Sweden's Riksbank published its decision on financial provisions for the 2024 financial year, concluding that it will make no financial risk provisions and no reversals. The decision reflects a preference to use profits to rebuild equity, which it views as the primary balance sheet risk buffer. For 2024, the Riksbank expects a profit of just over SEK 30 million and equity of around SEK 23 billion after appropriation of profits, well below the SEK 63 billion target level set out in the Sveriges Riksbank Act. Given this consolidation need, the Riksbank judged that building equity better addresses resilience than allocating funds to a risk provision, which is limited to specific risks or losses. With no previously allocated risk-provision funds for 2024, no reversals are possible and reported provisions remain unchanged from 2023. The expected profit and equity figures will be determined after the Riksdag approves the General Council of the Riksbank’s decision on the allocation of results in spring 2025.
Riksbank 2025-01-10
Sweden's Riksbank makes no 2024 financial risk provisions as equity is expected at SEK 23 billion versus a SEK 63 billion target
Sweden's Riksbank announced it will make no financial risk provisions or reversals for the 2024 financial year, opting to use profits to rebuild equity as a primary risk buffer. The Riksbank anticipates a profit of over SEK 30 million and equity of approximately SEK 23 billion, below the SEK 63 billion target. This decision prioritizes equity consolidation over risk provisions, which are limited to specific risks or losses.