Minister of Finance was “concerned” about the Bank of Portugal, but the losses are widespread across central banks across Europe

Neither profit nor loss. Zero euros: this is the result of the French central bank for 2023. The amount of tax to be paid to the State on account of this result will be zero, and the amount to be allocated to the State by way of dividend will also be zero. The French monetary authority’s zero result was achieved despite the institution’s operation having generated operational losses: it did not make a loss because it used a cushion it had previously created.

The French central bank is not alone. The case is practically the same as what is expected to happen with Banco de Portugal, and which should even be confirmed on May 16th: zero result with the coverage of operational losses due to the use of the provision for general risks. The news about these negative operational results of Banco de Portugal in 2023, reported by Jornal de Negócios on the day of the debate on the Government Program, led the Minister of Finance, Joaquim Miranda Sarmento, to appear surprised and concerned. But that is exactly what also happened in the accounts of the European Central Bank (ECB) itself.

A year ago there were already losses in central bank results and warnings that this would happen this year. Across the entire euro zone, the accounts of the central banks that make up the ECB’s universe show much more pressured results, with some banks even plunging into losses, like Austria’s, and others anticipating entering the “red” it could happen in the coming years, like in Germany.