The Deutsche Bundesbank reported a balance‑sheet loss for the fiscal year 2025.
The loss amounted to €8.6 billion, the bank announced on Thursday in Frankfurt.
The central bank viewed the result positively because the annual deficit had fallen by more than half compared with 2024, signalling a clear improvement in earnings.
Bundesbank President Joachim Nagel explained that, although the bank still bears financial burdens, they are receding. “From today’s perspective, this positive trend should continue” he said when presenting the annual accounts.
Nevertheless, patience is still required: the Bundesbank is expected to post another annual deficit this year.
The total balance‑sheet loss – comprising the loss carry‑forward and the current year deficit – stands at €27.8 billion.
Nagel noted that the financial pressures are temporary. “Future annual surpluses will be used to eliminate the accumulated balance‑sheet loss from our own resources and to build the necessary risk provisions” he added.
Even with a balance‑sheet loss, the Bundesbank can fulfil its duties fully.
“It should not be forgotten that the Bundesbank still maintains a solid balance sheet” Nagel emphasized.
By the end of 2025, the bank’s valuation reserves had grown to €388 billion, which is multiple times higher than the current and expected balance‑sheet loss.
In 2025, financial pressures were also evident, primarily caused by the monetary policy actions of previous years and the rate hikes in 2022 and 2023.
Vice‑President Sabine Mauderer said the annual deficit remains “substantially significant” and expects the pressures to decline further in 2026, though they will still be noticeable.
Net interest income improved by €8.9 billion compared with the previous year, yet it remained negative at €4.2 billion.
The decline of the net interest income was largely due to shrinking bond holdings and lower policy rates, which reduced the associated losses.
The total assets of the Bundesbank changed only marginally in 2025, decreasing by €24 billion to €2.349 trillion.
Bond holdings fell by €122 billion, but this was offset by a rise in the valuation of the gold portfolio, which increased by €125 billion to a new record high of €395 billion because of the sharp rise in gold prices.
This boost lifted net equity by €112 billion to €363 billion.