Gökhan Ergöçün
20 February 2025•Update: 21 February 2025
ISTANBUL
The European Central Bank posted a record loss of €7.94 billion (approximately $8.3 billion) in 2024, according to official figures on Thursday.
"In 2023, the full release of the provision for financial risks of €6,620 million reduced the loss for that year to €1,266 million, while in 2024, no losses could be covered by this provision as its balance stood at zero," the bank stated.
As a result of the loss, it stated that no profits will be distributed to euro area national central banks for 2024.
The losses stemmed from policy actions taken by the Eurosystem that were necessary to fulfill its primary mandate of maintaining price stability, the bank claimed.
These actions increased the ECB’s key interest rates in 2022 and 2023, which were aimed at combating high inflation in the euro area.
In 2024, as in 2023, interest expenses were higher than interest income, it noted.
