ECB losses soar 500% to record high on interest payments

The European Central Bank’s (ECB) losses surged more than 500% to a record €7.9 billion ($8.27 billion) in 2024, weighed by higher interest payments as borrowing costs soared to unprecedented levels.

In its annual financial report published on Thursday, the ECB said the losses had no impact on its stability or monetary policy, expecting last year to be the peak of its losses before it returns to profitability in the coming years.

In 2023, the bank reported its first annual loss in nearly two decades of € 1.3 billion, largely offset by a risk provision.

Such losses limit the payments the ECB makes to national central banks, as it will initially use future profits to offset past losses.

Between 2005 and 2021, the ECB made a profit of €25.3 billion and paid €17.2 billion to national central banks in the Eurozone.