The Central Bank of Luxembourg published its audited financial statements for the year ended 31 December 2024, reporting a break-even result after booking net risk provisions of EUR 86.5 million to offset a pre-provision profit of the same amount. Total assets fell 7.5% year on year to EUR 261.8 billion, amid continued Eurosystem-wide pressure from higher funding costs on monetary policy portfolios. Run-off of the last tranches of targeted longer-term refinancing operations (TLTRO-III) reduced euro-denominated monetary policy lending to euro area credit institutions by 99.9% to EUR 1 million. Claims on the Eurosystem, largely linked to TARGET (T2) payment flows, declined 7.1% to EUR 239.340 billion. Securities held under monetary policy purchase programmes totalled EUR 11.130 billion (EUR 4.795 billion in the third covered bond purchase programme, EUR 4.772 billion in the public sector purchase programme and EUR 1.563 billion in the pandemic emergency purchase programme), while the Bank’s own euro securities portfolios excluding the pension fund increased to EUR 4.183 billion. On the liability side, the Luxembourg share of euro banknotes in circulation (0.3350% of the Eurosystem total) rose to EUR 5.321 billion and euro liabilities to credit institutions related to monetary policy operations fell 13% to EUR 146.888 billion; statutory pension obligations increased to EUR 704 million. Net interest income decreased to EUR 883 million and the monetary income redistribution produced a net outflow of EUR 727 million to the Eurosystem. Realised gains on financial operations increased to EUR 35.1 million, valuation adjustments fell to EUR 0.2 million, and operating expenses excluding statutory pension contributions were broadly stable at EUR 108.2 million; the statutory pension funding contribution dropped to EUR 9.9 million. The annual report is available for download and will also be made available in print on request, and the Governing Council granted discharge to the Bank’s governing bodies on 25 April 2025 following approval of the certified accounts.
Central Bank of Luxembourg 2025-07-31
Central Bank of Luxembourg reports break-even 2024 result after EUR 86.5 million risk provisioning as balance sheet falls to EUR 261.8 billion
The Central Bank of Luxembourg reported a break-even result for 2024 after net risk provisions of EUR 86.5 million offset pre-provision profits. Total assets decreased by 7.5% to EUR 261.8 billion due to higher funding costs across the Eurosystem. Euro-denominated monetary policy lending dropped by 99.9% following the run-off of TLTRO-III, while net interest income fell to EUR 883 million with a net outflow of EUR 727 million to the Eurosystem.