Central Bank reports €2.5bn profit for last year

The Central Bank is reporting a profit of over €2.5bn for last year – with just over €2bn of it paid into the Exchequer.

The profit is down €420m on last year’s record profit of €2.98bn.

In its latest financial report, the regulator said it is committed to supporting households and businesses through the COVID-19 crisis.

Central Bank Deputy Governor Sharon Donnery told Newstalk that the economic recovery is totally dependent on what happens with the virus in the coming months.

“If there were a re-emergence of the virus later in the year or next year of if there had to be some continuation of the containment measures or some reintroduction of them the future that would obviously have further negative effects on the economy,” she said.

Governor Gabriel Makhlouf said one of the key outcomes of the regulators work last year was the final report on the Tracker Mortgage scandal – which saw lender spaying over €700m to 40,500 people.

He said the regulator also carried out eight enforcement actions, resulting in fines totalling more than €30bn.

The report notes that 256 Central Bank staff members were earning more than €100,000 last year.

Four people were taking in salaries worth more than €190,000.

Mr Makhlouf earned €95,597 for the four months he worked after taking over the position September. He also received nearly €9,000 in relocation expenses.

Former governor Philip Lane was paid nearly €140,000 for the five months of the year he worked before stepping down.

Ms Donnery was paid €70,466 for her three months as acting governor and €183,635 for her nine months as Deputy Governor.

Financial system

It claimed its “focus on strengthening the wider financial system” in Ireland in recent years has helped the financial sector withstand the initial shock of the outbreak.

“The impact of the pandemic will continue to be felt throughout society for some time,” it said.

“We are committed to putting in place the necessary conditions to support households and firms through, and out of, the crisis.

It said protecting the economy against the effects of Brexit also remains an important priority for the rest of the year.