The Central Bank of the Republic of San Marino announces that on May 30, 2023, a Shareholders’ Meeting was held, attended by Marco Gatti, the Secretary of State for Finance and Budget, and Roberto Ciavatta, the Secretary of State for Health and Political Affairs, representing the Esteemed Chamber. The meeting also included representatives from the banks participating in the endowment fund.
During the Assembly, the following resolutions were adopted:
The unanimously approved Financial Statements for the 2022 FY reveal a total asset value of €660.14 million, reflecting a decline of €176.76 million compared to the previous year’s figure of €836.90 million. The changes in the balance sheet were significantly impacted by the contracting dynamics of deposits, leading to a corresponding decline in lending activities.
The income indicators from ordinary operations demonstrate an improvement largely attributable to net interest income, which reached €9.30 million, an increase of €4.47 million from the prior year. However, this margin is insufficient to cover operating costs, which amounted to €10.03 million, up from €9.15 million in 2021. Operating expenses primarily consist of administrative costs totaling €9.72 million, contributing to a gross operating result that, while still negative, shows an improvement of €3.58 million compared to the previous year.
Throughout 2022, the Bank continued its efforts to contain costs and pursue maximum efficiency. It is important to note that achieving budgetary balance can only be accomplished through the complete recovery of costs incurred in providing services to the community, the State, and the Public Administration. As a result of the dynamics outlined above, the final net operating result stands at a negative €1.03 million. The financial year concludes at breakeven, thanks to the utilization of the general financial risk reserve in an equivalent amount.
The General Assembly of Shareholders also approved the “Final Report on Activities and the Performance of the Financial System 2022,” which outlines the developments within the system over the past year and details the activities undertaken by CBSM, in line with the financial system strategy published in April 2019.
The current situation highlights the results achieved through the implementation of the aforementioned strategy:
system liquidity and savings collection have stabilized, with total savings reaching €3.663 billion compared to €3.614 billion the previous year;
The recent recovery of profits within the banking sector warrants special attention. No economic sector can thrive and sustain itself without generating periodic profits, and banks are no exception to this principle. It is, therefore, crucial for financial intermediaries to resume profit generation in order to safeguard the interests of all their stakeholders - not only shareholders but also clients and employees.
This economic recovery has been facilitated by the efforts of the Central Bank to enhance the stability and attractiveness of the financial system, alongside banks' commitment to cost reduction.
For further details, please refer to the complete texts concerning the "Annual Report 2022" and the "Final Report on Operations and Performance of the Financial System 2022."