By Gokhan Ergocun
ISTANBUL (AA) — The European Central Bank (ECB) announced on Thursday its financial results for 2025, reporting a net loss of €1.3 billion ($1.4 billion).
This figure represents a substantial recovery compared to 2024, when the central bank posted a record loss of €7.9 billion ($8.3 billion).
The ECB stated that the 2025 loss was fully covered by the release of provisions for financial risks, resulting in no reported loss on the final balance sheet.
The central bank noted that its financial performance continues to be impacted by the interest rate environment and the costs associated with monetary policy operations.
Despite the negative result, the ECB emphasized that its ability to conduct effective monetary policy remains unaffected by the reported losses.
The report highlighted that net interest income improved during the year, helping to offset some of the expenses incurred from previous stimulus measures.
The ECB explained that the losses in recent years were an expected side effect of the necessary actions taken to combat high inflation across the euro area.
Supervisors noted that the central bank still maintains significant capital and revaluation accounts, which provide a buffer against future financial risks.