Non-final working translation

Tables

Gold reserves by storage location
Receivables from the IMF
Balances with banks and security investments, external loans and other external assets
Net foreign exchange positions in selected currencies
Lending to euro area credit institutions related to monetary policy operations denominated in euro
Securities held for monetary policy purposes
Tangible and intangible assets
Own funds portfolio
Provisions
Discount rates and trends
Revaluation accounts
Net equity
Net interest income
Interest income from monetary policy portfolios
Realised gains/losses arising from financial operations
Write-downs on financial assets and positions
Net income from fees and commissions
Staff costs

Abbreviations and symbols

. Figure not meaningful
0 Less than 0.5 but more than nil
- Nil

Discrepancies in the totals are due to rounding.

Balance sheet of the Deutsche Bundesbank as at 31 December 2025

Assets
					31.12.2024
				€ million	€ million
1	Gold and gold receivables			395,215	270,580
	of which: gold receivables €459,951.79				(0)
2	Claims on non-euro area residents denominated in foreign currency
	2.1	Receivables from the IMF	54,729		(59,155)
	2.2	Balances with banks and security investments, external loans and other external assets	31,851		(33,970)
				86,580	93,125
3	Claims on euro area residents denominated in foreign currency			851	0
4	Claims on non-euro area residents denominated in euro			3,975	588
5	Lending to euro area credit institutions related to monetary policy operations denominated in euro
	5.1	Main refinancing operations	5,256		(2,009)
	5.2	Longer-term refinancing operations	3,187		(3,500)
	5.3	Fine-tuning reverse operations	–		(–)
	5.4	Structural reverse operations	–		(–)
	5.5	Marginal lending facility	–		(–)
				8,443	5,509
6	Other claims on euro area credit institutions denominated in euro			7,368	8,926
7	Securities of euro area residents denominated in euro
	7.1	Securities held for monetary policy purposes	789,371		(910,918)
	7.2	Other securities	–		(–)
				789,371	910, 918
8	Claims on the Federal Government			3,550	3,995
9	Intra-Eurosystem claims
	9.1	Participating interest in the ECB	2,786		(2,786)
	9.2	Claims equivalent to the transfer of foreign reserves to the ECB	10,802		(10,802)
	9.3	Claims related to TARGET	1,023,482		(1,046,318)
	9.4	Net claims related to the allocation of euro banknotes within the Eurosystem	–		(–)
	9.5	Other claims within the Eurosystem (net)	–		(–)
				1,037,070	1,059,906
10	Items in course of settlement			1	1
11	Other assets
	11.1	Coins	689		(726)
	11.2	Tangible and intangible fixed assets	709		(759)
	11.3	Other financial assets	6,066		(6,084)
	11.4	Off-balance-sheet instruments revaluation differences	0		(0)
	11.5	Accruals and prepaid expenses	7,933		(9,787)
	11.6	Sundry	1,157		(1,744)
				16,554	19,099
				2,348,978	2,372,647

					Liabilities
					31.12.2024
			€ million		€ million
1	Banknotes in circulation			396,778	389,136
2	Liabilities to euro area credit institutions related to monetary policy operations denominated in euro
	2.1	Current accounts	69,713		(76,527)
	2.2	Deposit facility	753,917		(883,694)
	2.3	Fixed-term deposits	–		(–)
	2.4	Fine-tuning reverse operations	–		(–)
	2.5	Deposits related to margin calls	–		(–)
				823,630	960,220
3	Other liabilities to euro area credit institutions denominated in euro			3,325	8,835
4	Liabilities to other euro area residents denominated in euro
	4.1	General government deposits	10,233		(20,348)
	4.2	Other liabilities	40,923		(13,897)
				51,156	34,245
5	Liabilities to non-euro area residents denominated in euro			55,978	90,748
6	Liabilities to euro area residents denominated in foreign currency			0	1
7	Liabilities to non-euro area residents denominated in foreign currency			–	–
8	Counterpart of special drawing rights allocated by the IMF			43,811	47,149
9	Intra-Eurosystem liabilities
	9.1	Liabilities related to TARGET	–		(–)
	9.2	Net liabilities related to the allocation of euro banknotes within the Eurosystem	593,107		(567,191)
	9.3	Other liabilities within the Eurosystem (net)	1,701		(5,445)
				594,807	572,637
10	Items in course of settlement			0	0
11	Other liabilities
	11.1	Off-balance-sheet instruments revaluation differences	–		(–)
	11.2	Accruals and income collected in advance	3,331		(5,320)
	11.3	Sundry	1,416		(2,030)
				4,748	7,350
12	Provisions
	12.1	Provision for general risk	–		(–)
	12.2	Other provisions	12,200		(11,695)
				12,200	11,695
13	Revaluation accounts			387,831	267,285
14	Capital and reserves
	14.1	Capital	2,500		(2,500)
	14.2	Reserves	–		(–)
				2,500	2,500
15	Accumulated loss			−⁠ 27,787	−⁠ 19,153
				2,348,978	2,372,647

Profit and loss account of the Deutsche Bundesbank for the year 2025

					2024
			€ million		€ million
	1.1	Interest income	33,070		(55,959)
	1.2	Interest expense	−⁠ 37,238		(−⁠ 69,018)
1	Net interest income			−⁠ 4,167	−⁠ 13,059
	2.1	Realised gains/losses arising from financial operations	530		(1,184)
	2.2	Write-downs on financial assets and positions	−⁠ 756		(−⁠ 324)
2	Net result of financial operations and write-downs			−⁠ 226	860
3	Net result of pooling monetary income			−⁠ 1,669	−⁠ 5,434
4	Net income from fees and commissions			57	60
5	Income from participating interests			22	23
6	Other income			164	187
7	Staff costs			−⁠ 1,798	−⁠ 1,477
8	Administrative expenses			−⁠ 802	−⁠ 747
9	Depreciation of tangible and intangible fixed assets			−⁠ 103	−⁠ 117
10	Banknote production services			−⁠ 76	−⁠ 77
11	Other expenses			−⁠ 36	−⁠ 33
12	Transfer to/from provision for general risk			–	–
	Loss for the year			−⁠ 8,633	−⁠ 19,814
13	Allocation to/withdrawal from reserves			–	661
14	Accumulated losses carried forward			−⁠ 19,153	–
	Accumulated loss			−⁠ 27,787	−⁠ 19,153

Frankfurt am Main, 17 February 2026

DEUTSCHE BUNDESBANK

Executive Board

Professor Joachim Nagel Dr Sabine Mauderer

Burkhard Balz Professor Fritzi Köhler-Geib Lutz Lienenkämper

Michael Theurer

Overview of the Deutsche Bundesbank’s accounting policies

General accounting principles

Reflection of economic reality, thus giving a true and fair view of the Bundesbank’s net assets, financial position and results of operations; prudence; recognition of post-balance-sheet events; materiality; going-concern basis; accruals principle; consistency and comparability.

Recognition of spot transactions

Spot transactions denominated in gold and foreign currency shall be accounted for from the trade date to determine the average cost and the realised gains and realised losses. Recognition of these spot transactions and of spot transactions in securities shall be based on the cash/settlement approach.

Valuation rules

Gold, foreign currency instruments, securities and financial instruments shall be valued at mid-market rates and prices as at the balance sheet date. Securities held to maturity shall be valued at amortised cost; write-downs are charged if impairment is expected to be permanent. The same applies to non-marketable securities and securities held for monetary policy purposes by virtue of a decision adopted by the Governing Council of the ECB.

No distinction shall be made between price and currency revaluation differences for gold, but a single gold revaluation difference shall be accounted for, based on the euro price per defined unit of weight of gold derived from the euro/US dollar exchange rate as at the balance sheet date.

Revaluation shall take place on a currency-by-currency basis for foreign currency instruments (including off-balance-sheet transactions).

In the case of securities, each revaluation shall take place on a code-by-code basis (same ISIN number/type).

Repurchase agreements

A repurchase agreement (repo) shall be recorded as a collateralised inward deposit on the liabilities side of the balance sheet, while the assets serving as collateral remain on the assets side of the balance sheet. A reverse repurchase agreement (reverse repo) shall be recorded as a collateralised outward loan on the assets side of the balance sheet for the amount of the loan.

In the case of lending transactions, the assets shall remain on the transferor’s balance sheet. Lending transactions where collateral is provided in the form of cash shall be accounted for in the same manner as that prescribed for repurchase operations.

Income recognition

Realised gains and realised losses can arise only in the case of transactions which reduce a securities or foreign currency position. They shall be derived from a comparison of the transaction value with the acquisition value as calculated using the average cost method; they shall be taken to the profit and loss account.

Revaluation gains and losses shall accrue from the revaluation of assets at market values compared to their acquisition value as calculated using the average cost method. Unrealised gains shall not be recognised as income but recorded in a revaluation account.

Unrealised losses shall be taken to the profit and loss account if they exceed previous revaluation gains registered in the revaluation account. Unrealised losses taken to the profit and loss account in prior periods shall not be reversed in subsequent years against new unrealised gains. Unrealised losses in any one security, in any currency or in gold holdings shall not be netted against unrealised gains in other securities, currency or gold.

The average cost method shall be used on a daily basis to compute the acquisition cost of assets subject to exchange rate and/or price movements. The average acquisition cost of the assets shall be reduced by unrealised losses taken to the profit and loss account at year-end.

In the case of securities, the difference between the acquisition and redemption value (premium or discount) shall be amortised over the remaining contractual life of the securities in accordance with the internal rate of return method, presented as part of interest income (amortisation) and included in the acquisition value (amortised cost).

Accruals denominated in foreign currency shall be translated at the mid-market rate on each business day and change the respective foreign currency position.

Accounting rules for off-balance-sheet instruments

Foreign exchange forward transactions, forward legs of foreign exchange swaps and other currency instruments involving an exchange of one currency for another at a future date shall be included in the net foreign currency position as from the trade date.

Interest rate swaps, futures, forward rate agreements and other interest rate instruments shall be accounted for and valued on an item-by-item basis.

Profits and losses arising from off-balance-sheet instruments shall be recognised and treated in a similar manner to those from on-balance-sheet instruments.

Tangible and intangible fixed assets

Tangible and intangible fixed assets shall be valued at cost less depreciation and amortisation. Depreciation and amortisation shall be calculated on a straight-line basis and applied over the expected economic life of the asset. A distinction shall be made as follows:

computers, related hardware and software, and motor vehicles: 4 years;
equipment, furniture and plant in building: 10 years;
building and refurbishment expenditure: 25 years;
depreciation shall not apply to land.

Tangible and intangible fixed assets costing less than €10,000 after deduction of value added tax shall be written off in full in the year of acquisition.

Provisions

With the exception of the provisions for Eurosystem monetary policy operations, provisions shall be accounted for in accordance with the regulations set forth in the Commercial Code (Handelsgesetzbuch). Pursuant to Section 26(2) of the Bundesbank Act (Bundesbankgesetz), it shall be possible to create a provision for general risk associated with domestic and foreign business.

Transitional arrangements

The assets and liabilities shown on the closing Deutsche Mark balance sheet as at 31 December 1998 shall be revalued as at 1 January 1999. Unrealised gains arising on or before 1 January 1999 shall be recorded separately from the unrealised gains which arise after 1 January 1999. The market rates/prices applied by the Bundesbank on the euro-denominated opening balance sheet as at 1 January 1999 shall be deemed to be the average acquisition rates/prices as at 1 January 1999. The revaluation accounts for unrealised gains accruing on or before 1 January 1999 shall be released only in connection with revaluation losses and in the event of disposals after 1 January 1999.

Notes on the annual accounts: general information

Legal basis

Sections 26 and 27 of the Bundesbank Act (Gesetz über die Deutsche Bundesbank) form the legal basis for the annual accounts and distribution of profit. According to the provisions on accounting laid down in Section 26(2) sentence 2 of the Bundesbank Act, the annual accounts shall be drawn up with due regard to the tasks of the Deutsche Bundesbank, in particular those deriving from its being an integral part of the European System of Central Banks (ESCB), and shall be published with appropriate notes thereon. Consistent with this, the Bundesbank is allowed to apply the ECB’s accounting policies.

Accounting policies of the Bundesbank

The Governing Council of the ECB adopted policies for the ECB’s annual accounts in accordance with Article 26.2 of the Statute of the ESCB. The Bundesbank decided to adopt these policies as its own accounting policies.[1] An overview of the Deutsche Bundesbank’s accounting policies can be found in the above supplementary information. The annual accounts of the Bundesbank thus follow the harmonised accounting and financial reporting rules of Eurosystem operations, both in terms of the structure of the balance sheet and the profit and loss account, and with regard to the valuation and accounting policies applied.

Cost accounting at the Bundesbank

The Bundesbank is furthermore required, pursuant to Section 26(4) sentence 1 of the Bundesbank Act, to prepare a cost account to assist it in its management and administrative tasks. In compliance with this legislation, the Bank draws up a standard cost account and an investment plan before the start of each financial year. The harmonised Eurosystem accounting policies for internal accounting adopted by the Governing Council of the ECB and compiled in the Committee on Controlling (COMCO) manual are also taken into account in this regard. At the end of the financial year, the Bank makes a comparative analysis of the budgeted figures and the actual costs and investment. This analysis is reviewed separately by the external auditors.

Creation of reserves owing to the restriction on distribution pursuant to Section 253(6) of the Commercial Code

Pursuant to Section 253 of the German Commercial Code (Handelsgesetzbuch), provisions for post-employment benefit obligations must be discounted at the average market rate corresponding to their residual maturity calculated over the past ten financial years (see liability sub-item 12.2 “Other provisions”). The relief resulting from application of the ten-year rather than the seven-year observation period must be calculated annually and may not be distributed. In accordance with Section 253(6) sentence 2 of the Commercial Code, the distribution of profits shall be restricted to the part that exceeds the amount for which distribution is restricted less any disposable reserves. However, the Bundesbank does not have any such reserves. The amount for which distribution is restricted itself has to be treated as reserves, and transfers to them and withdrawals from them are taken to profit and loss once the profit or loss for the year has been determined as part of the appropriation of profit (see liability item 14 “Capital and reserves” and profit and loss item 13 “Allocation to/withdrawal from reserves”). The reserves owing to the restriction on distribution were released in full in the annual accounts 2024 in order to reduce the loss for the year.

Recognition of euro banknotes and …

The ECB and the national central banks of the euro area countries, which together comprise the Eurosystem, issue banknotes denominated in euro. The following allocation procedure[2] was approved for recognition of the euro banknotes in circulation in the financial statements of the individual central banks of the Eurosystem. The respective share of the total value of euro banknotes in circulation due to each central bank in the Eurosystem is calculated on the last business day of each month in accordance with the key for allocating euro banknotes. The ECB is allocated an 8 % share of the total value of the euro banknotes in circulation, whereas the remaining 92 % is allocated to the national central banks in proportion to their respective paid-up shares in the capital of the ECB. As at 31 December 2025, the Bundesbank had a 26.6 % share in the fully paid-up capital of the ECB and, therefore, a 24.5 % share of the euro banknotes in circulation in accordance with the banknote allocation key. The value of the Bundesbank’s share in the total amount of euro banknotes issued by the Eurosystem is shown in item 1 “Banknotes in circulation” on the liabilities side of the balance sheet.

… of intra-Eurosystem balances arising from the allocation of euro banknotes

The difference between the value of the euro banknotes allocated to each central bank of the Eurosystem in accordance with the banknote allocation key and the value of the euro banknotes that the central bank actually puts into circulation gives rise to remunerated intra-Eurosystem balances.[3] If the value of the euro banknotes actually issued is greater than the value according to the banknote allocation key, the difference is recorded on the balance sheet as an intra-Eurosystem liability in liability sub-item 9.2 “Net liabilities related to the allocation of euro banknotes within the Eurosystem”. If the value of the euro banknotes actually issued is less than the value according to the banknote allocation key, the difference is recorded in asset sub-item 9.4 “Net claims related to the allocation of euro banknotes within the Eurosystem”. These balances are remunerated at the respective deposit facility rate.

In the year of the cash changeover and in the following five years, the intra-Eurosystem balances arising from the allocation of euro banknotes within the Eurosystem are adjusted in order to avoid significant changes in national central banks’ relative income positions as compared to previous years. The adjustments are based on the difference between the average value of the banknotes that each national central bank had in circulation in the reference period and the average value of the banknotes that would have been allocated to each of them during that period in accordance with the ECB’s capital key. The adjustments are reduced in annual increments until the first day of the sixth year after the cash changeover year. Thereafter, income from euro banknotes in circulation is allocated fully in proportion to the national central banks’ paid-up shares in the ECB’s capital.

The adjustment in the reporting year resulted from the accession of the Croatian National Bank with effect from 1 January 2023. This will expire accordingly with effect from 31 December 2028. The interest income and expense arising from the remuneration of the intra-Eurosystem balances is cleared through the accounts of the ECB and disclosed under item 1 “Net interest income” of the Bundesbank’s profit and loss account. The Bulgarian central bank acceded to the Eurosystem with effect from 1 January 2026. The resulting adjustment will run until 31 December 2031.

ECB’s interim profit distribution

The ECB’s income from the 8 % share of the euro banknotes in circulation as well as from securities purchased by the ECB as part of the securities markets programme (SMP), the third covered bond purchase programme (CBPP3), the asset-backed securities purchase programme (ABSPP) and the public sector purchase programme (PSPP) as well as the pandemic emergency purchase programme (PEPP) is distributed to the national central banks of the Eurosystem as interim profit in the same financial year in which the income arises, unless the ECB’s net profit is less than this income or the Governing Council of the ECB decides to retain the amount for allocation to the ECB risk provision.[4] No interim profit was distributed for financial year 2025 as the ECB is reporting a loss, as in the previous year. The ECB losses are not reflected in the Bundesbank’s annual accounts for 2025, but are carried forward on the ECB’s balance sheet. That loss carried forward will, however, place a (pro rata) burden on future annual results of the Bundesbank because ECB profit distributions will not be made.

Change to the ECB’s capital key with effect from 1 January 2026

Effective 1 January 2026, the Eurosystem grew in size as a result of the accession of the Bulgarian National Bank, which thereupon paid up its capital share in the ECB in full. This reduced the Bundesbank’s share in the fully paid-up capital of the ECB to 26.3152 %.

Change in the interest rate used for the remuneration of intra-Eurosystem balances as of 1 January 2025

On 13 March 2024, the Governing Council of the ECB decided on changes to the operational framework for implementing monetary policy to ensure that the framework remains appropriate as the Eurosystem balance sheet normalises. In addition to other key parameters and features of the operational framework, it was agreed that the monetary policy stance would continue to be steered through the deposit facility rate. As a result, the Governing Council of the ECB decided that, as of 1 January 2025, the applicable deposit facility rate, rather than the main refinancing rate, should be used for the remuneration of claims or liabilities related to TARGET, net claims or liabilities related to the allocation of euro banknotes within the Eurosystem, and claims equivalent to the transfer of foreign reserves to the ECB. The same rule applies to the calculation of monetary income: the difference between the value of a national central bank’s earmarked assets and the value of its liability base will be remunerated, as of 1 January 2025, at the deposit facility rate, as will the income for government bonds purchased under the PSPP and PEPP without pooling risk and returns.

Preparation and auditing of financial statements

The Executive Board prepared the Deutsche Bundesbank’s financial statements – consisting of the balance sheet and the profit and loss account – for financial year 2025 on 17 February 2026. The financial statements were audited by Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft (Düsseldorf), whom the Executive Board engaged as external auditors on 1 September 2020 in accordance with Section 26(3) of the Bundesbank Act. The audit furthermore covered the notes on the annual financial statements, consisting of general information, notes on the individual balance sheet items as well as notes on the profit and loss account. The auditors issued an unqualified audit opinion on 24 February 2026 confirming that the Bundesbank’s financial statements for 2025 comply, in all material respects, with the legal requirements and the accounting policies of the Deutsche Bundesbank approved by the Executive Board and give a true and fair view of the net assets, financial position and results of operations of the Deutsche Bundesbank in accordance with German principles of proper accounting and with regard to the notes on the annual financial statements. After studying the external auditors’ unqualified audit opinion, the Executive Board decided that publication of the financial statements would take place on 5 March 2026.

Notes on the individual balance sheet items

Assets

1 Gold and gold receivables

**Table 1: Gold reserves by storage location**
Storage location	31.12.2025		31.12.2024		Year-on-year change
Storage location	Tonnes	€ million	Tonnes	€ million	Tonnes	%	€ million	%
Deutsche Bundesbank, Frankfurt	1,710	201,727	1,710	138,058	−⁠ 0	−⁠ 0.0	63,669	46.1
Federal Reserve Bank, New York	1,236	145,831	1,236	99,804	–	–	46,027	46.1
Bank of England, London	404	47,657	405	32,717	−⁠ 1	−⁠ 0.3	14,940	45.7
Total	3,350	395,215	3,352	270,579	−⁠ 1	−⁠ 0.0	124,635	46.1

As at 31 December 2025, the Bundesbank’s physical holdings (bars) of fine gold amounted to 3,350,285 kg, or 108 million fine ounces (ozf). These are supplemented by an additional 4 kg of gold receivables that were generated by the settlement of margins in the context of gold transactions. The gold was valued at the market price at the end of the year (1 kg = €117,964.50, or 1 ozf = €3,669.106). Compared with the previous year’s price (1 kg = €80,732.74, or 1 ozf = €2,511.069), this represents an increase of 46.1 %. The gold holdings declined by 0.04 % (1,260 kg, or 0.04 million ozf) in the year under review. This was due to the sale of gold to the Federal Government at market prices for the purpose of minting gold coins. The resulting income of €112 million is shown in sub-item 2.1 “Realised gains/losses arising from financial operations” in the profit and loss account.

2 Claims on non-euro area residents denominated in foreign currency

This item comprises the receivables from the International Monetary Fund (IMF) as well as balances with banks and security investments, loans and other foreign currency claims on non-euro area residents.

2.1 Receivables from the IMF

Sub-item 2.1 contains the Bundesbank’s receivables from the IMF, which arise from the Federal Republic of Germany’s membership of the IMF. The receivables, which total 46,953 million special drawing rights (SDRs) (€54,729 million), are made up of the drawing rights within the reserve tranche and the holdings of special drawing rights.

**Table 2: Receivables from the** **IMF**
Item	31.12.2025		31.12.2024		Year-on-year change
Item	SDR million	€ million	SDR million	€ million	SDR million	%	€ million	%
German quota	26,634	31,045	26,634	33,410	–	–	−⁠ 2,365	−⁠ 7.1
Less euro balances	19,599	22,844	20,044	25,143	−⁠ 446	−⁠ 2.2	−⁠ 2,299	−⁠ 9.1
Drawing rights within the reserve tranche	7,036	8,201	6,590	8,267	446	6.8	−⁠ 66	−⁠ 0.8
Special drawing rights	39,918	46,528	40,568	50,888	−⁠ 650	−⁠ 1.6	−⁠ 4,360	−⁠ 8.6
Total	46,953	54,729	47,158	59,155	−⁠ 205	−⁠ 0.4	−⁠ 4,426	−⁠ 7.5

The German quota was paid partially in gold, foreign currency and special drawing rights and partially in national currency. The undrawn portion of the quota share paid up in national currency is held in the form of euro balances at the IMF’s disposal.

The SDR 7,036 million (€8,201 million) in drawing rights in the reserve tranche represent the difference between the German quota (SDR 26,634 million, or €31,045 million) and the euro balances (€22,844 million, or SDR 19,599 million). The drawing rights in the reserve tranche allow Germany to obtain freely usable currencies from the IMF at any time.

Special drawing rights – by means of which freely usable currencies as per the IMF definition can be obtained at any time – fell by SDR 650 million (€4,360 million) to SDR 39,918 million (€46,528 million) in 2025. The holdings of special drawing rights also include special drawing rights which were allocated free of charge. A corresponding counterpart is shown as liability item 8 “Counterpart of special drawing rights allocated by the IMF”.

If all items on the assets side and the liabilities side of the balance sheet are taken into account, the net holdings of special drawing rights amounted to SDR 9,406 million, compared with SDR 9,621 million in the previous year. Valuation is based on the reference rate of SDR 1 = €1.1656 (previous year: SDR 1 = €1.2544) calculated by the ECB at the end of the year for all central banks participating in the Eurosystem.

2.2 Balances with banks and security investments, external loans and other external assets

Balances with banks and security investments, loans and other foreign currency claims reported under sub-item 2.2 amounted to €31,851 million as at the end of the year, compared with €33,970 million in the previous year. These include, in particular, US dollar holdings in the amount of US$30,802 million (€26,215 million), representing an increase of US$1,630 million on the year. The sub-item also contains holdings in yen (¥202,492 million, equivalent to €1,100 million), Australian dollar (A$1,938 million, equivalent to €1,102 million), Canadian dollar (C$2,570 million, equivalent to €1,598 million), Chinese yuan (renminbi) (2,287 million yuan, equivalent to €278 million) and British pound sterling (£1,357 million, equivalent to €1,555 million), and a small amount of other currencies. The holdings are interest-bearing. The foreign currency holdings were valued at the respective end-of-year market rate.

**Table 3: Balances with banks and security investments, external loans and other external assets**
Item	31.12.2025	31.12.2024	Year-on-year change
Item	€ million	€ million	€ million	%
Current account balances and overnight deposits	1,117	960	157	16.3
Fixed-term deposits and deposits redeemable at notice	1,224	4,813	−⁠ 3,589	−⁠ 74.6
Reverse repos	340	–	340	.
Marketable securities
Government bonds
US dollar	19,261	19,430	−⁠ 169	−⁠ 0.9
Yen	769	672	97	14.4
Australian dollar	905	893	12	1.4
Canadian dollar	1,392	1,487	−⁠ 94	−⁠ 6.3
Chinese yuan (renminbi)	269	291	−⁠ 22	−⁠ 7.6
Pound sterling	1,143	1,136	7	0.6
Supranational, sovereign and agency (SSA) bonds	5,135	3,961	1,174	29.6
Subtotal	28,874	27,870	1,005	3.6
Other	295	328	−⁠ 33	−⁠ 9.9
Total	31,851	33,970	−⁠ 2,119	−⁠ 6.2

**Table 4: Net foreign exchange position (balance of all reported asset and liability items) in selected currencies**
Currency	31.12.2025		31.12.2024		Year-on-year change
Currency	Million (currency)	Market rate	Million (currency)	Market rate	Million (currency)
US dollar	32,011	1.1750	29,352	1.0389	2,658
Yen	202,688	184.09	202,651	163.06	37
Australian dollar	1,948	1.7581	1,889	1.6772	59
Canadian dollar	2,588	1.6088	2,515	1.4948	73
Chinese yuan (renminbi)	2,308	8.2262	2,283	7.5833	26
Pound sterling	1,364	0.87260	1,297	0.82918	67

3 Claims on euro area residents denominated in foreign currency

This item primarily shows the claims on euro area credit institutions arising from reverse repos transacted in foreign currency, which total €851 million (previous year: no holdings).

4 Claims on non-euro area residents denominated in euro

This item contains the loans of €3,866 million granted to foreign central banks as part of the ECB’s liquidity lines (previous year: no holdings). These bilateral swap and repo lines cover the euro liquidity needs of financial institutions in non-euro area countries via their central banks. Claims on non-euro area counterparties arising from bilateral repo transactions amounting to €109 million (previous year: €588 million) are also shown in this item. These claims result from reverse repos transacted simultaneously with repos, in which securities in the PSPP portfolio as well as PEPP public sector holdings are lent against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. The corresponding liabilities from the repos are shown under liability item 5 “Liabilities to non-euro area residents denominated in euro”.

5 Lending to euro area credit institutions related to monetary policy operations denominated in euro

The volume and structure of the liquidity-providing monetary policy operations carried out by the Bundesbank as part of the Eurosystem (main and longer-term refinancing operations and the marginal lending facility) are shown in this item.

**Table 5: Lending to euro area credit institutions related to monetary policy operations denominated in euro**
Item	31.12.2025	31.12.2024	Year-on-year change
Item	€ million	€ million	€ million	%
Main refinancing operations	5,256	2,009	3,247	161.6
Longer-term refinancing operations	3,187	3,500	−⁠ 313	−⁠ 8.9
Marginal lending facility	–	–	–	.
Total	8,443	5,509	2,934	53.3

As at the end of the reporting year, the outstanding volume of the Eurosystem’s monetary policy operations amounted to €36,707 million (previous year: €34,221 million), of which the Bundesbank accounted for €8,443 million (previous year: €5,509 million). Pursuant to Article 32.4 of the Statute of the ESCB, risks from these operations, provided they materialise, are shared among the Eurosystem national central banks in proportion to the prevailing shares in the capital of the ECB. Losses arise only if the counterparty to a monetary policy operation defaults and the collateral it has provided proves insufficient upon realisation.

Main refinancing operations are regular weekly transactions with a standard one-week maturity, the purpose of which is to provide liquidity. In the reporting year, main refinancing operations were conducted as fixed rate tenders with full allotment. The year closed with main refinancing operations amounting to €5,256 million (previous year: €2,009 million). On a daily average, the outstanding volume of main refinancing operations came to €1,317 million (previous year: €878 million).

In the year under review, the longer-term refinancing operations with maturities of three months were carried out as fixed rate tenders with full allotment at the average main refinancing rate. As at 31 December 2025, take-up of these totalled €3,187 million (previous year: €3,500 million). On a daily average, the outstanding amount decreased from €26,887 million to €2,874 million due to the final four targeted longer-term refinancing operations from the third series reaching maturity in 2024.

The marginal lending facility is a standing facility which counterparties may use to obtain overnight liquidity at a pre-specified interest rate. As in the previous year, no recourse was made to this facility at the end of 2025. Average daily use came to €59 million (previous year: €17 million).

6 Other claims on euro area credit institutions denominated in euro

This item, amounting to €7,368 million (previous year: €8,926 million), consists, in particular, of fixed-term deposits held at credit institutions totalling €6,599 million (previous year: €5,204 million), which arise from funds received in connection with central bank services (see liability item 5 “Liabilities to non-euro area residents denominated in euro”). Claims on euro area credit institutions arising from bilateral repo transactions amounting to €769 million (previous year: €3,722 million) are also included in this item. These claims result from reverse repos transacted simultaneously with repos, in which securities in the PSPP portfolio as well as PEPP public sector holdings are lent against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. The corresponding liabilities from the repos are shown under liability item 3 “Other liabilities to euro area credit institutions denominated in euro”.

7 Securities of euro area residents denominated in euro

This item contains the holdings of securities denominated in euro resulting from purchases made within the framework of the Eurosystem purchase programmes announced by the Governing Council of the ECB, which are shown under sub-item 7.1 “Securities held for monetary policy purposes”. These holdings are carried at amortised cost, irrespective of whether the securities are held to maturity.

**Table 6: Securities held for monetary policy purposes**
Portfolio	31.12.2025		31.12.2024		Year-on-year change
	Balance sheet value	Market value	Balance sheet value	Market value	Balance sheet value		Market value
	€ million	€ million	€ million	€ million	€ million	%	€ million	%
APP
CBPP3	55,238	51,799	64,884	60,603	−⁠ 9,646	−⁠ 14.9	−⁠ 8,804	−⁠ 14.5
PSPP	392,567	348,471	447,264	402,961	−⁠ 54,697	−⁠ 12.2	−⁠ 54,491	−⁠ 13.5
CSPP	53,758	50,299	63,718	59,320	−⁠ 9,960	−⁠ 15.6	−⁠ 9,021	−⁠ 15.2
Subtotal	501,564	450,568	575,867	522,884	−⁠ 74,303	−⁠ 12.9	−⁠ 72,316	−⁠ 13.8
PEPP
PEPP covered bonds	1,088	989	1,251	1,131	−⁠ 163	−⁠ 13.0	−⁠ 142	−⁠ 12.5
PEPP public sector securities	278,748	245,279	325,141	292,071	−⁠ 46,393	−⁠ 14.3	−⁠ 46,792	−⁠ 16.0
PEPP corporate sector securities	7,970	7,531	8,659	8,126	−⁠ 689	−⁠ 8.0	−⁠ 595	−⁠ 7.3
Subtotal	287,807	253,800	335,052	301,328	−⁠ 47,245	−⁠ 14.1	−⁠ 47,529	−⁠ 15.8
Total	789,371	704,368	910,918	824,213	−⁠ 121,548	−⁠ 13.3	−⁠ 119,845	−⁠ 14.5

With reinvestments under the asset purchase programme (APP) having been discontinued as of July 2023 and reinvestments under the pandemic emergency purchase programme (PEPP) discontinued as of January 2025 as per the Governing Council’s decisions of 15 June 2023 and 12 December 2024 respectively, the year under review saw holdings under the APP (with the individual sub-programmes CBPP3, PSPP and CSPP) and the PEPP decrease as assets reached maturity.

As at year-end, the Eurosystem national central banks’ holdings under the securities markets programme (SMP) – of which the Bundesbank’s portfolio is now empty, all securities having reached maturity – amounted to €521 million (previous year: €1,050 million), their CBPP3 holdings to €193,147 million (previous year: €232,571 million), their CSPP holdings to €248,543 million (previous year: €288,374 million) and their PSPP holdings of securities issued by supranational institutions (of which the Bundesbank itself did not acquire any holdings) to €197,845 million (previous year: €227,808 million). As at 31 December 2025, the Eurosystem national central banks’ PEPP holdings amounted to €4,339 million in the covered bonds portfolio (previous year: €5,097 million), to €40,965 million in the corporate sector portfolio (previous year: €45,105 million) and to €148,959 million (previous year: €158,931 million) in the portfolio of securities issued by supranational institutions (of which the Bundesbank itself did not acquire any holdings). Consistent with Article 32.4 of the Statute of the ESCB, all risks from the SMP, CBPP3, CSPP and the above-mentioned PSPP and PEPP holdings, provided they materialise, are shared among the Eurosystem national central banks in proportion to the prevailing shares in the capital of the ECB, as is the case with the income received. Risks and income resulting from the government bonds purchased under the PSPP and PEPP (including regional government bonds and bonds issued by eligible agencies located in the euro area), on the other hand, are borne or are collected, respectively, by the individual national central banks holding these bonds. For its PSPP and PEPP public sector portfolio, the Bundesbank holds only bonds issued by German issuers.

The Governing Council of the ECB decided that there was no need to recognise any impairment losses on securities contained in the SMP, CBPP3, PSPP, CSPP and PEPP portfolios as at 31 December 2025, as it is expected that all payment obligations relating to the bonds and debt securities contained in Eurosystem central banks’ holdings will continue to be met as agreed.

8 Claims on the Federal Government

This item shows the equalisation claims on the Federal Government and the non-interest-bearing debt register claim in respect of Berlin; both date back to the currency reform of 1948. They form the balance sheet counterpart of the amounts paid out at that time in cash per capita and per enterprise and of the initial provision of credit institutions and public corporations with central bank money. Equalisation claims yield interest at a rate of 1 % per annum. In conjunction with Article 123 of the Treaty on the Functioning of the European Union (the Lisbon Treaty), it has been stipulated that the equalisation claims and the debt register claim are to be redeemed in ten annual instalments, starting in 2024. The second redemption payment was made as at 31 December 2025; totalling €445 million, it brought the equalisation claims down to €3,550 million (previous year: €3,995 million).

9 Intra-Eurosystem claims

The Bundesbank’s claims on the ECB and on the national central banks participating in the Eurosystem are consolidated in this item.

Sub-item 9.1 shows the Bundesbank’s participating interest in the ECB. Pursuant to Article 28 of the Statute of the ESCB, the ESCB national central banks are the sole subscribers to the capital of the ECB. The Bundesbank’s participating interest in the ECB amounted to a nominal €2,357 million as at 31 December 2025; including the Bundesbank’s share of the ECB’s net equity, effective from 1 January 2024, it came to €2,786 million.

Sub-item 9.2 contains the Bundesbank’s euro-denominated claims equivalent to the transfer of foreign reserves to the ECB. At the beginning of 1999, the central banks participating in the Eurosystem transferred foreign reserve assets (15 % in gold and 85 % in foreign currency) to the ECB in accordance with Article 30 of the Statute of the ESCB. Adjustments to the key for subscription of the ECB’s capital also result in adjustments to the Bundesbank’s claims equivalent to the transfer of foreign reserves to the ECB. As at 31 December 2025, these claims amounted to €10,802 million, unchanged from the previous year. As the transferred gold does not earn any interest, the claims are remunerated at 85 % of the prevailing deposit facility rate.

The cross-border payments processed in TARGET result in the automatic and direct creation of a single liability to, or claim on, the ECB at the end of each business day. As at the end of the year, the Bundesbank’s claim on the ECB was €22,836 million lower at €1,023,482 million, which is contained in sub-item 9.3 “Claims related to TARGET”. This is remunerated at the respective deposit facility rate, with the exception of the unremunerated intra-Eurosystem liabilities resulting from the swap transactions between the ECB and the Bundesbank. On a daily average, the remunerated claim amounted to €1,068,571 million (previous year: €1,072,377 million).

Sub-item 9.4 “Net claims related to the allocation of euro banknotes within the Eurosystem” shows the claims which arise from applying the euro banknote allocation key. As in the previous year, the Bundesbank did not have a claim as at the end of the year but a liability, which is shown in liability sub-item 9.2 “Net liabilities related to the allocation of euro banknotes within the Eurosystem”.

Sub-item 9.5 “Other claims within the Eurosystem (net)” would show a net claim arising from other assets and liabilities within the Eurosystem. As at the end of the year, the Bundesbank had a net liability, which is reported with notes on the liabilities side under sub-item 9.3 “Other liabilities within the Eurosystem (net)”.

10 Items in course of settlement

This item contains the asset items arising from payments still being processed within the Bundesbank.

11 Other assets

The Bundesbank’s holdings of euro coins are shown in sub-item 11.1 “Coins”. New coins are received from the federal mints at their nominal value for the account of the Federal Government, which holds the coin prerogative.

Sub-item 11.2 “Tangible and intangible fixed assets” amounted to €709 million, compared with €759 million in the previous year. It comprises land and buildings, furniture and equipment including computer equipment, and software.

**Table 7: Tangible and intangible assets**
Item	Acquisition and production costs 31.12.2024	Additions	Disposals	Accumulated depreciation	Book value 31.12.2025	Book value 31.12.2024	Depreciation in 2025
Item	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Land and buildings	2,193	12	−⁠ 13	−⁠ 1,729	464	488	−⁠ 24
Furniture and equipment including computer equipment	1,158	51	−⁠ 39	−⁠ 931	239	264	−⁠ 76
Software	183	3	−⁠ 4	−⁠ 176	6	7	−⁠ 4
Total	3,534	66	−⁠ 56	−⁠ 2,835	709	759	−⁠ 103

Sub-item 11.3 “Other financial assets” amounted to €6,066 million, compared with €6,084 million in the previous year. It contains the Bundesbank’s own funds portfolio as a counterpart to its capital, reserves and long-term provisions for civil servant pensions and healthcare assistance. The own funds portfolio is invested not in government securities but primarily in euro-denominated fixed rate covered bonds from Eurosystem countries, non-Eurosystem countries and supranational issuers, which are generally held to maturity and are, therefore, valued at amortised cost.

**Table 8: Own funds portfolio**
Euro-denominated covered bonds issued in/by	31.12.2025		31.12.2024		Year-on-year change
	Balance sheet value	Market value	Balance sheet value	Market value	Balance sheet value		Market value
	€ million	€ million	€ million	€ million	€ million	%	€ million	%
Germany	2,538	2,478	3,038	2,922	−⁠ 499	−⁠ 16.4	−⁠ 444	−⁠ 15.2
France	1,331	1,281	1,143	1,074	188	16.5	207	19.3
Finland	388	362	468	436	−⁠ 81	−⁠ 17.2	−⁠ 74	−⁠ 17.0
Belgium	332	324	331	317	1	0.2	7	2.2
Netherlands	314	298	280	258	33	11.9	40	15.4
Non-Eurosystem countries	550	546	–	–	550	.	546	.
Supranational issuers	250	248	–	–	250	.	248	.
Total	5,702	5,536	5,260	5,007	442	8.4	529	10.6

This sub-item also includes €51 million in participating interests held by the Bundesbank. The Bundesbank’s participating interest in the Bank for International Settlements, Basel, was unchanged at €50 million as at the end of the year; it holds 50,100 shares, with 25 % of their par value being paid-in capital. As in the previous year, the participating interest in the cooperative society S.W.I.F.T., La Hulpe (Belgium), amounted to €1 million.

Claims on euro area counterparties other than credit institutions arising from bilateral repo transactions amounting to €313 million (previous year: €773 million) are also shown in this sub-item. These claims resulted from reverse repos transacted simultaneously with repos, in which securities in the PSPP portfolio as well as PEPP public sector holdings are lent against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. The corresponding liabilities from the repos are shown under liability sub-item 4.2 “Other liabilities”.

Sub-item 11.5 “Accruals and prepaid expenses” contains accruals and prepaid expenses as at 31 December 2025. This chiefly consists of (accrued) interest income due in the new financial year from securities and from the TARGET claim on the ECB which were acquired or transacted in 2025.

Liabilities

1 Banknotes in circulation

The total value of euro banknotes issued by the central banks of the Eurosystem is distributed among these banks on the last business day of each month in accordance with the key for allocating euro banknotes (see “Notes on the annual accounts: general information”). According to the banknote allocation key applied as at 31 December 2025, the Bundesbank has a 24.5 % share of the value of all the euro banknotes in circulation. During the year under review, the total value of banknotes in circulation within the Eurosystem rose from €1,588.3 billion to €1,619.5 billion, or by 2.0 %. Taking into account the allocation key, the Bundesbank had euro banknotes in circulation worth €396,778 million as at the end of the year, compared with €389,136 million a year previously. The value of the euro banknotes actually issued by the Bundesbank increased in 2025 by 3.5 % from €956,327 million to €989,885 million. As this was more than the allocated amount, the difference of €593,107 million (previous year: €567,191 million) is shown in liability sub-item 9.2 “Net liabilities related to the allocation of euro banknotes within the Eurosystem”.

2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro

Sub-item 2.1 “Current accounts” contains the deposits of credit institutions, amounting to €69,713 million (previous year: €76,527 million), which are also used to meet the minimum reserve requirement and to settle payments. The main criterion for including these deposits in this sub-item is that the relevant counterparties appear in the list of institutions which are subject to the Eurosystem’s minimum reserve regulations. The balances held to fulfil the minimum reserve requirement, which have not been remunerated since September 2023, amounted to €45,843 million on an annual average. On a daily average, the current account deposits increased from €46,433 million in 2024 to €47,638 million in 2025.

Sub-item 2.2 “Deposit facility”, amounting to €753,917 million (previous year: €883,694 million), contains overnight deposits remunerated at the deposit facility rate. On a daily average, the deposit facility amounted to €921,557 million, compared with €1,079,217 million in 2024.

3 Other liabilities to euro area credit institutions denominated in euro

This item mainly contains liabilities to euro area credit institutions arising from bilateral repo transactions. In these transactions, securities in the PSPP portfolio as well as PEPP public sector holdings are lent against cash as collateral, or in the case of simultaneous reverse repos, against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. As at the end of the year, securities lending against cash as collateral gave rise to liabilities in the amount of €372 million (previous year: €4,544 million), and securities lending against federal securities resulted in liabilities of €769 million (previous year: €3,722 million); the corresponding claims are reported in asset item 6 “Other claims on euro area credit institutions denominated in euro”. In addition, this item contains liabilities in the amount of €482 million (previous year: €452 million) arising from account balances pledged for deposit protection pursuant to the Deposit Guarantee Act (Einlagensicherungsgesetz) in conjunction with the Regulation on the Financing of the Compensation Scheme (Entschädigungseinrichtungs-Finanzierungsverordnung) as well as account balances of credit institutions in the amount of €1,703 million (previous year: €118 million) which are exempt from minimum reserve requirements due to the imposition of freezing orders.

4 Liabilities to other euro area residents denominated in euro

Sub-item 4.1 “General government deposits” encompasses the balances of the Federal Government, its special funds, the state governments, the European Stability Mechanism (ESM), the European Financial Stability Facility (EFSF) and other public depositors (social security funds and local governments). On 31 December 2025, general government deposits amounted to €10,233 million in total (previous year: €20,348 million). On a daily average, the volume amounted to €11,320 million (previous year: €13,847 million).

Sub-item 4.2 “Other liabilities” amounted to €40,923 million, compared with €13,897 million a year earlier. It mainly comprises deposits of other financial service providers. In addition, as at 31 December 2025, this sub-item includes liabilities to euro area counterparties other than credit institutions arising from bilateral repo transactions centrally cleared via Eurex. In these repo transactions, securities in the PSPP portfolio as well as PEPP public sector holdings are lent against cash as collateral, or in the case of simultaneous reverse repos, against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. As at the end of the year, securities lending against cash as collateral gave rise to liabilities in the amount of €166 million (previous year: no liabilities), and securities lending against Federal securities resulted in liabilities of €313 million (previous year: €773 million); the corresponding claims are reported in asset sub-item 11.3 “Other financial assets”. On a daily average, the sub-item amounted to €13,852 million (previous year: €12,520 million).

5 Liabilities to non-euro area residents denominated in euro

This balance sheet item, amounting to €55,978 million (previous year: €90,748 million), contains the balances of non-euro area central banks, monetary authorities, international organisations and commercial banks held, inter alia, to settle payments. On a daily average, the volume amounted to €45,139 million (previous year: €54,196 million). As at 31 December 2025, deposits of €32,998 million were attributable to non-euro area central banks and monetary authorities, of which €5,192 million was attributable to central banks within the European Union. This item also includes fixed-term deposits of central banks accepted as part of the Bundesbank’s central bank services amounting to €6,599 million (previous year: €5,204 million), which are then invested in the money market (see asset item 6 “Other claims on euro area credit institutions denominated in euro”). Liabilities to non-euro area commercial banks arising from bilateral repo transactions are also recorded in this item. In these repo transactions, securities in the PSPP portfolio as well as PEPP public sector holdings are lent against cash as collateral, or in the case of simultaneous reverse repos, against federal securities on a cash-neutral basis; the transactions have a maximum term of seven days. As at the end of the year, securities lending against cash as collateral gave rise to liabilities in the amount of €4 million (previous year: €2,312 million), and securities lending against federal securities resulted in liabilities of €109 million (previous year: €588 million); the corresponding claims are reported in asset item 4 “Claims on non-euro area residents denominated in euro”.

6 Liabilities to euro area residents denominated in foreign currency

This item contains, in particular, deposits on foreign currency accounts of the Federal Government.

8 Counterpart of special drawing rights allocated by the IMF

The counterpart of the special drawing rights (SDRs) allocated by the IMF free of charge corresponds to the allocations of SDRs to the Federal Republic of Germany from 1970 to 1972, from 1979 to 1981, in 2009 and in 2021, which together totalled SDR 37,587 million (see asset sub-item 2.1 “Receivables from the IMF”).

9 Intra-Eurosystem liabilities

The Bundesbank’s liabilities to the ECB and to the other central banks participating in the Eurosystem are consolidated in this item.

Sub-item 9.1 contains “Liabilities related to TARGET”. As at the end of the year, the Bundesbank had a claim on the ECB arising from cross-border payments made via TARGET, which is shown on the assets side in sub-item 9.3 “Claims related to TARGET” and outlined there.

Sub-item 9.2 “Net liabilities related to the allocation of euro banknotes within the Eurosystem” contains the liabilities arising from the application of the euro banknote allocation key (see liability item 1 “Banknotes in circulation”). As at the end of the year, these liabilities amounted to €593,107 million in total (previous year: €567,191 million). The 8 % share of the total value of euro banknotes in circulation attributable to the ECB (€129,563 million) resulted in a liability of €34,503 million for the Bundesbank (according to its capital share of 26.6301 %). In addition, the allocation of the remaining 92 % of euro banknotes in circulation to the balance sheets of the national central banks resulted in a liability of €558,604 million for the Bundesbank. The reason for the size of this liability was the Bundesbank’s still disproportionately high share of banknote issuance (61.1 %), which is, in particular, attributable to the relatively high level of domestic demand for banknotes from non-banks.

The net liabilities arising from other assets and liabilities within the Eurosystem is shown in sub-item 9.3 “Other liabilities within the Eurosystem (net)”. As at the end of the year, the Bundesbank had a net liability of €1,701 million (previous year: €5,445 million) arising, in particular, from the pooling of monetary income among the national central banks (see profit and loss item 3 “Net result of pooling monetary income”).

10 Items in course of settlement

This item contains the liability items arising from payments still being processed within the Bundesbank.

11 Other liabilities

Sub-item 11.2 “Accruals and income collected in advance” contains the accrued and collected income as at 31 December 2025. This consists mainly of (accrued) interest expenses which are due in the new financial year but were incurred in the previous financial year and which arose in connection with the allocation of banknotes within the Eurosystem.

Sub-item 11.3 “Sundry” comprises the liabilities arising from Deutsche Mark banknotes still in circulation. Deutsche Mark banknotes are no longer legal tender. However, the Bundesbank has publicly undertaken to redeem Deutsche Mark banknotes that are still in circulation for an indefinite period. The Deutsche Mark banknotes still in circulation belong to the series BBk I/Ia and BBk III/IIIa and as at the end of 2025 totalled €2,867 million. The banknote series BBk I/Ia accounted for €1,166 million of this total and the banknote series BBk III/IIIa for €1,700 million. Taking into account the partial derecognitions in 2004 and 2021 and the deposits that have been made in the meantime, the liabilities arising from Deutsche Mark banknotes still in circulation (now only from the banknote series BBk III/IIIa) amounted to €404 million (previous year: €417 million) as at the reporting date. Deposits of Deutsche Mark banknotes in 2025 totalled €18 million, of which €13 million consisted of the BBk III/IIIa series banknotes and €4 million of the BBk I/Ia series banknotes (see profit and loss item 11 “Other expenses”).

12 Provisions

Sub-item 12.1 “Provision for general risk” would show the provision for general risk pursuant to Section 26(2) of the Bundesbank Act.

Sub-item 12.2 “Other provisions” contains the provisions for monetary policy operations pursuant to the Eurosystem’s accounting principles and provisions pursuant to regulations set forth in the Commercial Code.

**Table 9: Provisions**
Provisions	31.12.2025	31.12.2024	Year-on-year change
Provisions	€ million	€ million	€ million	%
Provision for general risk	–	–	–	.
Other provisions
Monetary policy operations	–	–	–	.
Direct pension commitments	8,988	8,461	527	6.2
Indirect pension commitments (supplementary pension funds for public sector employees)	718	733	−⁠ 14	−⁠ 1.9
Healthcare subsidy commitments to civil servants	2,385	2,379	6	0.3
Partial retirement scheme	4	9	−⁠ 5	−⁠ 58.3
Staff restructuring schemes	6	10	−⁠ 4	−⁠ 35.3
Other	99	103	−⁠ 5	−⁠ 4.5
Subtotal	12,200	11,695	505	4.3
Total	12,200	11,695	505	4.3

Provisions for post-employment benefit obligations (direct pension commitments and indirect pension commitments as a result of the Bundesbank’s obligation to act as guarantor for pension payments out of the supplementary pension funds for public sector employees) as well as for healthcare subsidy commitments to civil servants are valued on the basis of actuarial expert opinions prepared using current mortality tables (Heubeck 2018 G mortality tables) according to the entry age normal method (Teilwertverfahren) (for current staff) and the present value method (Barwertverfahren) (for pensioners and ex-civil servants with portable pension entitlements), taking into account discount rates and trends. The discount rate used for post-employment benefit obligations is, in each case, a matched-maturity average market interest rate for the past ten years or, for healthcare subsidy commitments to civil servants, for the past seven years pursuant to the Regulation on the Discounting of Provisions (Rückstellungsabzinsungsverordnung).

**Table 10: Discount rates and trends**
Parameter	31.12.2025	31.12.2024
Parameter	%	%
Discount rate for
post-employment benefit obligations	1.91	1.78
comparable long-term staff obligations (healthcare subsidy commitments to civil servants)	1.93	1.74
short-term staff obligations (partial retirement scheme and staff restructuring schemes)	1.88	1.51
Wage trend	2.75	2.50
Career trend	0.50	0.50
Cost trend for healthcare subsidy commitments to civil servants	3.75	3.75
Pension trend for direct pension commitments	2.75	2.50
Pension trend for supplementary pension funds for public sector employees	1.00	1.00

Pursuant to Section 253(6) of the Commercial Code, the amount saved by applying the ten-year rather than the seven-year period for calculating the average market interest rate for post-employment benefit obligations is subject to a restriction on distribution. In 2024, the ten-year rate (1.78 %) was higher than the seven-year interest rate (1.74 %), resulting in an interest margin of 4 basis points and a saving of €63 million. Owing to the loss for 2024, the reserve including the calculated saving was released in full in 2024. Following a reversal in interest rate developments, rules on the restriction on distribution will become meaningless. However, the difference must still be reported (Section 253(6) of the Commercial Code). In 2025, the ten-year rate is below the seven-year rate, which corresponds to a negative interest margin of 2 basis points (1.91 % compared with 1.93 %) and a negative difference of €33 million (see “Notes on the annual accounts: general information”, liability item 14 “Capital and reserves” and profit and loss item 13 “Allocation to/withdrawal from reserves”).

Provisions for the partial retirement scheme and for payment commitments arising from staff restructuring schemes that had already been carried out as at the reporting date are valued based on actuarial expert opinions prepared using current mortality tables according to the present value method, or according to the entry age normal method in the case of the outstanding settlement amount for the partial retirement scheme, taking into account discount rates and trends. The discount rate is based on a matched-maturity average market interest rate for the past seven years pursuant to the Regulation on the Discounting of Provisions.

The other provisions are created for remaining holiday entitlement, overtime worked and positive balances of flexible working hours and long-term working hours accounts as well as for other uncertain liabilities.

Net income in the amount of €89 million from marking up the provisions (including the effects of the change in the discount rates) is contained in profit and loss sub-item 1.1 “Interest income”. Profit and loss item 7 “Staff costs” shows a net allocation of €643 million, with a total allocated amount of €975 million standing against a total utilisation of €332 million. Other changes in provisioning gave rise, on balance, to relief of €5 million in profit and loss item 11 “Other expenses” and to relief of €6 million in profit and loss item 8 “Administrative expenses”. The reversal of provisions resulted in income of €38 million in profit and loss item 6 “Other income”.

13 Revaluation accounts

This item contains the disclosed hidden reserves from the initial valuation at the time of the changeover to market valuation as at 1 January 1999 (revaluation items “old”) and the unrealised gains arising from market valuation as at 31 December 2025 (revaluation items “new”).

**Table 11: Revaluation accounts**
Item	31.12.2025	31.12.2024	Year-on-year change
Item	€ million	€ million	€ million	%
Gold	387,295	262,657	124,638	47.5
of which: Revaluation items “old”	18,617	18,624	−⁠ 7	−⁠ 0.0
Foreign currency
US dollar	397	4,064	−⁠ 3,667	−⁠ 90.2
SDR	–	433	−⁠ 433	−⁠ 100.0
Yen	–	–	–	.
Australian dollar	–	–	–	.
Canadian dollar	–	52	−⁠ 52	−⁠ 100.0
Chinese yuan (renminbi)	–	14	−⁠ 14	−⁠ 100.0
Pound sterling	–	10	−⁠ 10	−⁠ 100.0
Subtotal	397	4,573	−⁠ 4,176	−⁠ 91.3
Securities in foreign currency	139	55	84	151.6
Total	387,831	267,285	120,546	45.1

Revaluation items “old”

A revaluation item “old” now remains only for gold. This item represents the difference between the market value of gold as at 1 January 1999 and the lower book value of gold prior to that date. On the balance sheet as at 31 December 1998, the book value for gold was 1 ozf = DEM 143.8065 (€73.5271), while the market value as at 1 January 1999 was 1 ozf = €246.368. Although the valuation gains arising from the initial valuation of the gold holdings are not eligible for distribution, they will be released under certain circumstances. Besides being released in the case of devaluations, a proportionate release will also take place in the event of net reductions if the end-of-year gold holdings are below their lowest end-of-year level since 1999.

The reduction of 1,260 kg, or 0.04 million ozf, in the gold holdings resulted in the release of €7 million in the year under review. This amount is included in profit and loss sub-item 2.1 “Realised gains/losses arising from financial operations”.

Revaluation items “new”

The revaluation items “new” show, for the gold holdings, the net positions in each foreign currency and the securities portfolios in each category of security (securities identification number), the positive difference in each case between the market value on 31 December 2025 and their value at average amortised cost since 1 January 1999.

As regards gold, this acquisition cost is 1 ozf = €246.369. As at the end of the year, the market value of the gold position exceeded its acquisition value, leading to a revaluation item of €368,678 million (previous year: €244,032 million). In the case of the net foreign exchange position in US dollars, the market value as at 31 December 2025 was also above its acquisition value (€1 = US$1.1925), resulting in a revaluation item. The market values of net foreign exchange positions in SDRs, Japanese yen, Canadian dollars, Chinese yuan (renminbi), British pound sterling and Australian dollars were below their acquisition values at the end of the year (€1 = SDR 1.2056, €1= ¥162.30, €1 = C$1.5444, €1 = 7.9676 yuan, €1 = £0.83597 and €1 = A$1.6804), resulting in valuation losses (see profit and loss sub-item 2.2 “Write-downs on financial assets and positions”).

The valuation gains on foreign currency-denominated securities shown on the balance sheet result predominantly from US Treasury notes (€101 million). However, for some securities, the relevant acquisition values were higher than their corresponding market values on the reporting date, resulting in overall valuation losses of €37 million (see profit and loss sub-item 2.2 “Write-downs on financial assets and positions”). In principle, securities denominated in euro are carried at amortised cost. Market to market would result in valuation losses of €88,824 million (previous year: €87,999 million), mostly from government bonds held for monetary policy purposes (PEPP public sector securities and PSPP) and valuation gains of €3,655 million (previous year: €1,041 million).

14 Capital and reserves

In accordance with Section 2 of the Bundesbank Act, the Bank’s capital, amounting to €2.5 billion, is owned by the Federal Republic of Germany. The statutory reserves pursuant to Section 27(1) of the Bundesbank Act and the reserves owing to the restriction on distribution pursuant to Section 253(6) of the Commercial Code (see “Notes on the annual accounts: general information” and profit and loss item 13 “Allocation to/withdrawal from reserves”) were used in the previous year to offset pro rata the loss for the year and released in full.

**Table 12: Net equity**
Item		31.12.2025	31.12.2024	Year-on-year change
Item		€ million	€ million	€ million
Liabilities 14.1	Capital	2,500	2,500	–
Liabilities 14.2	Reserves
	Statutory reserves pursuant to Section 27(1) of the Bundesbank Act	–	–	–
	Reserves pursuant to Section 253(6) of the Commercial Code	–	–	–
Liabilities 12.1	Provision for general risk	–	–	–
Liabilities 13	Revaluation accounts	387,831	267,285	120,546
Liabilities 15	Accumulated loss	−⁠ 27,787	−⁠ 19,153	−⁠ 8,633
Total		362,544	250,632	111,913

The Bundesbank's net equity according to the ECB’s definition amounted to €362.5 billion and comprised capital (liability sub-item 14.1), the revaluation accounts (liability item 13) and the accumulated loss (liability item 15) in the annual accounts for 2025. Compared with the previous year, this represents a net increase of €111.9 billion as at the end of 2025, despite the accumulated loss.

15 Accumulated loss

The profit and loss account for 2025 closed with a loss for the year of €8,633 million (previous year: loss of €19,814 million). After the release of reserves in the amount of €661 million in the previous year, a remaining accumulated loss of €19,153 million was carried forward to 2025 (see profit and loss item 14 “Accumulated losses carried forward”). Combined with the accumulated losses carried forward from 2024, an accumulated loss of €27,787 million will be brought forward to 2026.

Notes on the profit and loss account

1 Net interest income

This item shows interest income, net of interest expense. Net interest income was again negative, at −⁠ €4,167 million, but has improved on the prior-year figure of −⁠ €13,059 million, going up by €8,892 million. Net interest income in foreign currency was down slightly by €264 million to €1,671 million, and net interest income in euro recovered, going up by €9,156 million to −⁠ €5,838 million. In past years, the monetary policy asset purchases have given rise to longer-term fixed interest positions generating a low level of remuneration. The counterparts to these on the liabilities side of the balance sheet (after deducting non-interest-bearing banknotes in circulation and non-interest-bearing minimum reserves) are short-term interest-bearing deposits of banks. Due to the mismatch in maturities, these interest-bearing balance sheet items have resulted in an open euro interest rate position. In the reporting year, securities held for monetary policy purposes stood at an annual average of €839 billion, banknotes in circulation came to €389 billion, minimum reserves came to €48 billion, and the open euro interest rate position resulting from the holdings of monetary policy securities (the net residual from these figures) amounted to €403 billion. Monetary policy securities were remunerated at an average rate of 0.58 % in the reporting year (previous year: 0.54 %), while credit institutions’ monetary policy deposits gave rise to an average interest expense of 2.31 % (previous year: 3.81 %). The negative interest margin of 1.73 % (previous year: 3.28 %) caused the interest rate risk from the open interest rate position to materialise. The net interest expense resulting from the open interest rate position decreased by around 60 %, or €10.3 billion, to €7.0 billion (previous year: €17.3 billion). This was because maturing securities held for monetary policy purposes resulted in a declining open interest rate position, but in particular because of the lower interest expense for credit institutions’ deposits. All the euro holdings not included in this open interest rate position generated overall net interest income of €1.1 billion, compared with €2.3 billion in the previous year.

**Table 13: Net interest income**
Item	2025	2024	Year-on-year change
Item	€ million	€ million	€ million	%
Interest income in foreign currency
IMF	1,647	2,220	−⁠ 573	−⁠ 25.8
Reverse repo transactions	211	216	−⁠ 5	−⁠ 2.1
Securities	1,104	1,198	−⁠ 94	−⁠ 7.8
Other	45	97	−⁠ 52	−⁠ 53.6
Subtotal	3,007	3,731	−⁠ 724	−⁠ 19.4
Interest income in euro
Refinancing operations	103	1,130	−⁠ 1,026	−⁠ 90.8
Reverse repo transactions	21	125	−⁠ 104	−⁠ 83.4
Monetary policy portfolios	4,891	5,126	−⁠ 235	−⁠ 4.6
of which: inflation-linked federal bonds	277	209	68	32.7
Claims arising from central bank services	166	322	−⁠ 156	−⁠ 48.5
Claims equivalent to the transfer of foreign reserves to the ECB	210	386	−⁠ 175	−⁠ 45.5
TARGET claim on the ECB	24,496	45,056	−⁠ 20,561	−⁠ 45.6
Own funds portfolio (financial assets)	38	34	4	12.4
Marking up of staff provisions	89	–	89	.
Other	49	50	−⁠ 1	−⁠ 1.7
Subtotal	30,063	52,228	−⁠ 22,165	−⁠ 42.4
Total interest income	33,070	55,959	−⁠ 22,888	−⁠ 40.9
Interest expense in foreign currency
IMF	1,330	1,779	−⁠ 448	−⁠ 25.2
Repo transactions	6	18	−⁠ 12	−⁠ 65.1
Other	0	0	0	54.4
Subtotal	1,337	1,797	−⁠ 460	−⁠ 25.6
Interest expense in euro
Deposits of credit institutions	21,306	41,147	−⁠ 19,842	−⁠ 48.2
Euro balances of domestic and foreign depositors	1,374	2,745	−⁠ 1,371	−⁠ 50.0
Liabilities arising from the allocation of euro banknotes	13,158	22,934	−⁠ 9,777	−⁠ 42.6
Marking up of staff provisions	–	147	−⁠ 147	.
Repo transactions	50	228	−⁠ 178	−⁠ 78.0
Other	14	21	−⁠ 6	−⁠ 30.7
Subtotal	35,901	67,221	−⁠ 31,320	−⁠ 46,6
Total interest expense	37,238	69,018	−⁠ 31,780	−⁠ 46.0
Net interest income	−⁠ 4,167	−⁠ 13,059	8,892	68.1

1.1 Interest income

Interest income in foreign currency fell from €3,731 million in the previous year to €3,007 million in 2025. Interest income in euro also declined on the year by €22,165 million to €30,063 million. Interest income from the remuneration of the TARGET claim on the ECB decreased by €20,561 million to €24,496 million, in particular due to the key interest rate cuts and the application of the deposit facility rate since January 2025 (previously: main refinancing rate; see “Notes on the annual accounts: general information”). In addition, interest income from refinancing operations fell from €1,130 million in the previous year to €103 million due to the third series of targeted longer-term refinancing operations (TLTRO III) maturing in 2024.

**Table 14: Interest income from monetary policy portfolios**
Portfolio	2025	2024	Year-on-year change
Portfolio	€ million	€ million	€ million	%
APP
CBPP3	486	520	−⁠ 34	−⁠ 6.5
PSPP	2,058	2,082	−⁠ 24	−⁠ 1.2
CSPP	652	749	−⁠ 97	−⁠ 12.9
Subtotal	3,196	3,351	−⁠ 155	−⁠ 4.6
PEPP
PEPP covered bonds	4	3	1	20.1
PEPP public sector securities	1,571	1,655	−⁠ 84	−⁠ 5.1
PEPP corporate sector securities	119	116	3	2.7
Subtotal	1,694	1,775	−⁠ 80	−⁠ 4.5
Total	4,891	5,126	−⁠ 235	−⁠ 4.6

The monetary policy portfolios generated interest income of €4,891 million, compared with €5,126 million in the previous year. Income from the APP portfolios (CBPP3, PSPP and CSPP portfolios) declined by €155 million to €3,196 million due to maturing securities. Interest income from the PEPP portfolios likewise decreased due to maturing securities, dropping from €1,775 million in the previous year to €1,694 million.

Income from the Bundesbank’s own funds portfolio rose by €4 million, particularly on account of increased holdings. The reverse repos transacted simultaneously with the bilateral repo transactions (see asset item 4 “Claims on non-euro area residents denominated in euro”, asset item 6 “Other claims on euro area credit institutions denominated in euro” and asset sub-item 11.3 “Other financial assets”) resulted in interest income of €21 million (previous year: €125 million).

The marking up of staff provisions (see liability sub-item 12.2 “Other provisions”) gave rise to interest income of €89 million (previous year: interest expense of €147 million) owing, in particular, to the increase in the discount rate for post-employment benefit obligations.

1.2 Interest expense

There was a year-on-year decrease of €31,780 million to €37,238 million in interest expense. Owing to the key interest rate cuts starting in June 2024 and because holdings declined by an annual average of 14.6 %, the remunerated deposits of credit institutions generated a lower interest expense of €21,306 million in the reporting year, compared with €41,147 million in the previous year. Since January 2025, intra-Eurosystem balances arising from the allocation of euro banknotes have been remunerated at the deposit facility rate (previously: main refinancing rate; see “Notes on the annual accounts: general information”). As a result, and because of the key interest rate cuts, this remuneration decreased from €22,934 million in the previous year to €13,158 million. Expenses arising from the euro balances of domestic and foreign depositors declined from €2,745 million in the previous year to €1,374 million owing to a decrease in holdings on average over the year (11.2 %) and lower average remuneration. Repo transactions (see liability item 3 “Other liabilities to euro area credit institutions denominated in euro”, liability sub-item 4.2 “Other liabilities” and liability item 5 “Liabilities to non-euro area residents denominated in euro”) resulted in an interest expense of €50 million (previous year: €228 million).

2 Net result of financial operations and write-downs

This item contains realised gains and losses from financial operations (profit and loss sub-item 2.1) and write-downs of valuation losses (profit and loss sub-item 2.2). The net result of financial operations and write-downs decreased by €1,086 million on the year and is now negative at −⁠ €226 million.

2.1 Realised gains/losses arising from financial operations

Realised gains and losses arise when the selling price is above or below the average acquisition cost. Exchange rate gains fell by €867 million to €180 million, mainly from US dollar transactions. Combined with the increasing gold price gains owing to the reduction in gold holdings (see asset item 1 “Gold and gold receivables” and liability item 13 “Revaluation accounts”) and the increasing securities price gains from sales of securities (chiefly US Treasury notes), total realised gains amounted to €530 million.

**Table 15: Realised gains/losses arising from financial operations**
Item	2025	2024	Year-on-year change
Item	€ million	€ million	€ million	%
Gold price gains	112	66	46	70.0
Exchange rate gains (net)	180	1,047	−⁠ 867	−⁠ 82.8
Securities price gains (net)	239	72	167	233.8
Total	530	1,184	−⁠ 654	−⁠ 55.2

2.2 Write-downs on financial assets and positions

Write-downs are recognised after end-of-year revaluation if the market value is below the average acquisition cost. Based on market values, total write-downs of €756 million were reported. In the case of foreign currency, unrealised exchange rate losses were €633 million higher than in the previous year, primarily in SDRs and yen.

**Table 16: Write-downs on financial assets and positions**
Item	2025	2024	Year-on-year change
Item	€ million	€ million	€ million	%
Unrealised exchange rate losses	719	87	633	730,9
Unrealised securities price losses	37	237	−⁠ 200	−⁠ 84,4
Total	756	324	433	133,6

3 Net result of pooling monetary income

An expense of €1,669 million was reported for this item in 2025 (previous year: €5,434 million). In the previous year, this item comprised income of €11 million arising from risk provisioning for Eurosystem monetary policy operations and an expense of €5,445 million from the pooling of monetary income. The year-on-year decrease in the redistribution expense is attributable mainly to the key interest rate cuts made since June 2024 and the change in the reference interest rate for monetary income since January 2025 from the main refinancing rate to the deposit facility rate (see “Notes on the annual accounts: general information”).

Monetary income of the Eurosystem national central banks is pooled in accordance with a decision taken by the Governing Council of the ECB.[5] Since 2003, the amount of monetary income allocated to each national central bank has been measured on the basis of the actual income that derives from the earmarked assets that each holds as a counterpart to its liability base. All interest paid on the liability base decreases the amount of monetary income to be transferred by the national central bank concerned.

The liability base contains, in particular, the following items: liability item 1 “Banknotes in circulation”, liability item 2 “Liabilities to euro area credit institutions related to monetary policy operations denominated in euro”, liability sub-item 9.1 “Liabilities related to TARGET”, and liability sub-item 9.2 “Net liabilities related to the allocation of euro banknotes within the Eurosystem”. In 2025 the amount of the interest expense arising from these items resulted in a deduction amount of €34.5 billion for the Bundesbank.

A national central bank’s earmarked assets consist mainly of the following items: asset item 5 “Lending to euro area credit institutions related to monetary policy operations denominated in euro”, asset sub-item 7.1 “Securities held for monetary policy purposes”, asset sub-item 9.2 “Claims equivalent to the transfer of foreign reserves to the ECB”, asset sub-item 9.3 “Claims related to TARGET”, asset sub-item 9.4 “Net claims related to the allocation of euro banknotes within the Eurosystem”, and a limited amount of the national central banks’ gold holdings corresponding to their share in the fully paid-up capital of the ECB. As a rule, monetary income is determined by measuring actual income. As an exception to the above, it is assumed that no income is generated from the gold and that the government bonds purchased under the PSPP and PEPP (including regional government bonds and bonds issued by eligible agencies located in the euro area) generate income at the applicable reference rate for monetary income, as the ECB Governing Council has ruled out the possibility of pooling the risk and returns arising from these instruments among the national central banks. The Bundesbank’s arithmetical interest income was €42.5 billion in total for 2025.

In addition, the difference between the value of a national central bank’s earmarked assets and that of its liability base is remunerated on a daily basis at the applicable reference rate for monetary income. As the value of the Bundesbank’s earmarked assets in the reporting year was, on average, lower than that of its liability base, this resulted in income of €237 million. In the previous year, the value of the Bundesbank’s earmarked assets exceeded that of its liability base, giving rise to an additional deduction item.

At the end of each financial year, the total monetary income transferred by all national central banks is allocated to the national central banks in proportion to their respective shares in the fully paid-up capital of the ECB.

The monetary income of the national central banks is initially reflected in profit and loss item 1 “Net interest income”, while any unequal allocation among national central banks is balanced out via profit and loss item 3 “Net result of pooling monetary income”. Redistribution effects among national central banks can arise under two conditions in practice. First, earmarked assets or liabilities as part of the liability base must have an interest rate that is different from the reference rate for monetary income (such as, for instance, the remuneration of monetary policy portfolios, provided the Governing Council of the ECB has not ruled out the possibility of pooling the risk and returns arising from these securities among the national central banks). Second, the pro rata share of these earmarked assets or liabilities on the balance sheet of the respective national central bank must be higher or lower than its share in the ECB’s capital.

The PSPP/PEPP holdings of bonds from supranational issuers purchased by other national central banks (annual average of €368.4 billion), of which the Bundesbank has not purchased any holdings itself, generated only low interest income (average for the year of around 0.62 %). The lower income for the purchasing national central banks as a result of the difference from the reference rate for monetary income (the negative interest margin comes to around −⁠ 160 basis points on average for the year) is balanced out among the national central banks via the common pool of monetary income. Based on its capital share of 26.6 %, the expense for the Bundesbank came to around €1.6 billion. Compared with the previous year, the redistribution expense from these securities fell significantly as a result of the smaller negative interest margin.

The pooling of monetary income resulted in a net expense of €1,669 million for the Bundesbank (previous year: €5,445 million). This balance represents the difference between the €8,242 million (previous year: €17,421 million) in monetary income paid by the Bundesbank into the common pool and the Bundesbank’s claim of €6,573 million (previous year: €11,976 million) – corresponding to the Bundesbank’s share of the ECB’s paid-up capital – on the common pool.

4 Net income from fees and commissions

Net income from fees and commissions came to €57 million, compared with €60 million in the previous year.

**Table 17: Net income from fees and commissions**
Item	2025	2024	Year-on-year change
Item	€ million	€ million	€ million	%
Cashless payments	31	20	11	56.1
Cash payments	5	5	−⁠ 0	−⁠ 2.0
Securities business and security deposit business	3	15	−⁠ 13	−⁠ 83.3
Other	18	20	−⁠ 1	−⁠ 6.4
Total	57	60	−⁠ 3	−⁠ 5.0

5 Income from participating interests

This item contains the Bundesbank’s income from its participating interests in the ECB, the BIS and S.W.I.F.T. The income of €22 million (previous year: €23 million) came from BIS dividends, as in the previous year.

6 Other income

Other income amounted to €164 million, compared with €187 million in the previous year. An amount of €69 million (previous year: €90 million) was attributable to the contributions of the Eurosystem national central banks to the costs of developing and running Eurosystem services, €38 million (previous year: €38 million) to the reversal of provisions (see liability sub-item 12.2 “Other provisions”), and €24 million (previous year: €23 million) to rental income.

7 Staff costs

This item contains the salaries and wages paid out under the pay regulations for salaried staff and civil servants, social security contributions, and expenditure on post-employment benefits including transfers to staff provisions (with the exception of the interest share; see profit and loss sub-item 1.1 “Interest income”). Staff costs rose from €1,477 million to €1,798 million year on year. This was due, in particular, to higher transfers to staff provisions owing to the general pay rise for salaried staff and civil servants applicable from April 2025. Excluding transfers to staff provisions, staff costs rose by 4.9 %. This was likewise attributable to the general pay rise for salaried staff and civil servants.

**Table 18: Staff costs**
Item	2025	2024	Year-on-year change
Item	€ million	€ million	€ million	%
Salaries and wages	769	762	7	1.0
Social security contributions	106	99	7	7.2
Expenditure on post-employment benefits	923	616	307	49.9
Total	1,798	1,477	322	21.8

The remuneration received by each member of the Executive Board is published in the Annual Report in accordance with item 9 of the “Code of Conduct for the members of the Executive Board of the Deutsche Bundesbank”. For 2025, the President of the Bundesbank received a pensionable salary of €440,434.68, special non-pensionable remuneration of €76,693.78 and a standard expenses allowance of €5,112.96, amounting to a total of €522,241.42. The First Deputy Governor received a pensionable salary of €346,587.72, special non-pensionable remuneration of €61,355.03 and a standard expenses allowance of €3,067.80, amounting to a total of €411,010.55 for 2025. The four other members of the Executive Board each received a pensionable salary of €264,260.88, special non-pensionable remuneration of €46,016.27 and, in the case of one member of the Executive Board, a standard expenses allowance of €2,556.48, amounting to a total of €310,277.15 or €312,833.63, respectively, for the year 2025.

Total remuneration payments to serving and former members of the Executive Board, former members of the Bundesbank’s Directorate and of the Executive Boards of the Land Central Banks, including their surviving dependants, amounted to €11,135,847.87 in 2025.

8 Administrative expenses

Administrative expenses increased from €747 million in the previous year to €802 million. This item shows not only general operating expenditure but also, in particular, expenditure of €351 million on computer hardware and software (previous year: €329 million) and of €160 million on office buildings (previous year: €159 million) as well as expenditure of €83 million on Eurosystem services (previous year: €62 million).

9 Depreciation of tangible and intangible fixed assets

Depreciation of land and buildings, of furniture and equipment including computer equipment and of software amounted to €103 million, compared with €117 million in the previous year (see asset sub-item 11.2 “Tangible and intangible fixed assets”).

10 Banknote production services

The expense for banknote production services amounted to €76 million in the reporting year (previous year: €77 million).

11 Other expenses

Other expenses amounted to €36 million (previous year: €33 million) and contained, in particular, expenditure on residential buildings amounting to €28 million and expenditure on the encashment of the BBk I/Ia series Deutsche Mark banknotes, which are no longer shown on the balance sheet, in the amount of €4 million (see liability sub-item 11.3 “Sundry”).

In 2025, the Bundesbank’s donations totalled €248,540.17, including €85,790.17 for research projects, €17,500.00 for other specific projects, and €145,250.00 for prize money.

13 Allocation to/withdrawal from reserves

In the annual accounts for 2024, the statutory reserves pursuant to Section 27(1) of the Bundesbank Act and the reserves owing to the restriction on distribution pursuant to Section 253(6) of the Commercial Code were released in full to reduce the loss for the year.

14 Accumulated losses carried forward

The Bundesbank shows an accumulated loss carried forward of €19,153 million from the annual accounts 2024. Combined with the loss for the year of €8,633 million in 2025, an accumulated loss of €27,787 million will be carried forward to 2026 (see liability item 15 “Accumulated loss”).

Unqualified independent auditor’s report for statutory audits of annual financial statements

To the Deutsche Bundesbank, Frankfurt am Main

Auditor’s opinion on the annual financial statements

We have audited the annual financial statements of the Deutsche Bundesbank, Frankfurt am Main, consisting of the balance sheet as at 31 December 2025 and the profit and loss account for the business year from 1 January 2025 to 31 December 2025 as well as the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account).

In our opinion, based on the findings of our audit, the said annual financial statements comply, in all material respects, with the legal requirements and the principles for the accounting of the Deutsche Bundesbank approved by the Executive Board pursuant to Section 26(2) of the Bundesbank Act (Bundesbankgesetz) and give a true and fair view of the net assets and financial position of the Deutsche Bundesbank as at 31 December 2025 and the results of operations for the business year from 1 January 2025 to 31 December 2025 in accordance with German principles of proper accounting and with regard to the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account).

Pursuant to Section 322(3) sentence 1 of the German Commercial Code (Handelsgesetzbuch – HGB) in conjunction with Section 26(2) sentence 3 of the Bundesbank Act, we declare that our audit has not led to any reservations with regard to the regularity of the annual financial statements.

Basis for the auditor’s opinion on the annual financial statements

We conducted our audit of the annual financial statements in accordance with Section 317 HGB and German generally accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer (IDW)). Our responsibilities pursuant to these provisions and principles are further described in the “Auditor’s responsibilities for the audit of the annual financial statements” section of our report. We are independent of the Deutsche Bundesbank in accordance with German commercial and professional laws and regulations and have fulfilled our other German ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the annual financial statements.

Other information

The Executive Board is responsible for other information. Other information comprises all information in the Annual Report with the exception of the audited annual financial statements, the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account) as well as the respective auditor’s report.

Our opinion on the annual financial statements with regard to the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account) does not cover this other information, and we therefore do not express an auditor’s opinion or draw any other form of audit conclusion regarding this other information.

In connection with our audit, we have the responsibility to read the other information and to evaluate whether

there are material inconsistencies between the other information and the annual financial statements or the findings of our audit, or
the other information otherwise appears to contain a material misstatement.

If we conclude, on the basis of our audit, that the other information contains a material misstatement, we are obliged to draw attention to this matter. We have nothing to report in this regard.

Responsibilities of the Executive Board for the annual financial statements

The Executive Board is responsible for the preparation of the annual financial statements as well as for the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account); which are in accordance with the legal requirements and the principles for the accounting of the Deutsche Bundesbank approved by the Executive Board pursuant to Section 26(2) of the Bundesbank Act and for ensuring that the annual financial statements give a true and fair view of the net assets, financial position and results of operations of the Deutsche Bundesbank in accordance with German principles of proper accounting and with regard to the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account). Moreover, the Executive Board is responsible for such internal control as it determines necessary in accordance with German principles of proper accounting to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud (i.e. the manipulation of accounting records and misappropriation of assets) or error.

In preparing the annual financial statements, the Executive Board is responsible for assessing the Deutsche Bundesbank’s ability to continue as a going concern. It is also responsible for disclosing, as applicable, matters related to going concern. It is further responsible for disclosing, as applicable, matters related to going concern and using the going-concern basis of accounting, provided there are no factual or legal impediments thereto.

The Executive Board is responsible for overseeing the Deutsche Bundesbank’s financial reporting process for the preparation of the annual financial statements.

Auditor’s responsibilities for the audit of the annual financial statements

Our objectives are to obtain reasonable assurance about whether the annual financial statements with regard to the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account) as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion on the annual financial statements.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 HGB and generally accepted German standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements.

We exercise professional judgement and maintain professional scepticism throughout the audit. We also

identify and assess the risks of material misstatement in the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the overriding of internal control.
obtain an understanding of internal control relevant to the audit of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Deutsche Bundesbank’s internal control.
evaluate the appropriateness of the accounting policies used by the Executive Board as well as the reasonableness of accounting estimates and related disclosures made by the Executive Board.
conclude on the appropriateness of the going-concern basis of accounting used by the Executive Board and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Deutsche Bundesbank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion in each case. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Deutsche Bundesbank to cease to continue as a going concern.
evaluate the overall presentation, structure and content of the annual financial statements including the notes and whether the annual financial statements represent the underlying transactions and events in a manner that gives a true and fair view of the net assets, financial position and results of operations of the Deutsche Bundesbank in accordance with German principles of proper accounting and with regard to the notes on the annual financial statements (general information, notes on the individual balance sheet items as well as notes on the profit and loss account) from the Deutsche Bundesbank’s Annual Report 2025.

We communicate with the Executive Board regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Frankfurt am Main, 24 February 2026

Baker Tilly GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
(Düsseldorf)

Professor Thomas Edenhofer Ralph Hüsemann
Wirtschaftsprüfer Wirtschaftsprüfer

As last published in Deutsche Bundesbank Notice No 10003/2024.
Decision of the European Central Bank of 13 December 2010 on the issue of euro banknotes (ECB/2010/29), as last amended by the Decision of the European Central Bank of 4 December 2025 (ECB/2025/39).
Decision of the European Central Bank of 3 November 2016 on the allocation of monetary income of the national central banks of Member States whose currency is the euro (ECB/2016/36), as last amended by the Decision of the European Central Bank of 14 November 2024 (ECB/2024/33).
Decision of the European Central Bank of 15 December 2014 on the interim distribution of the income of the European Central Bank (recast) (ECB/2014/57), as last amended by the Decision of the European Central Bank of 12 November 2020 (ECB/2020/56).
Decision of the European Central Bank of 3 November 2016 on the allocation of monetary income of the national central banks of Member States whose currency is the euro (ECB/2016/36), as last amended by the Decision of the European Central Bank of 14 November 2024 (ECB/2024/33).

Annual Report 2025