The Czech National Bank (CNB) published its 2025 overview of inflation and financial performance, reporting inflation close to its target and a record koruna-denominated return on international reserves of CZK 253 billion (10.3%). Despite the investment return, exchange rate movements led to an exchange rate loss and an overall accounting loss of CZK 73 billion for 2025, while the accumulated loss fell to CZK 350 billion at year-end; the CNB also reported an interim profit of CZK 95 billion as of 20 March 2026. International reserves totalled CZK 3.6 trillion at end-2025, with equities delivering CZK 163 billion in annual return; the CNB invests in equities via passive index replication and is increasing the equity share towards 30% of total reserves by 2029 based on a 2023 Bank Board decision. Gold holdings rose to almost 72 tonnes and generated CZK 57 billion profit in 2025, with an objective of reaching 100 tonnes by 2028; currency appreciation against reserve currencies, including a 15% rise against the US dollar, drove a CZK 224 billion exchange rate loss (the CNB estimated profit would have been around CZK 150 billion if exchange rates had been stable). On the liabilities and cost side, interest paid to banks on deposits was CZK 100 billion in 2025, and operating expenses rose 3.4% year on year; the CNB also disclosed, for the first time, data on managerial benefits for Bank Board members and senior staff (averaging 17% of net salary) and noted that free personal car use was replaced by a transport allowance in 2025. The CNB said it will continue adjusting reserve composition and managing operating costs as it seeks to eliminate the accumulated loss and later create a reserve fund that would allow profit transfers to the state budget under the Act on the CNB. It also described ongoing efficiency and technology work under the CNB Lab platform, including investments in AI and data tools and modernising payment processes, alongside continued enhancements to instant payments infrastructure; expected year-on-year operating expense growth for 2026 was given as 4–5%.
Czech National Bank 2026-03-31
Czech National Bank publishes 2025 results showing record CZK 253 billion reserve return and a CZK 73 billion accounting loss
The Czech National Bank reported inflation near target in 2025 and a record koruna return on international reserves of CZK 253 billion (10.3%), but exchange rate losses produced an overall accounting loss of CZK 73 billion and an accumulated loss of CZK 350 billion. Reserves were CZK 3.6 trillion, with the CNB raising the equity share toward 30% by 2029 and gold holdings toward 100 tonnes by 2028. It also disclosed new data on managerial benefits and staff transport changes, and will keep adjusting reserve composition, managing costs and investing in AI, data tools and payment modernisation via its CNB Lab to eliminate accumulated losses and eventually create a reserve fund for profit transfers to the state budget.