"The results of the last year (...) have an underlying reduction of the balance sheet. The balance sheet reduces 13 billion euros, explained, essentially, by the financing of credit institutions and by the reduction of monetary policy bonds", pointed out Mário Centeno in the presentation of the report of the Board of Directors of the central bank.

In the presentation, which took place at the Money Museum, in Lisbon, the governor of the BdP recorded that the cost of the liability, which is "very much associated with the interest rates of monetary policy", was low for a long time, but that it has increased significantly since part of 2022.

In the same way, the results of the BdP have also been impacted by the remuneration of the asset, which, despite an increase, did not keep up with the cost of the liability.

In 2023, the BdP presented an operating loss of 1,054 million euros, which the governor of the institution called "historically high".

Even so, this value was null in net terms, with the central bank having resorted to a movement of provisions.

"The provisions that the bank has are a very significant cushion, created over time, to face, precisely, this moment, in which we find ourselves today", explained Mário Centeno.

With the movement of 1,054 million euros, the Provision for General Risks fell, at the end of 2023, to 2,858 million euros, which does not include "other reserves and capital that the bank has, a value close to 2,000 million euros".

Thus, Mário Centeno defended that the provisions constituted are sufficient to respond to the projections that can be made in light of the evolution of the European Central Bank (ECB) interest rates.

"We expect the provisions to be sufficient to face this monetary policy cycle", he recorded.

One of the points highlighted by Mário Centeno was the expenses with the buildings of the Bank of Portugal, which require increased costs, including security. In this sense, he pointed out that the central bank is "working on a logic of reducing costs" and centralising its facilities, which are dispersed throughout the city of Lisbon. Even so, he referred more details to 2025.

According to the 2023 report of the Board of Directors, the amount of gold held by the bank remained at 382.6 tons, but appreciated by 9.3%, to 19,940 million euros.

Present at the presentation, director Hélder Rosalino, pointed out that gold, considered a reserve asset, functions as a 'buffer' and that at the end of April "it appreciated even more".

"The current value is 26 billion euros. Therefore, we currently have a potential appreciation of gold, which means that there is a revaluation reserve, but, naturally, the bank has no intention of selling gold", he explained.

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