SINGAPORE: The Monetary Authority of Singapore (MAS) recorded a net profit of S$5.2 billion in the financial year which ended Mar 31, after a S$1.1 billion contribution to the Government’s consolidated fund.
This represents a 50.9 per cent fall from the previous financial year's net profit of S$10.6 billion.
Half of the net profit for FY2020/21 – S$2.6 billion – will be returned to the Government. The remainder will be added to the MAS’ reserves, MAS said on Wednesday (Jun 30) in its annual report.
The investment return from Singapore's official foreign reserves was S$8.2 billion in FY2020/21.
This comprised investment gains of S$22.8 billion, largely from interest income and realised capital gains. But this was largely offset by a negative currency translation effect of S$14.6 billion, mainly due to the strengthening of the Singapore dollar against the US dollar and Japanese yen.
The central bank’s total expenditure of S$2.3 billion included S$1.9 billion of expenses for the domestic money market and other operations.
"Interest rates declined in 2020 amid the exceptional global monetary easing by central banks to mitigate the economic impact of the COVID19 pandemic," MAS said in the report.
As of Mar 31, the total capital and reserves of MAS was S$47.5 billion.
At a press conference for the release of the annual report, MAS managing director Ravi Menon noted that this year marks MAS’ 50th anniversary. He said that MAS will be commemorating this milestone with a series of activities later this year.
"My colleagues and I are deeply conscious of the legacy which we have inherited and will continue to do our best for Singapore," he said.