The Bundesbank also made a billion-dollar loss in 2025, but is no longer so deeply in the red. In view of a significant improvement in the earnings situation, the annual deficit fell by more than half to 8.6 billion euros compared to 2024 (19 billion euros). This means that the status is 2025 second highest deficit in the history of the
central bank. Accordingly, a profit transfer from Frankfurt to the federal government has been canceled for the sixth year in a row.
“Although we continue to have to bear financial burdens, they are easing,” said Bundesbank President Joachim Nagel when presenting the annual financial statements. From today’s perspective, this positive development is likely to continue. Nevertheless, it will Bundesbank “record an annual deficit in the current year”.
The accumulated loss, which results from the loss carried forward and the current annual deficit, currently amounts to a total of 27.8 billion euros. The burdens on the Bundesbank are temporary, emphasized Nagel. “We will use future annual surpluses to reduce the accumulated balance sheet loss using our own efforts and to build up the necessary risk provisions.” Even with one The Bundesbank could lose its balance sheet
fulfill their tasks fully. You have a solid balance sheet.
The ECB is also deep in the red
Inflation is now far from peaks, so the European Central Bank (ECB) The key interest rates in the euro area were lowered again. The deposit rate, which is important for banks and savers, is 2.0 percent.
Nevertheless, the ECB’s balance sheet for 2025 is also in the red: the central bank lost a good 1.25 billion euros. This means that there will once again be no profit distribution to the national central banks in the euro area, including the Bundesbank. 2024 had that ECB recorded the highest loss in its history at more than 7.9 billion euros.
The ECB expects to return to profitability in 2026 or 2027. However, it may still be years before the national central banks in the euro area benefit from distributions again: the ECB carries the losses of around 10.5 billion euros that have accumulated in recent years on its balance sheet until these can be offset by future profits.