Bank of Japan Posts Whopping ¥233 Billion Loss As Its Soaring Balance Sheet Hits Record ¥156 Trillion

Tyler Durden's picture

But... but... a central bank can never lose money. Bzzzz, wrong. As it just so happens, the world's most tragicomic farce of a central bank, and one which is about to officially lost its (faux) "independence" and become a branch of the Japanese government if the up and coming PM Abe has his way, the Bank of Japan, just reported that in the quarter ended September 30, the Japanese central bank reported an operating loss of ¥183.4 billion, and a net loss of ¥232.9 billion. As a comparison, the loss in the same period in 2011 was "only" 91 billion. This is a harbinger of the total collapse that is the utterly meaningless capital tranche of all central banks will go through before the terminal phase of the global Keynesian experiment is finally completed.  But in the meantime, enjoy this chart of the Bank of Japan's balance sheet returning back to a record ¥156... trillion.

And for those who enjoy having fun with google translate, here is the BOJ press release. Red - amusement follows:

128th fiscal year financial statements for the first six months (FY 2012)

Assets and Liabilities

Looking at the situation of assets and liabilities at the end of the first half of fiscal 2012, compared with the end of the previous fiscal year increased by 12 trillion yen 2,317 billion (+8.9%), total assets are 149 trillion yen 9,208 billion, mainly government bonds was. In addition, compared with the end of the previous fiscal year increased by 12 trillion yen 3,019 billion (+9.1%), total debt was 4,410 billion to ¥ 14.7 trillion center (current account) deposits.

And is as follows: take a closer look at these changes in the assets and liabilities of the Bank of Japan. First, looking at the part of the asset, from the fact that government bonds, etc., etc. The amount of the purchase exceeds the amount of redemption, and 102 trillion yen 8,593 billion, more than 18 trillion yen 4,922 billion of the previous fiscal year end (Tasu21.9%). On the other hand, due to a decrease in funding due to funds-supplying operations against pooled collateral, and 34 trillion yen 4,435 billion, less than 8 trillion yen 4,959 billion the prior year end loans, (? 19.8%). The balance of assets purchased by the Fund "such as asset purchases", to ¥ 61 trillion 7,729 billion.

Then, looking at the part of the debt, primarily due to funding through the Fund "such as asset purchases", and ¥ 43 trillion 9,683 billion, more than 9 trillion yen 3,278 billion end of the prior year current account, (+26. 9%). During this time, the 80 trillion yen 9,287 billion, and more than 2 trillion yen 45.8 billion the prior year end balance of ticket issuance, the Bank of Japan (+2.6%).

Profit and loss situation

As for the status of the profit and loss for the first six months of fiscal 2012, ordinary income was a loss of ¥ ? 1,833 billion (ordinary loss). This is intended to primarily driven and that the income related foreign exchange has become more than loss significantly due to the strong yen, that income investment (equity trust property) became super loss money held in trust due to the impairment of shares held is.

Like that it has made trading losses reserve fund of index-linked exchange-traded fund, special income, to ¥ ? 468 billion.

As a result, loss of ¥ ? 2,329 one hundred million surplus before income taxes, surplus income after deducting next (Fri loss before income taxes), corporate income tax, the business tax and residence tax yen ? 2,302 million, income ( I became a gold) loss.

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SheepDog-One's picture

I'm just surprised that CNBC doesn't write it as 'HAWT'.

Poetic injustice's picture

CNBC is right, that is great opportunity to find some bagholders.

fonzannoon's picture

the short squeezes will continue until the morale improves

SheepDog-One's picture

Big deal, the 14 millionth 'short squeeze' to nowhere. 

hannah's picture

isnt 233bil yen worth about $2bil usd....? our banks lose that every day.....

Full Faith and Credit's picture

Could someone tell me how the Yen strengthens to the USD when the BoJ releases this blackhole of a balance sheet? 

Bam_Man's picture

It was either "better than expected" or "not as bad as some feared". Take your pick.

Debeachesand Jerseyshores's picture

Bank of Japan will be renamed Bankrupted Bank of Japan.

cranky-old-geezer's picture



And no it doesn't mean 233 billion yen were destroyed.  That 233 billion yen is still out there in the money supply.

It just means there's less value on the asset side, which should devalue the yen, but it won't, because (as I keep telling Tyler) it ain't tied to the asset side, not when it's an unbacked currency.

And come on, it's 0.14%, not even 1%, nowhere near "whopping".

Bam_Man's picture

A Central Bank's "assets" are the things that enable it to conduct monetary policy via Open Market Operations.

Less value on the asset side as a result of losses means that they are that much "less able" to conduct Open Market Operations. It may look insignificant with the Yen at these levels, but that could change quickly. Mounting Central Bank losses and a falling Yen could easily lead to a situation that gets out of control. 

Overflow-admin's picture

You mean they would need say... a PENTAKILLION bailout?

Bastiat's picture

233B/156T  = .15%  If you inflate your balance sheet enough even 233B losses are de-whopped.  Since mark-to-solvency asset value accounting is in effect and net worth is already a fantasy, no problem. 

chinaboy's picture

Welcome to the era of zombie central banks.