Bank of Canada 2022 Financial Statements

Summary#

These are the audited financial statements of the Bank of Canada for the year ending December 31, 2022, published in the Canada Gazette on April 29, 2023. They show a net loss of $1,111 million for 2022 and a comprehensive loss of $705 million, leaving an accumulated deficit of $1,086 million on the Bank’s balance sheet.

What it does#

• Publishes the Bank’s full, audited accounts for 2022. The audit opinion was issued by Ernst & Young LLP and KPMG LLP and says the statements fairly present the Bank’s finances under IFRS.
• Reports the Bank’s headline balances, including total assets of $410,710 million, total liabilities of $410,807 million, and an equity (deficiency) of $97 million.
• Shows key balance-sheet items, for example:
  • Bank notes in circulation: $119,726 million.
  • Deposits (Government, Payments Canada members and others): $273,333 million.
  • Securities sold under repurchase agreements: $17,396 million.
  • Derivative asset (indemnity agreements with the Government of Canada): $31,346 million.
• Shows the 2022 income and expenses that produced the loss:
  • Interest revenue: $4,373 million.
  • Interest expense on deposits: $4,300 million (other interest expense $486 million).
  • Operating expenses: $712 million.
  • Net interest result was a loss of $413 million, contributing to the overall net loss of $1,111 million.
• Discloses pension and employee benefit positions, commitments (including IT and data-centre contracts), and contingent items such as the Bank’s holdings of shares in the Bank for International Settlements.

Who's affected#

• Government of Canada (through the Receiver General for Canada): normally the Bank transfers net surplus to the Receiver General. A net loss means there was no remittance of surplus for 2022.
• Members of Payments Canada and other financial institutions: they hold large deposits with the Bank and are part of the Bank’s liquidity and settlement operations described in the statements.
• People who use cash: the report records the amount of bank notes in circulation, but it does not change the day‑to‑day use of cash.
• Bank employees and retirees: the statements disclose the Bank’s pension and other post‑employment benefit positions and related actuarial information.
• Anyone who follows public finances or central‑bank operations: the statements show how market moves and interest costs affected the Bank’s accounts in 2022.

Why it matters#

• This is an official, audited record of how the central bank’s assets, liabilities and results changed during a year of rapid interest‑rate moves. The large losses largely reflect higher interest costs the Bank paid on deposits and market value changes on securities.
• The Bank’s accounting loss does not mean it cannot do its job. The statements note the Bank retains the ability to provide Canadian‑dollar liquidity and to continue operations despite the accumulated deficit.
• For the public and policymakers, the report shows where the financial pressure came from (interest costs, market values) and documents the state of the Bank’s balance sheet, pension plans and financial commitments in a single, official source.