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At its meeting on 14 March 2011, the General Council of the Bank of Greece approved the Bank’s audited Annual Accounts for the financial year ending 31 December 2010. 

The Bank’s profit for the year 2010 amounted to €190.4 million, compared with €228.2 million in 2009, decreasing by 16.5%. 

The total gross dividend per share that will be proposed to the General Meeting of the Bank’s shareholders for distribution is €2.60 compared with €3.20 in the year 2009. 

Analysis of the Profit and Loss Account for the financial year 2010 

- Income 

The total net income in 2010 stemming from Eurosystem monetary policy operations, interest on the Bank’s portfolios, commissions and other income from domestic and foreign activities amounted to €1,044.5 million, compared with €1,139.5 million in 2009 (decreasing by 8.3%).
In particular: 

● Net interest income and income from financial operations amounted to €831.0 million compared with €833.3 million in 2009, having fallen by 0.3%, 

● Net income from fees and commissions decreased by 19% to €141.5 million, from €174.8 million in 2009, 

● Income from equity shares and participating interests decreased by €54.7 million to €12.3 million, compared to €67 million in 2009, as a result of a decline in distributed profits from the European Central Bank. 

● Finally, the Bank’s income has benefited from the release of €47 million from established provisions, following a release of €45 million in 2009. 

- Expenses 

Total expenses fell by €57.2 million (-6.3%) to €854.1 million in 2010, from €911.3 million in 2009. 

In particular: 

● Operating expenses excluding provisions (staff costs, pensions, depreciation and other expenses) dropped by €57.9 million (-13.2%) to €381.2 million, from €439.1 million in 2009. 

● Provisions increased considerably also in 2010 by €472.9 million to €2,385.4 million. 

The practice of building up high provisions and reserves with a view to strengthening the financial position of the Bank of Greece and enabling it to best fulfil its tasks, is in line with the principle of prudence followed by the ECB and the other central banks of the Eurosystem. 

These provisions are intended to cover: 

● unexpected losses and doubtful claims, 

● foreign exchange and interest rate risks, 

● counterparty risks that may arise out of the performance of the Eurosystem’s main task, which is to define and implement monetary policy in the euro area, 

● general operational risks and liabilities that may arise from the performance of its tasks as the central bank of the country, 

● the Bank’s liabilities to the staff’s social security funds.

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