The Bank of France published its 2024 accounts and activity report, recording a EUR 7.7bn net loss after releasing EUR 10.1bn from its General Risk Fund. The loss will be carried forward to be absorbed by future profits, while the Bank’s net position remained strongly positive at EUR 202.7bn and it does not expect to seek recapitalisation from the state shareholder. Net monetary income remained heavily negative at EUR 15.3bn (2023: EUR 14.9bn) as the cost of remunerating bank deposits at the Eurosystem deposit facility rate, which averaged 3.7% in 2024, exceeded returns on long-dated assets bought under asset purchase programmes. The Eurosystem liquidity surplus fell by around EUR 700bn over the year, and maturities of purchased securities and long-term loans contributed to an approximately EUR 81bn balance sheet contraction; the ordinary result before tax was EUR -17.9bn. Income from own-account assets decreased by EUR 5.4bn, reflecting non-recurring gains from US dollar asset sales in 2023 (EUR 4bn) and higher funding costs, while net operating expenses declined to EUR 888m, below the strategic plan cap of EUR 912m. The Bank characterised 2024 as a peak in monetary losses and expects losses to reduce significantly in 2025 as interest costs on liabilities decline, low-yield assets roll off and the balance sheet continues to contract.
Bank of France 2025-03-19
Bank of France reports EUR 7.7bn net loss for 2024 after EUR 10.1bn draw on the General Risk Fund
The Bank of France reported a EUR 7.7bn net loss for 2024, primarily due to the cost of remunerating bank deposits exceeding returns on long-dated assets. Despite the loss, the Bank's net position remains positive at EUR 202.7bn, and it does not anticipate needing recapitalisation from the state. The Bank expects monetary losses to decrease significantly in 2025 as interest costs decline and low-yield assets mature.