BAKU, Azerbaijan, May 11. The net profit of the European Bank for Reconstruction and Development (EBRD) in 2021 increased substantially, compared to 300 million euros in 2020, and totaled 2.5 billion euros, which is a record figure for the Bank, Trend reports via EBRD’s Annual Review.
According to the report, of this total return, the largest contributor to the appreciation was the equity gain in the amount of 1.7 billion euros.
“While equity markets in general were profitable in 2021, the Bank’s equity investments performed particularly well, significantly outperforming benchmarks applicable to the regions in which the Bank invests,” the report said.
Meanwhile, the EBRD’s lending not only continued to provide a stable revenue stream, but also proved resilient after a significant loss of reserves over 2020.
The Bank’s net interest income increased to 900 million euros, from 800 million euros in 2020, while the net release of provisions amounted to 200 million euros, compared to 500 million euros of charge over the previous year.
“Allowing for income allocations of 80 million euros and movements recorded in the statement of other comprehensive income, the Bank’s reserves increased by 2.4 billion euros to 14.1 billion euros overall. The EBRD continues to be rated AAA with a stable outlook, and was affirmed as such by all three major ratings agencies in 2021,” the report concluded.
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