ROME (Reuters) – The Bank of Italy will pay around 644 million euros ($697.65 million) into state coffers despite posting a 2024 gross loss of 7.3 billion euros due to the European Central Bank’s restrictive monetary policy, governor Fabio Panetta said on Monday.
The Bank of Italy’s financial results announced by Panetta showed a net profit of 844 million euros, of which 200 million will be paid in dividends to its shareholders made up of banks, insurers and other financial institutions.
Profit for the state is 644 million euros, up 29 million from 2023, Panetta said.
The bank’s financial result excluding taxes was a loss of 7.3 billion euros, which was covered thanks to 5.8 billion euros taken from its risk management fund and to tax-related adjustments.
In 2023 it registered a similar pre-tax loss of 7.1 billion euros.
Explaining the drivers of the 2024 loss, Panetta said high ECB rates led to an increase in the remuneration of liabilities – mainly banks’ deposits.
This was not matched by a corresponding increase in the return on monetary policy assets.
With interest rates having been on a downward path since last June, the Bank of Italy expects a positive result this year, Panetta said.
($1 = 0.9231 euros)
(Reporting by Giuseppe Fonte)
