The European Central Bank published its Annual Accounts for 2024, reporting a loss of EUR 7,944 million and a EUR 32.6 billion reduction in its balance sheet to EUR 640.6 billion. The loss was again driven by net interest expense, mainly from the ECB’s net TARGET liability, and will be carried forward on the balance sheet to be offset against future profits. The balance sheet contraction was largely due to the decline in securities held for monetary policy purposes as reinvestments under the asset purchase programme (APP) had been discontinued from July 2023 and reinvestments under the pandemic emergency purchase programme (PEPP) were only partially made in the second half of 2024 before being discontinued at end-2024. Securities held for monetary policy purposes fell by EUR 48.6 billion to EUR 376.8 billion (59% of total assets), with APP holdings down EUR 41.6 billion to EUR 220.1 billion and PEPP holdings down EUR 6.8 billion to EUR 156.3 billion; the net TARGET liability declined by EUR 56.3 billion to EUR 348.1 billion. Foreign reserve assets increased by EUR 15.4 billion to EUR 103.1 billion, including a EUR 10.5 billion rise in the value of gold holdings to EUR 40.9 billion, contributing to higher revaluation accounts and net equity of EUR 50.0 billion. From 1 January 2025, the deposit facility rate becomes the basis for remuneration of TARGET balances, claims related to the allocation of euro banknotes within the Eurosystem, and liabilities equivalent to the transfer of foreign reserves. For banking supervision, supervisory fee income for 2024 was EUR 681 million, with individual supervisory fees to be invoiced in the second quarter of 2025 and the decision on the total amount of annual supervisory fees for 2024 to be adopted and published in mid-March 2025.
European Central Bank 2025-02-20
European Central Bank reports EUR 7.9 billion loss in 2024 Annual Accounts as balance sheet falls to EUR 640.6 billion
The European Central Bank reported a EUR 7,944 million loss for 2024, mainly due to net interest expenses, and a EUR 32.6 billion reduction in its balance sheet to EUR 640.6 billion. This contraction was driven by a decline in securities held for monetary policy purposes, with significant reductions in both the asset purchase programme and pandemic emergency purchase programme holdings. From 1 January 2025, the deposit facility rate will be used for remuneration of TARGET balances and related claims, while supervisory fee income for 2024 was EUR 681 million.