The Central Bank of Bosnia and Herzegovina made a profit of 6.85 million BAM in the period January-June 2020, according to the financial report of the central monetary institution, reports eKapija business portal.
In the same period last year, the bank had a profit of 16.67 million BAM and the significant deviation of net profit in relation to the comparable reporting period is a consequence of the application of different calculations in measuring expected credit losses.
The change in the calculation of PD (calculation of the probability of default) resulted in a one-time recognition of gains based on expected credit losses in the amount of 9.82 million BAM in profit or loss and reductions in provisions for expected credit losses for appropriate classes of financial assets on January 1st, 2019.
The bank’s operations continue to be affected by the effects of negative interest rates on deposits with foreign banks and on debt financial instruments, which could not have been avoided in accordance with market conditions and the allowed legal possibilities for investing the Central Bank’s foreign exchange reserves.
As a result of rising market prices, the fair value of the monetary gold that the Central Bank has in the amount of 96,000 ounces has increased.
The value of gold jumped to 297.7 million BAM, after it amounted to 254.1 million BAM on December 31.