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  • The Bank of Israel fulfills the functions imposed on it as a central bank, and acts to achieve the objectives established for it under the Bank of Israel Law, 5770-2010: maintaining price stability and supporting growth, employment, the reducing of social gaps, and the stability of the financial system. The Bank’s activity to attain its objectives and to carry out its functions is not intended only to maximize profits, but rather to achieve these economy-wide economic goals.
  • The Bank’s balance sheet at the end of 2023 was approximately NIS 855.4 billion, an increase of around NIS 29.1 billion (3.5 percent) compared with the balance at the end of 2022.
  • The increase on the assets side derived primarily from the increase of NIS 47.7 billion in the assets abroad item, due to an increase in the mark to market adjustment and an increase in their shekel value. In contrast, there was a decrease in the balance of assets in Israel, totaling approximately NIS 18.6 billion, mainly due to the repayment of monetary loans extended to banking corporations against the background of the COVID-19 crisis.
  • The balance of the Bank’s liabilities at the end of 2023 was approximately NIS 844.9 billion, a decline of around NIS 28.9 billion (3.3 percent) compared with 2022.

The decrease derived mainly from a decline totaling NIS 23.7 billion in the balance of the monetary absorption instruments—Makam and time deposits—in view of the decline in liquidity surpluses in the market, among other things a result of Bank of Israel activity in the domestic markets.

  • The distribution of the Banks’ profits is determined in accordance with Section 76(a) of the Bank of Israel Law, 5770-2010, which establishes that the Bank’s profits are not to include unrealized profits based on the annual financial report.

After attributing the unrealized gains totaling NIS 46.1 billion to the revaluation reserves, the Bank’s adjusted net profit in accordance with the Law totaled NIS 11.3 billion. This led to a decrease in the Bank’s accumulated deficit of about NIS -113.9 billion at the end of 2023. In accordance with the Law, an accumulated deficit will be offset against future profits to transfer.

  • In 2023, the Bank of Israel recorded an annual profit of NIS 57.4 billion, in accordance with International Financial Reporting Standards (IFRS). The revenue derived mainly from high profit on the investment of the foreign exchange reserves totaling NIS 56.5 billion, mostly mark to market gains from equity holdings and interest income and mark to market gains on bond holdings. This is against the background of higher equity indices around the world, a continued process of income rate increases over the course of the year, and the sharp decline in returns at the end of the year.
  • Gains from exchange rate differentials on balances denominated in foreign currency totaled NIS 28.1 billion, a result of the depreciation during the year in the value of the shekel vis-à-vis major foreign currencies in the reserves portfolio.
  • In contrast, the Bank’s expenses from its activity in Israel, most of which are interest expenses in respect of the monetary absorption instruments—Makam and time deposits—totaled about NIS 25.7 billion this year, the result of an increase in the shekel interest rate.
  • The Bank’s total equity and revaluation reserves was positive in 2023, totaling NIS 10.5 billion, representing an accumulated deficit equity balance of NIS -109.9 billion, while the revaluation reserves in respect of unrealized gains was NIS 120.4 billion. As noted, this balance mainly includes unrealized gains from exchange rate differentials that accumulated on balances denominated in foreign currency and revaluation gains on securities in foreign currency to fair value.