Notes on the profit and loss account 2025

In 2025, the Governing Council of the ECB continued lowering the key ECB interest rates. The policy rates were lowered a total of four times during the year. The interest rate on the main refinancing operations fell from 3.15% to 2.15%, and the average interest rate in these operations was 2.41%. The deposit facility rate fell from 3.0% to 2.0%, and the average rate was 2.26%. As a consequence of the policy rate cuts, the Bank of Finland’s interest expenses decreased, but interest income contracted correspondingly, resulting to a negative net interest income for the Bank of Finland in 2025. 

1. Interest income 

Interest income from non-euro area residents and from euro area residents totalled EUR 2,001.8 million. Of this, EUR 489.0 million consisted of interest income denominated in foreign currency and EUR 1,512.8 million of interest income denominated in euro. 

ESCB items – claims equivalent to the transfer of foreign reserves to the ECB, claims and liabilities relating to the ECB’s share of euro banknotes and to the application and adjustment of the ECB capital key, as well as TARGET balances – are remunerated at the deposit facility rate (i.e. the overnight deposit rate). In 2025, these items generated interest income totalling EUR 886.6 million.

2. Interest expense 

Interest expense to non-euro area residents and to euro area residents totalled EUR 2,228.5 million. The majority of this, EUR 1,892.5 million, arose from the remuneration of commercial banks’ deposits with the Bank of Finland. Interest expense denominated in foreign currency amounted to EUR 122.9 million.

3. Net interest income

4. Foreign exchange rate differences 

This item consists of realised exchange rate gains and losses arising from the sale of currency positions. In 2025, these gains amounted to EUR 14.3 million. 

5. Securities price differences 

This item consists of realised gains and losses arising from the sale of securities. In 2025, realised gains from the sale of securities amounted to EUR 209.0 million. 

6. Valuation losses related to currencies and securities 

This item consists of valuation losses related to currencies and securities. Securities and currencies are accounted for on a security-by-security and currency-by-currency basis. In 2025, the Japanese yen depreciated, resulting in a valuation loss of EUR 98.4 million in connection with foreign currency valuation. Correspondingly, a valuation loss of EUR 37.5 million was recorded for special drawing rights (SDRs). Valuation losses related to securities amounted to EUR 12.5 million. 

7. Change in foreign exchange rate and price difference provision 

Owing to realised net gains arising from foreign exchange rate and price differences, totalling EUR 80.6 million, the foreign exchange rate and price difference provision was adjusted upwards by an equal amount in accordance with the accounting policies. All provisions are specified in the notes on the balance sheet under liabilities. 

8. Income and expenses on fees and commissions 

The item consists of fees and commissions related to investment activities. 

9. Net result of pooling monetary income

This item contains the net result of pooling monetary income for 2025, amounting to an income of EUR 111.4 million in comparison to an income of EUR 174.3 in the previous year. 

The amount of each Eurosystem NCB’s monetary income is determined by measuring the annual income that derives from the earmarkable assets held against its liability base. Any interest paid on liabilities included within the liability base is to be deducted from the monetary income to be pooled. Where the value of an NCB’s earmarkable assets exceeds or falls short of the value of its liability base, the difference shall be offset by applying the latest available interest rate applied to the deposit facility offered by the Eurosystem to the value of the difference. 

The items comprising the earmarkable assets and the liability base, as well as the applicable remuneration rates, are presented in the Table below.

The monetary income pooled by the Eurosystem is allocated among the NCBs according to the subscribed ECB capital key. The difference between the monetary income pooled by the Bank of Finland amounting to EUR 337.0 million and reallocated to the Bank of Finland amounting to EUR 448.4 million is the net result arising from the calculation of monetary income. 

10. Share in ECB profit 

The ECB did not distribute any profit for the financial years 2024 and 2025. 

11. Income from other equity instruments and participating interests 

This item consists of dividends received on shares in the BIS, EUR 4.8 million. 

12. Other income 

This item consists of income of the Financial Supervisory Authority (FIN-FSA), EUR 47.0 million. The item also includes income from real estate, EUR 4.8 million, and commissions and fees. 

13. Staff costs

Fringe benefits (meal, phone and car) paid to the members of the Board amounted to EUR 48,511.16. 

Pension provision for the Bank of Finland’s employees is governed by the Public Sector Pensions Act (81/2016). A member of the Board whose term of office has ended may be paid compensation for loss of income if, due to the post-employment cooling-off rules, the person is unable to accept employment elsewhere, or if the pension paid by the Bank of Finland is lower than the compensation for loss of income. The full compensation for loss of income amounts to 60% of salary and is paid for a period of one year, adjusted with the pension paid by the Bank of Finland so that the two together do not exceed 60% of the salary. 

14. Pension fund contribution 

Approved by the Parliamentary Supervisory Council, the Bank of Finland paid a contribution of EUR 10 million to the Bank’s pension fund. 

15. Administrative expenses

This item consists of rents, meeting and interest group-related costs, expenses arising from the purchase of services and cost of equipment. Expenses arising from training, travel and recruitment of staff are also recorded under this item. 

16. Depreciation of fixed assets

17. Banknote production services 

Costs related to banknote production services totalled EUR 4.9 million. 

18. Other expenses 

The majority of other expenses are related to collection costs, exchange rate and rounding differences and other similar costs. 

19. Income of the pension fund 

This item consists of the Bank of Finland’s and the FIN-FSA’s employer contributions and employees’ share of premium income, totalling EUR 15.1 million, and the contribution of EUR 10 million paid by the Bank to the pension fund. The item also includes interest income on the pension fund’s investment activities, EUR 13.4 million, and income on the fund’s real estate, EUR 2.0 million. 

20. Expenses of the pension fund 

This item consists of pensions paid, EUR 33.5 million, the pension fund’s management costs and depreciation of the fund’s fixed assets. 

21. Changes in provisions 

This item consists of a downward adjustment of the general provision, EUR 215 million. All provisions are specified in the notes on the balance sheet under liabilities. 

22. Profit for the financial year

 Profit for the financial year 2025 totalled EUR 0.00. 

Post-balance-sheet events

Pursuant to Council Decision (EU) 2025/1407 of 8 July 2025, taken in accordance with Article 140(2) of the Treaty on the Functioning of the European Union, Bulgaria adopted the single currency on 1 January 2026. In accordance with Article 48.1 of the Statute of the ESCB and the legal acts adopted by the Governing Council on 31 December 2025,Decision ECB/2025/44 of 31 December 2025 on the paying-up of capital, transfer of foreign reserve assets and contributions by Българска народна банка (Bulgarian National Bank) to the European Central Bank’s reserves and provisions OJ L, 2026/115, 15 January 2026; Agreement of 30 December 2022 between Българска народна банка (Bulgarian National Bank) and the European Central Bank regarding the claim credited to Българска народна банка (Bulgarian National Bank) by the European Central Bank under Article 30.3 of the Statute of the European System of Central Banks and of the European Central Bank, OJ C, 2026/497, 22 January 2026. Българска народна банка (Bulgarian National Bank) paid up the remainder of its capital subscription to the ECB. In accordance with Article 48.1, in conjunction with Article 30.1, of the Statute of the ESCB, the Bulgarian National Bank transferred foreign reserve assets to the ECB in an amount corresponding to its subscribed capital share. As a result of the change in the capital key following the Bulgarian National Bank’s entry into the Eurosystem, the Bank of Finland’s share in the ECB’s paid up capital declined from 1.8165% to 1.7950%. The Bank of Finland’s share in the ECB’s subscribed capital is 1.4853%.