From CNBC:

Joachim Nagel, president of Deutsche Bundesbank, reported that the German central bank faced losses in the tens of billions in 2023 due to higher interest rates, leading to a balanced financial result after releasing 19.2 billion euros in provisions for risks and 2.4 billion euros from reserves. The bank now has 0 in annual distributable profit, with negative net interest income for the first time in its 67-year history, totaling -13.9 billion euros.

The European Central Bank also suffered its first annual loss since 2004, posting 1.3 billion euros, with the Dutch central bank reporting a 3.5 billion euro loss. Central banks, including the Bundesbank and ECB, hold large securities positions exposed to interest rate risk due to a run of rate hikes, requiring hefty payouts after financial stimulus measures.

The Bundesbank insists that its financial burdens do not affect its ability to conduct monetary policy for price stability, despite minimal profit distributions to the federal budget. President Nagel supports rate hikes to tame high inflation but says rate cuts will only come with convincing data on inflation targets. Experts project the German economy to rebound amid foreign sales growth and increased consumer spending.



Read more: German central bank losses soar, wiping out risk provisions