The German Bundesbank announced that it recorded a balance‑sheet loss of €8.6 billion for the fiscal year 2025. The central bank explained that, although the loss is still significant, it is more than half smaller than the €18.4 billion loss recorded in 2024 – a sign that the institution’s earnings have improved. President Joachim Nagel said the bank still faces financial burdens but that they are receding, and he expects the positive trend to continue.
Despite the 2025 loss, the Bundesbank remains confident in its ability to meet its responsibilities. The entire balance‑sheet loss, which combines the carried‑forward deficit with the current year’s shortfall, now totals €27.8 billion. Nagel stressed that these charges are temporary; any future surpluses will be used to write down the accumulated loss from its own resources and to build the necessary risk provision.
The bank maintains a strong financial position. By the end of 2025 it had valuation reserves of €388 billion – many times the size of the current and prospective losses. Vice‑president Sabine Mauderer noted that the 2025 deficits were largely a legacy of past monetary policy and the rate hikes of 2022 and 2023. She expects the burden to ease further in 2026, although it will remain noticeable.
Net interest income improved by €8.9 billion compared with the previous year, yet it remained negative at €‑4.2 billion. The drop in net interest earnings was largely due to smaller bond holdings and lower policy rates.
Total assets changed little in 2025, falling €24 billion to €2 349 billion. Bond holdings decreased by €122 billion, but this loss was offset by a €125 billion increase in the valuation of the gold position, which rose to a record €395 billion thanks to a strong price advance. Consequently, net equity rose €112 billion to €363 billion.
