In 2024, the National Bank of Belgium (NBB) went red for the third year in a row. As expected, the loss was almost 3.7 billion euros, the National Bank announced on Wednesday. According to current prognoses, the losses should be smaller in the coming years.
The loss of 3.679 billion euros is also the biggest loss of the past three years. In 2022 the NBB 580 million dived into red, in 2023 it was 3.37 billion euros.
The losses are a consequence of the rising interest in recent years. During the coronacrisis, the central banks bought massive debt paper on low interest rates. The interest rate rose afterwards, so central banks have to pay more to normal banks that park their money at the central bank. That effect should decrease in the coming years.
Profitable within five years
If the current interest rate reasons are released, the losses will gradually become smaller in the coming years, says Nationale Bank in a press release. She should then be profitable again within five years. The institution does add that it is a lot of uncertainty around the prognoses.
The losses are covered by certain buffers, but they are now used up. That has no consequences for stability or continuity, says the NBB. count. “A central bank can, if necessary, continue to perform its duties with a negative capital position, without jeopardizing the continuity of the company.”
No dividend is paid for the 2024 financial year.