European Central Bank records first annual loss in almost two decades in 2023

(Patria) - The European Central Bank (ECB) recorded its first annual loss in almost two decades last year, according to a financial report published on Thursday.

The ECB reported a loss of 1.3 billion euros in 2023, its first annual loss since 2004.

"There will be no distribution of profits to national central banks in the eurozone for 2023," it added.

The ECB stated that raising its key interest rates to combat inflation in the eurozone resulted in increased expenses for liabilities subject to variable interest rates.

Interest income on assets, however, did not increase to the same extent or at the same pace, as these assets mostly have fixed interest rates and long maturities.

The ECB announced that it will likely incur losses in the coming years, but expects to return to sustainable profits thereafter.

The European Central Bank (ECB) occupies a central position within the European System of Central Banks and is the central institution of the European Union's monetary policy. The ECB implements this policy partly independently and partly through the central banks in the eurozone.