By Robert Lambourne, GATA:
The Bank for International Settlements yesterday published its 2011-12 annual report:
The bank reported a profit of Special Drawing Rights 758.9 million. A gain of SDR 78.7 million arose on the sale of 3 tonnes of gold (3 tonnes from 119 tonnes, including gold loans) and there was a gain of SDR 34.7 million from the release of a provision set up in prior years on a gold loan that was repaid.
Hence the profit arising from the sale of physical gold and the repayment of gold loans was SDR 113.5 million. Fifteen percent of the bank’s reported profit came from this source.
In addition there was a net revaluation gain on the remaining gold investment assets of SDR 551.8 million. This together with the SDR 113.5 million gold-related profit noted above represented 41 percent of the reported comprehensive income of SDR 1,607.2 million for the year. (Comprehensive income essentially means profit plus unrealised net valuation gains.)