EBA欧洲银行-EBA-2018-Annual-Accounts_34页_1mb

European Banking Authority 2018 Annual Accounts Summary

Core Content

The European Banking Authority (EBA) published its annual accounts for the year 2018, prepared in accordance with the EU Financial Regulation, the Commission's accounting rules, and the accounting principles of the EBA's Accounting Officer. The accounts are certified to present a fair and accurate financial position, results of operations, and cash flow of the EBA in all material aspects.

The EBA is an independent EU agency established by Regulation (EU) No 1093/2010, with a mandate that includes preventing regulatory arbitrage, ensuring a level playing field in regulation, strengthening international supervisory coordination, and promoting consumer protection. It operates under the European System of Financial Supervisors (ESFS) and collaborates closely with EIOPA and ESMA in the Joint Committee, as well as with the ESRB.

The EBA's funding is split between Union funds (40%) and contributions from Member States (60%), based on the weighting of votes in the Protocol on transnational transitions. Additionally, it receives contributions from EFTA countries and funds the European pension scheme in compliance with EU Staff Regulation.

Main Financial Statements

2.1 Balance Sheet

2.2 Statement of Financial Performance

2.3 Cash Flow Statement

2.4 Statement of Changes in Net Assets

Key Financial Information

• Non-current assets increased from EUR 9,800,446 in 2017 to EUR 5,472,180 in 2018, with a significant portion attributed to intangible fixed assets.
• Intangible fixed assets (primarily computer software) amounted to EUR 2,813,819 in 2018, reflecting additions from the DPM-Driven Data Analysis, EUCLID Work stream 2, and PSD 2 projects.
• Tangible fixed assets totaled EUR 2,658,362 in 2018, including computer hardware, furniture, and other fixtures and fittings.
• Provisions for risks and charges were EUR 8,589,141 in 2018, primarily related to the move to Paris, including re-instantment costs and rent obligations.
• Current assets totaled EUR 7,677,241 in 2018, with a significant portion in cash and cash equivalents.
• Cash and cash equivalents increased from EUR 3,511,280 in 2017 to EUR 5,587,528 in 2018, with contributions from Citigroup and ING.
• Operating expenses exceeded operating revenue, leading to an economic loss of EUR 6,751,749 in 2018, compared to EUR 4,922,377 in 2017.
• The EBA is preparing to move its headquarters to Paris, France, effective 30 March 2019, with the physical move expected by 31 May 2019.
• The lease agreement in London includes a 32-month rent-free period, with the Authority expected to exercise the break option and repay 16 months of rent by 07/12/2020.

Notes to Financial Statements

• The financial statements are prepared on a going concern basis and use accrual accounting.
• The functional and reporting currency is the euro (EUR), with minor differences due to rounding.
• Non-current assets include intangible and tangible fixed assets, with depreciation rates varying by asset type (25% for hardware and software, 10% for other fixtures and fittings).
• Current receivables include VAT recoverable from UK authorities, with a total of EUR 883,148 in 2018.
• Prepaid expenses include rent, insurance, IT maintenance, and publications subscriptions, totaling EUR 1,133,391 in 2018.
• Provisions for risks and charges are classified as either non-current or current, with the largest portion related to the move to Paris.
• Contingent liabilities are not recognised in the balance sheet as their existence depends on uncertain future events.
• Leases are classified as financial or operating, with operating leases charged to the financial performance statement.

Conclusion

The 2018 financial year for the EBA was marked by a significant shift in operations, including the planned move to Paris. This resulted in increased provisions and financial commitments. Despite the move, the EBA continued to operate under the guidance of its Board of Supervisors and Management Board, with a focus on prudence, comparability, and transparency in financial reporting. The accounts reflect the financial challenges associated with the relocation and the ongoing operations of the Authority.