Figure 6.3 shows the breakdown of total costs in this sector by the type of cost. The largest share of costs is comprised of fees. Total costs changed very little between 2012 and 2014 but increased by almost €2bn in 2015. Costs have continued to increase since, with fees and other operating costs being the main driver of the increases.

Figure 6.5 shows the evolution of gross value added in this sector and how this can be split into its components of gross operating surplus and labour costs. Labour costs have been relatively stable with an increasing trend, meaning that most of the volatility in gross value added is attributed to fluctuations in gross operating surplus. In 2018, labour costs stood at €1.0bn while gross operating surplus had a value of €1.1bn, resulting in gross value added of €2.1bn.

Figure 6.6 shows an alternative split of gross value added, into production value and intermediate consumption. While both production value and intermediate consumption have increased almost every year, the increases have not mirrored one another exactly. Consequently, gross value added fluctuates up and down from year to year, with a general upward trend. In 2018, the figures for production value and intermediate consumption were €8.2bn and €6.1bn respectively, resulting in gross value added of €2.1bn.

Figure 6.7 shows the evolution of profit before tax in this sector. Profit is calculated as the residual after subtracting costs and interest expenses from total revenue. These costs include labour costs, intermediate consumption and all other costs. Profit has increased every year except for 2017, when it decreased by €5.4bn from its 2016 value of €7bn to stand at €1.6bn. This decrease was mainly caused by reduced revenue and increased interest expenses. Profit increased again in 2018 to a value of €6.2bn, a similar level to that seen before 2017.

The largest share of assets of treasury companies is that of loans (AF.4) which, at €288.5bn, accounts for 67% of the total assets of €431.5bn in 2018. Equity (AF.5) holdings have increased significantly from 8.2% in 2012 to 24.3% in 2018, as debt securities (AF.3) have decreased over the same period.

The breakdown of liabilities is similar to that of the assets. The main component of total liabilities is loans (AF.4) which accounted for 53% of the €473.1bn total liabilities in 2018. The share of equity (AF.5) has increased from 14% to 43% between 2012 and 2018, again largely replacing debt securities (AF.3).

After several years of an increases, the total size of the balance sheet fell in 2017 for the first time since 2013, mainly due to a decrease in loans (AF.4) assets and liabilities.

The shares of Irish and foreign assets held by treasury companies are relatively stable between 2012 and 2015, with approximately 20% Irish assets and 80% foreign assets. In 2016, the non-resident share of assets decreased to 73%, and again remained around this level until 2018.

Similar to the assets of treasury companies, liabilities are also approximately 20% Irish and 80% foreign between 2012 and 2015. In 2016 and 2017 the share of assets held in Ireland increased to 37% and 40% respectively, decreasing again in 2018 to 31%.

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