German Federal Bank (Bundesbank)

Performance indicators

2024: Losses of €19.2 billion

At the end of 2024, the German Federal Bank (Central Bank of Germany) suffered losses of €19.2 billion - this is the first loss since 1979. Financial indicators were significantly influenced by monetary policy measures taken in the context of the emerging macroeconomic situation and the deteriorating geopolitical situation. This is stated in a report published on February 25, 2025.

In 2023, the German Central Bank reported losses of €21.6 billion, but they were covered thanks to the release of the accumulated allocations of €19.2 billion and the redirection of €2.4 billion from reserves. As a result, the regulator was able to close 2023 without loss.

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Фото: Bundesbank

The head of the German Federal Bank, Joachim Nagel, said that the country's economy is suffering from constant stagnation. In the future, further losses are not excluded, but they are said to be lower than the losses recorded in 2024. High energy prices, a shift toward renewables and demographic changes are putting significant pressure on export-oriented industries, Nagel said. Many local companies also complain of high tax burdens and growing bureaucracy.

The German federal bank will reportedly carry the recorded losses forward and offset them with expected profits. Nagel also said that the inflation rate in 2024, measured on the basis of the harmonized Consumer Price Index (HICP), has decreased: the average annual figure in Germany was about 2.5%. However, it still exceeds the medium-term target of 2%.

We expect a steady return to 2% in terms of inflation in the country in 2026, - said the President of the German Federal Bank.[1]

2023: Plan to cut 5% of staff as recommended by BCG

In September 2023, it became known that the Central Bank Germany intends to cut about 5% of jobs as part of the "modernization process." Unrest has been brewing in the Bundesbank, a conservative and secretive pillar of the German establishment, since Joachim Nagel became its president in 2022 and hired to Boston Consulting Group make it more flexible and effective, she wrote [1] FT

Representatives of the Central Bank of Germany are outraged by the plan of "modernization." "The mood among employees is at the very bottom," one insider said. "BCG has no idea how the central bank operates and what its legal responsibilities are. They compared the work on monetary policy to the production of cars, which is complete nonsense. "

2019: €6bn profit

Bank profit and loss

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