MNI BRIEF: BOI Lost EUR7.3Bln In '24, Profit After Risk Fund

The Bank of Italy recorded am EUR 843 million profit in 2024 after a drawdown of EUR 5.8 billion from the general risk fund, the second year in a row in which the BOI have used the fund to cover losses, the bank published on Monday noting that it will hopefully return to gross profits in 2025.

The high levels of interest rates still in 2024 - with the ECB only starting cutting in June - along with the acceleration of quantitative tightening and the end of TLTRO pushed the BOI to gross loses. The BOI's gold reserves increased in value.

Between 2023 and 2024 the BOI has used EUR 11.4 billion from its general risks funds but risks management “remains adequate,” Panetta said, noting that the bank still has more than EUR 23 billion in its risks fund.