Mauderer highlights Bundesbank's improved financial health despite 2025 loss
Sabine Mauderer presented the Deutsche Bundesbank's 2025 Annual Report, announcing a loss of €8.6 billion, more than halved from the previous year. Net equity climbed to €363 billion, supported by a revaluation reserve for gold.
Gold revaluation bolsters Bundesbank's balance sheet
The Bundesbank's net equity rose by €112 billion to €363 billion in 2025, primarily driven by a significant revaluation of its gold holdings.
The gold position climbed by €125 billion to a historical high of €395 billion, with its revaluation reserve reaching €387 billion.
This substantial increase in gold valuation almost entirely offset a €122 billion decline in monetary policy securities holdings and a €23 billion reduction in TARGET claims.
Despite reporting a loss of €8.6 billion for the year, pushing the accumulated loss to €27.8 billion, the Bundesbank emphasizes its sound financial footing and ability to fully discharge its tasks.
Total assets saw only a slight reduction of €24 billion, demonstrating the bank's robust financial structure.
Reduced interest burden halves annual loss
The Bundesbank's annual loss for 2025 more than halved to €8.6 billion, a significant improvement from the previous year's €19.8 billion.
This was primarily driven by a substantial reduction in net interest income losses, which improved from minus €13.1 billion in 2024 to minus €4.2 billion in 2025.
The negative interest margin narrowed to 1.73 percent, down from 3.28 percent, as the open euro interest rate position shrank by approximately 24 percent.
This reduction in the interest burden, alongside a decrease in the net result of pooling monetary income to €1.7 billion, contributed to the improved earnings situation.
Resilience despite persistent challenges
The Bundesbank's 2025 results demonstrate its robust financial structure, capable of absorbing significant losses, primarily due to its substantial gold reserves.
While the halving of the annual loss is positive, the continued accumulated losses underscore the lasting financial impact of past monetary policy measures.
This highlights the ongoing challenge for central banks to manage balance sheet risks in a volatile interest rate environment.