22 February 2024

• ECB reports loss of €1.3 billion (2022: zero) after release of €6.6 billion from provision for financial risks
• Loss carried forward on ECB’s balance sheet to be offset against future profits

The European Central Bank’s (ECB’s) audited financial statements for 2023 show a loss of €1,266 million (2022: zero) which will be carried forward on the ECB’s balance sheet to be offset against future profits. This loss takes into account the full release of the provision for financial risks, amounting to €6,620 million, which partially covered losses incurred during the year. There will be no profit distribution to the euro area national central banks (NCBs) for 2023.

The loss, which followed almost two decades of substantial profits, reflects the role and necessary policy actions of the Eurosystem in fulfilling its primary mandate of maintaining price stability and has no impact on its ability to conduct effective monetary policy. The raising of key ECB…