March 14, 2014
Federal Reserve System publishes annual financial statements
For immediate release
The Federal Reserve System on Friday released the 2013 combined annual financial statements for the Federal Reserve Banks, as well as statements for the 12 individual Federal Reserve Banks, the consolidated variable interest entities (VIEs) that were created to respond to strains in financial markets, and the Board of Governors. These financial statements are audited annually by an independent auditing firm.
The Federal Reserve Banks' 2013 earnings, inclusive of other comprehensive income, were $81.4 billion. The Reserve Banks provided for remittances to the U.S. Treasury of $79.6 billion.
Interest income on securities acquired through open market operations--U.S. Treasury securities, government-sponsored enterprise (GSE) debt securities, and federal agency and GSE mortgage-backed securities (MBS)--totaled $90.4 billion, an increase of $9.9 billion over the previous year. There were no realized gains on the sales of U.S. Treasury securities in 2013, compared to $13.3 billion of gains in 2012 from the sales of short-term U.S. Treasury securities under the maturity extension program, which was completed in 2012. Earnings attributable to the consolidated VIEs were $181 million, $5.8 billion less than 2012. Interest expense on depository institutions' reserve balances during the year was $5.2 billion, losses from the daily revaluation of foreign currency denominated asset holdings were $1.3 billion, and Reserve Bank operating expenses were $6.1 billion, including assessments of $1.8 billion for Board expenses, currency costs, and the Bureau of Consumer Financial Protection.
Total Reserve Bank assets as of December 31, 2013, were $4.0 trillion, which is an increase of $1.1 trillion over the balance on December 31, 2012. Holdings of U.S. Treasury securities increased by $550.2 billion, and federal agency and GSE MBS holdings increased by $583.5 billion. GSE debt securities holdings decreased by $20.4 billion, and balances held under central bank liquidity swap arrangements decreased by $8.6 billion. Asset holdings of the consolidated VIEs and the Term Asset Loan Facility, which were created during the financial crisis, continued to decrease and totaled $2.0 billion on December 31, 2013.
The Federal Reserve System financial statements are available on the Federal Reserve Board's website at www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htm
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