## THE FUND’S INCOME POSITION FOR FY 2022—ACTUAL OUTCOME

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### Executive summary and overall outcome
- FY 2022 net income (General Department): SDR 3,085 million.
- Increase versus April projection: SDR 874 million higher.
- Main driver of the upward revision: IAS 19 remeasurement gains about SDR 1,003 million higher than anticipated.
- Net transfer of currencies scheduled from the GRA to the Investment Account during FY 2023: SDR 3,174 million.
- Precautionary balances at end-FY 2022: SDR 20.9 billion (IAS 19 remeasurement gain excluded per the new approach).

### Income components (operational income and investment results)
- Total lending income: SDR 2,621 million (broadly in line with April estimates).
  - Margin for the rate of charge: SDR 905 million.
  - Service charges and other income: SDR 199 million.
  - Commitment fees: SDR 283 million.
  - Surcharges: SDR 1,234 million.
- Investment Account:
  - Fixed-Income Subaccount investment loss: SDR -222 million (versus projected SDR -62 million); adverse spike in SDR yields contributed to higher negative returns in the final two months of FY 2022.
  - Endowment Subaccount returns: SDR 133 million (versus projected SDR 202 million); fixed-income assets and equities recorded losses during the final two months, partially offset by US dollar appreciation against the SDR.
- Interest free resources: SDR 6 million.
- Reimbursements: SDR 8 million.
- Net operational income before IAS 19 remeasurement gains (A - B): SDR 1,437 million (April projection SDR 1,497 million; difference SDR -60 million).

### Expenses, pension accounting (IAS 19), and reconciliations
- Total expenses: SDR 976 million (SDR 97 million lower than April projection of SDR 1,073 million).
  - Net administrative expenditures: SDR 841 million (SDR 11 million higher than projected).
  - Capital budget items expensed: SDR 20 million (SDR 2 million higher than projected).
  - Depreciation: SDR 30 million (SDR 5 million lower than projected).
  - Net periodic pension cost after funding (IAS 19): SDR 62 million (SDR 110 million lower than projected net periodic pension cost of SDR 172 million).
- IAS 19 remeasurement gains (total): SDR 1,515 million (April projection SDR 512 million; increase SDR 1,003 million).
  - Contribution from discount rate change (to actual year-end 4.18 percent from 3.30 percent projected): SDR 1,686 million to higher remeasurement gains.
  - Offset by lower-than-anticipated returns on plan assets: SDR -409 million.
  - Other net losses (including 8.5 percent COLA and higher exchange rate translation losses, partly offset by changes in MBP assumptions): about SDR -274 million.
- Reconciliation highlights:
  - Total IAS 19 gains reported in Table 3: SDR 1,453 million (discount rate change 2,274; excess return on assets -487; other -272; totals may not add due to rounding).
  - Discount rate at end of year: 4.18 percent (April projection 3.30 percent).

### Net income allocation and governance decisions
- Net income position (reported): SDR 3,085 million (April projection SDR 2,211 million; change 40 percent).
- Treatment of FY 2022 results per Executive Board decisions in April 2022:
  - Loss of SDR 222 million incurred by the Fixed-Income Subaccount and Endowment Subaccount income of SDR 133 million are retained in their respective subaccounts.
  - A portion of the FY 2022 GRA net income equivalent to the pension-related remeasurement gain was placed to the Fund’s special reserve; the remainder was allocated equally between the Fund’s general reserve and special reserve.
  - Transfer of currencies equivalent to the GRA net income (excluding current year investment losses retained in the Fixed-Income Subaccount) scheduled from the GRA to the Fixed-Income Subaccount in FY 2023: SDR 3,174 million.

### Precautionary balances and measurement approach
- Precautionary balances at April 30, 2022: SDR 20.9 billion (in line with April projection).
- Measurement approach: The increase in IAS 19 remeasurement gains was excluded from precautionary balances per the new approach endorsed by Directors in December 2021; the new approach replaces the accounting valuation of net pension-related assets and liabilities under IAS 19 with a more long-term economic measure and is effective from FY 2022.
- One-off permanent adjustment effective May 1, 2021: positive SDR 205 million to reverse the impact of cumulative IAS 19 gains and losses previously included in precautionary balances under the accounting basis.

### Key statistics and memoranda (as reported)
- Fund credit (average stock, SDR billions): 90.4 90.5
- SDR interest rate (average, in percent): 0.1 0.1
- US$/SDR exchange rate (average): 1.42 1.41
- Net operational income after IAS 19 gains: SDR 2,952 million (April projection SDR 2,009 million; difference SDR 943 million)
- Endowment Subaccount investment income (EA): SDR 133 million (April projection SDR 202 million; difference SDR -69 million)

*Source: THE FUND’S INCOME POSITION FOR FY 2022—ACTUAL OUTCOME (ppea2022057)*

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_Source: https://www.imf.org/-/media/files/publications/pp/2022/english/ppea2022057.pdf_