The National Bank of Belgium (BNB) recorded a €1.52-billion loss in 2025, marking its fourth consecutive year in deficit, according to its latest annual financial report, released on Wednesday.
The losses stem from the effects of the Coronavirus crisis.
During the pandemic, central banks purchased large amounts of debt securities at low interest rates. As interest rates later rose, central banks had to pay more to banks that had deposited money with them.
In the past year, the European Central Bank lowered interest rates again, reducing the BNB’s interest expenses. However, the losses persisted.
The BNB also cited high volatility in stock and bond markets as a contributing factor.
The Bank anticipates continued losses in the coming years but expects these to decrease gradually. It projects a return to profitability within five years.
However, a higher-than-expected interest rate could increase losses, while a sharp rate drop would reduce them, the bank cautioned.
Because of the negative results, no dividend will be distributed this year, the Bank said.
