
The European Central Bank posted a €1.3 billion loss for 2025, a sharp improvement from the €7.9 billion deficit recorded in 2024. The turnaround stems mainly from a dramatic reduction in net interest expense as liability remuneration rates fell and TARGET balances shrank. The ECB’s balance sheet contracted by €37 billion to €603 billion, while gold holdings rose to €1.27 trillion, boosting its revaluation accounts. No profit distribution will be made to euro‑area national central banks, but the bank expects to return to profitability in 2026, subject to interest‑rate and FX developments.

Christine Lagarde told the European Parliament that euro‑area inflation has fallen sharply, reaching 1.7% in January and hovering near the ECB’s 2% target. Despite the data, surveys show households still perceive price growth about 1.2 percentage points higher than official...

The European Central Bank released its consolidated banking data for end‑September 2025, covering 336 banking groups and 2,289 stand‑alone credit institutions across the EU‑27. Total assets rose 0.95 % to €33.44 trillion, while the non‑performing loan ratio edged up to 1.97 %. Return on...