Notes to the financial statements
Depreciation rates applied by the Magyar Nemzeti Bank Per cent
Description
31 Dec 2020
Concessions, licences and similar rights
14.5–17
Trademarks patents and similar assets
10–50
Owned and managed buildings
2–3
Vehicles*
20
Telecommunication devices, office equipment, machines
10–50
Office equipment
5–50
Computer hardware
13–33
Emission machinery
5–33
Instruments
20
Bank security devices
2–33
Other equipment and devices
3–50
* Residual value 20 per cent of the vehicles.
The depreciation rates are determined individually based on estimated useful economic life. Depreciation is charged on a straight-line basis in every case. The Bank records no depreciation if the assets do not lose their value in use or if the value increases from year to year, given the particular nature of the assets (e.g. land, works of art, art treasures).
4.2 EFFECTS OF MACROECONOMIC TRENDS ON THE 2020 BALANCE SHEET AND INCOME STATEMENT OF THE MAGYAR NEMZETI BANK In 2020, the MNB recorded a profit of HUF 255.4 billion. The most significant profit item was once again income from exchange rate changes. The balance sheet total according to Hungarian Accounting Standards (HAS) as of 31 December 2020 amounted to HUF 20,303.2 billion, reflecting an increase of HUF 7,955.3 billion (more than 64 per cent) compared to the end-2019 balance. This increase resulted from the central bank’s actions to mitigate the negative economic and financial impacts of the coronavirus pandemic, within the framework of which the MNB restructured and expanded its set of monetary policy instruments. On the assets side, the newly launched collateralised loans with 3-year and 5-year maturity, the government securities and mortgage bonds purchase programme, the new FGS Go! facility, the broadening of the BGS limit and the rise in gold and foreign currency reserves all contributed to the increase in the balance sheet total. On the liabilities side, the volume of forint deposits by credit institutions rose to the largest extent. In addition to the new one-week deposits, the amount of preferential deposits rose with the use of the FGS Go! and BGS. The forint deposits of the central government also increased significantly. At the end of the year, other deposits and liabilities in foreign currency rose as a result of the repos drawn from international organisations (BIS and ECB). The MNB’s equity also increased: it was boosted by the revaluation reserve and the profit for the year and reduced by the dividend paid. The net interest and interest-related result yielded a gain of HUF 40.7 billion, down HUF 8.7 billion compared to the gain in 2019. The forint interest result amounted to HUF 10.7 billion, declining by HUF 19.9 billion compared to the previous year, as the increase in interest income resulting from the new programmes launched by central bank was exceeded by the rise in interest expenses related to liquidity absorption (one-week deposits, preferential deposits) and interest paid on the forint deposits of the central government. A gain of HUF 30 billion was registered in FX interest income, marking an increase of HUF 11.2 billion compared to 2019. Interest income on gold and foreign exchange reserves fell slightly, but the result of derivative transactions for hedging the risk of foreign exchange reserves improved and interest expenses denominated in foreign currency were also lower.
ANNUAL REPORT • 2020
109
