The Central Bank is reporting a financial profit of €2.6 billion for 2017, and it will transfer surplus income of around €2.1 billion to the Exchequer.
Profit continues to reflect the legacies of the financial crisis both domestically and in the euro area, according to the bank's annual report. It states that headline profits will normalise over the medium term, with the fading out of the temporary impact of the special portfolio of floating rate notes.
Governor Philip Lane said the ongoing economic recovery is expected to continue at Irish, European and global levels in the near term - supported across the eurosystem by the accommodative monetary strategy of the European Central Bank - but that prudential management of macro-financial tail risks is also necessary.
Speaking at the launch of the report, he said,"stronger economic performance is very welcome in terms of its positive impact on living standards and financial stability. However small, highly globalised countries like Ireland are more volatile than larger economies, which means we can grow strongly for extended periods but are especially vulnerable to negative shocks. High stocks of both public and private debt and the inherent volatility of the Irish macro-financial system requires ongoing vigilance."
He said the Central Bank has continued to address the impact of Brexit, highlighting the major challenges and risk facing the Irish economy and the challenges for regulated firms.
"We expect to see an increased number of firms planning to establish a presence in Ireland. We also require that regulated firms already here have in place robust plans to deal with Brexit in whatever shape it materialises, especially those companies with exposure to the United Kingdom. The level of preparation by some firms remains a concern." Prof Lane said considerable progress was made in delivering redress and compensation to over 37,000 customers who were affected by the tracker mortgage controversy . "The completion of the examination - including an assessment of the organisational cultures of the main banks - is a high priority for 2018," he added.We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
