National Bank of Belgium reports 3.7bn euro loss for 2024
The National Bank of Belgium (NBB) expects to have made a loss of 3.7 billion euros last year, the institution announced on Thursday evening. There will be no dividend.
That would make the loss booked in 2024 the NBB's biggest in recent years. In 2022, the bank was in the red by 580 million euros, and by 3.37 billion euros in 2023.
The loss is a consequence of rising interest rates. During the Covid-19 crisis, central banks bought debt at low interest rates. After that, interest rates rose, resulting in central banks having to pay out more interest to ordinary banks. This effect should diminish in the coming years.
Negative balance
At the beginning of 2024, the NBB still had a financial buffer of 3.1 billion euros. This money will have to be fully used up because of the expected loss; the excess loss will be carried forward.
This will not affect the stability and continuity of the institution, the bank stresses. "A central bank can, at least in the medium term, continue to carry out its tasks normally with a negative capital position."
The National Bank will publish its annual results on 26 March.
© BELGA PHOTO JONAS ROOSENS
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