year after a significant loss in the previous period. This group constitutes the Reserve Bank and its subsidiaries, including The South African Mint Company, the South African Bank Note Company, the Corporation for Public Deposits, and the Corporation for Deposit Insurance.
The SARB group reported a R1.88 billion profit for the 2022/23 financial year, following a R1.49 billion loss in 2021/22.
Its annual report states, “The SARB is not driven by a profit motive but by serving the best interest of all South Africans.”
“After allowing for certain provisions, payments of company tax on profits, transfers to reserves and dividend payments, the surplus of the SARB’s earnings are paid to the South African government.”