The Bank of Finland concluded its 2024 fiscal year without generating any profit, mirroring the outcome from the prior year, as escalated interest costs on central bank deposits continued to impact earnings. The institution recorded an operational deficit of €1.03 billion, which was entirely balanced by diminishing existing financial reserves.
On Thursday, the Parliamentary Supervisory Council ratified the financial reports, following a suggestion from the Bank’s Board.
“The interest had to be paid on central bank deposits significantly diminished the Bank of Finland’s operating surplus for 2024,” remarked Marja Nykänen, Deputy Governor of the Bank of Finland. “The Bank’s equity remained robust.”
The principal reason for the deficit was the elevated interest being paid on commercial bank deposits at the central bank. This interest expenditure peaked at €3.7 billion in 2024, vastly surpassing the income generated from the Bank’s assets. The net interest revenue logged at €-1.1 billion, reflecting a drop of €64 million compared to 2023.
The European Central Bank (ECB) commenced increasing rates in 2022 to combat inflation, reaching its highest point in September 2023 when the deposit facility rate hit 4.0%. Although rates began to decrease in mid-2024, the average annual deposit rate remained significantly high at 3.73%, constraining the effect of the reductions on the annual outcome.
To counterbalance the deficit, the Bank of Finland utilized its remaining general provision and decreased its provision against real value depreciation by €241 million. Consequently, no operational profit was left.
- Osun 2026 : Davido Appointed Head of Youth Mobilization
Governor Ademola Adeleke appoints Davido as Head of Youth Mobilisation ahead of the 2026 Osun election. See what this means for the campaign. - COVID-19 Case Confirmed in Cross River: What Residents Need to Know Right Now
A new COVID-19 case has been confirmed in Cross River State. Learn how the government is responding, symptoms to watch, and what it means for residents. - APC Announces 2027 Election Timetable and Fees
The All Progressives Congress (APC) has officially unveiled its timetable and schedule of activities for the 2027 general elections, setting the stage for a series of internal processes leading to party primaries in May 2026. - Türkiye-Nigeria Military Deal: New Training Facility Signals Major Security Shift
Nigeria and Türkiye agree to establish a military training facility, boosting counterterrorism, defence cooperation, and regional security in a strategic partnership.
Assets in monetary policy securities, mainly Finnish government bonds, declined from €90 billion to €82 billion throughout the year. While new securities were not acquired, existing bonds persist on the balance sheet due to their long durations.
The Bank emphasized the structural interest rate imbalance on its balance sheet. While numerous assets yield fixed returns, liabilities, such as deposits, are tied to variable interest rates, exposing the institution to persistent interest rate risk.
Central banking profits, encompassing earnings from monetary policy operations across the Eurosystem, amounted to €-937 million, an enhancement from €-1.03 billion in 2023. The operating expenses for the Bank and the Financial Supervisory Authority (FIN-FSA) totaled €73 million.
The comprehensive financial reports were published on 28 March in Finnish, with English and Swedish editions slated for release in April.