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The Central Bank of Ecuador recorded the highest level of net profits since the beginning of dollarization

Friday, 09 February 2024 08:58

The Central Bank of Ecuador (BCE), in compliance with the provisions of Article 31 of the Organic Monetary and Financial Code (COMF), published its audited financial statements for the fiscal year 2023. Furthermore, in accordance with Article 30 of the aforementioned Code, the financial statements included the opinion of the independent external auditor who issued an opinion of reasonableness, without reservations.

Thus, the BCE closed the previous year with net profits of USD 683.4 millions, marking the highest level recorded since the beginning of dollarization. Additionally, it is worth noting that this level of profit reached in 2023 doubled the amount recorded in 2022 and tripled the value reached in 2021. The factors that contributed to this record profit were: the technical, transparent, and risk-focused management of the institution; the high level of International Reserves during the first half of 2023; the increase in international interest rates; the adequate management of BCE[1] investments; and the recovery of legal contingencies due to a correct legal defense.

Net Profit BCE
(USD Millions)

grafico en 1 05022024

Following the successful completion of the external audit of the BCE's financial statements as of December 31, 2023, the Monetary Policy and Regulation Board decided that a portion of the distributable profits would be allocated to strengthening the institution's assets through an increase in the General Reserve Fund, thereby reaching 500% of the authorized and paid-up capital of the BCE, in compliance with the mandate established in Article 30.1 of the COMF. The remainder of these profits, amounting to USD 508.9 millions, will be transferred to the Single Account of the National Treasury. This profit transferred to the Ministry of Economy and Finance is the highest since the beginning of dollarization.

The solid financial results of the BCE in 2023 are the result of an institutional strengthening process and the implementation of international best practices in central banking, which has allowed safeguarding of public deposits managed by the institution and guaranteeing the proper functioning of dollarization in the country. In this manner, the Central Bank of Ecuador also contributes positively to the sustainability of public finances, being part of an orderly and efficient management of public administration.

Profit distributed to the MEF
(USD Millions)

grafico en 2 09022024


[1] The successful conversion of 241.124 troy ounces of gold accounted for 37% of the net profit  recorded by the BCE in 2023.