Press release on the 2022 accounts and annual report

2022 ACCOUNTS

The year 2022 was marked by a turnaround in monetary policy and as a result, for the first time in many years, a decrease in the size of the Banque de France's balance sheet by more than 7%, from EUR 2,037 billion to EUR 1,884 billion. Monetary policy normalisation measures, including the additional opportunities for the early repayment of Targeted Longer-Term Refinancing Operations (TLTRO III) were taken from November onwards. In addition, the asset purchase programmes ceased to contribute to the increase in the size of the balance sheet in mid-2022, as they were limited to reinvestments of payments from maturing securities.

Despite this reduction in the size of the balance sheet, monetary income continued to grow in 2022, to stand at EUR 4.2 billion. This is the net balance of two opposing effects: a – positive – increase in income from securities resulting from asset purchase programmes (APP and PEPP); conversely, a rise in the remuneration of banks' excess liquidity due to the increase in key rates, which only came into play in the second half of the year.

At the same time, non-monetary income (assets held for own account) declined, due in particular to the remuneration of the Treasury account. However, income on financial assets held for own account increased. This was particularly the case for net foreign currency assets, which were up by EUR 0.55 billion, as a result of the rise in the yield on US dollar denominated assets and the appreciation of this currency against the euro in 2022.

Net expenditure from activities were kept very well under control in 2022, despite inflation: it decreased by EUR 21 million to stand at EUR 836 million, i.e. down 2.5% compared to 2021.

After covering operating expenses, net income after tax amounted to EUR 4,412 million. In view of the forthcoming decline in monetary income for several years due to the rise in interest rates, the Banque de France continued to strengthen its fund for general risks in 2022. An allocation of EUR 4,412 million was made to the fund to raise it to EUR 16.4 billion (after allocations of EUR 1.15 billion and EUR 2.8 billion in 2020 and 2021 respectively). The Banque de France's reserves should enable it to maintain balanced profits over the next few years, without requiring any recapitalisation from the government.

Après couverture des charges d’exploitation, le résultat net après impôt s’élève à 4 412 M€. Au regard des diminutions à venir pour quelques années de ses revenus monétaires, du fait de la remontée des taux d’intérêt, la Banque a poursuivi en 2022 le renforcement de son fonds pour risques généraux. Il a ainsi été doté à hauteur de 4 412 M€ pour le porter à 16,4 Mds€ (après des dotations de 1,15 et 2,8 Mds € en 2020 et 2021). Les réserves de la Banque de France devraient lui permettre de maintenir des résultats à l’équilibre au cours des prochaines années, sans solliciter de recapitalisation auprès de l’État actionnaire.

THE TRANSFORMATION OF THE BANQUE DE FRANCE

Significant productivity gains achieved since 2015 

Since the "Ambitions 2020" strategic plan launched in 2016, and thanks to the sound management of its resources, the Banque de France has reduced its net expenditure from activities¹ by 20% over the period 2015-22, i.e. an annual decrease of approximately 3.5% in volume terms, and its workforce by 25% (i.e. a 3,093 decline in full-time equivalent jobs). At the same time, it has expanded the services it provides to the national community.

New services provided to the community

The Banque de France has made all of its work on climate change a priority. It is one of the founding members of the NGFS (Network of Central Banks and Supervisors for the Greening of the Financial System) and launched the "Climate Change Centre" in 2021. It is adapting monetary policy to climate risks and increasingly encouraging the financial sector to take this risk into consideration (climate stress tests, ACPR's Climate and Sustainable Finance Commission). Finally, a climate indicator dedicated to businesses is being developped.

It is also stepping up its actions in favour of the economic sector.

In 2016, the Banque de France was made responsible for steering France’s national financial education strategy (EDUCFI). In 2022, this mission grew significantly, with over 113,000 beneficiaries of EDUCFI actions.

Since 2016, the Banque de France's VSE-SME correspondents have also been present in each French département to assist business leaders at all stages of their company's life.

Finally, since 2018, the credit mediation scheme has been under the aegis of the Banque de France (21,299 eligible mediation cases).

A strategy based on our "4As”

In 2022, the Banque de France updated its "Building 2024 Together" strategic plan. Two new actions were added to the plan to take into account the challenge posed by inflation and, internally, to strengthen the work community in the context of the development of teleworking.

The "Building 2024 Together" strategic plan now provides four solid responses to the new challenges (inflation, financial stability, climate, technological challenges, societal and local challenges, and employer attractiveness), summed up in four action verbs: anchor, anticipate, accompany and attract.

• Anchor

The Banque de France is strengthening its action in favour of price stability by setting an objective of bringing inflation down towards 2% by the end of 2024-25. It is reaffirming its pioneering role in the climate transition and is guaranteeing the stability of the financial system.

• Anticipate 

The Banque de France is giving itself the means to anticipate the rapid changes in its environment by investing in technology and data. It is also preparing itself for and actively participating in financial innovations, in particular the digital euro.

• Accompany 

The Banque de France is strengthening its role in the area of financial inclusion for the most vulnerable members of the public, by rolling out a complete range of services through its network (for example, via the introduction of the single 34 14 telephone number). It also helps business leaders to cope with crises by broadening the range of services offered and facilitating their exchanges with the Banque de France.

• Attract

The Banque de France is implementing an HR strategy to recognise, value and retain its employees. It remains attractive and is renewing its recruitment methods. In 2022, it recruited 513 employees and generalised teleworking.*

¹ Operating expenditure net of income from activities