Mr. Speaker, the 2021-22 Public Accounts include a net profit of $2.8 billion for the Bank of Canada. This amount is reflected in the line “Other Revenues – Enterprise Crown corporations and other government business enterprises” on the Consolidated Statement of Operations and Accumulated Deficit on page 57 of Volume I of the Public Accounts of Canada 2022, and includes the $1-billion constructive loss on the Bank’s 2021-22 purchases of Government of Canada bonds discussed on page 16 of Volume I.
Bank of Canada Governor Tiff Macklem stated at the House of Commons Standing Committee on Finance on November 23rd, 2022, that: “After a period of above-average income, our net interest income is now turning negative. Following a period of losses, the Bank of Canada will return to positive net earnings. The size and duration of the losses will ultimately depend on a number of factors, which include, in particular, the path for interest rates, the evolution of the economy and the balance sheet. The losses do not affect our ability to conduct monetary policy. I would also stress that our policy decisions are driven by our price and financial stability mandates. We don't make policy to maximize our income. […] I want to stress that whatever solution is chosen, it's not going to affect how we run monetary policy. As a central bank, we are a going concern. We have liquidity. We will continue to run monetary policy guided by our mandate. We do not run monetary policy to maximize our income. Low inflation is a public good. We run monetary policy to deliver low, stable inflation.”
Senior Deputy Governor of the Bank, Carolyn Rogers, stated the following during the same hearing: “Yes, as the Governor said, we actually expect that the Bank will show negative equity in the coming months. This isn't a problem that's unique to the Bank of Canada. All of our peer central banks in G7 countries are experiencing the same thing.”
The Bank of Canada’s most recent financial report was published on November 29th, 2022 and can be found at https://www.bankofcanada.ca/2022/11/quarterly-financial-report-third-quarter-2022/. The Bank’s 2022 annual report is expected to be published in spring 2023.