Losses at the Central Bank last year decreased by 87% to €104.6m, according to the 2025 Central Bank’s annual report which shows that the losses of €104.6m follow losses of €795m in 2024 and €132m in 2023.
The losses of the past three years followed an era of super profits at the Central Bank where it had generated more than €23.5 billion of profits in the 15 years to 2022 in the wake of the financial crisis.
A report attached to the financial statements states that the 2025 loss “is a consequence of the Central Bank using its balance sheet as a tool for monetary policy and the crystallisation of the Interest Rate Mismatch (IRM) risk, whereby interest paid on the Central Bank’s liabilities rose at an accelerated pace compared to the interest earned on its assets”.
The report states that the use of the Central Bank’s balance sheet as a tool for monetary policy “reflects the Central Bank’s primary mandate of safeguarding price stability”.
It also states that going forward, the Central Bank’s balance sheet structure and interest rate environment is forecast to continue to reduce its income over a number of years and to potentially result in further losses in the future.
“While these losses are expected to be covered by the Central Bank’s financial buffers, their full extent is uncertain and will depend on many factors, in particular the monetary policy set by the ECB’s Governing Council to ensure price stability,” the report says.
The report states that the IRM risk “was anticipated and projected, and the Central Bank took a number of actions in recent years to mitigate the impact”.
As part of its assessment of the IRM risk, a provision of €3 billion was built up to cover anticipated losses, it adds.
The report states that in 2025 the provision has decreased again to €1.96 billion due to the utilisation of €104.6m to cover financial losses driven by the IRM on the balance sheet.
The annual report shows that with the rising price of gold, the value of the Central Bank’s gold increased from €970.76m to €1.4 billion last year.
The report shows that Central Bank Governor Gabriel Makhlouf’s salary last year increased from €331,369 to €342,239 arising from salary increases across the public sector.
Mr Makhlouf is also in receipt of a UK public service pension.
The annual report shows that six staff received pay in excess of €240,000 last year with a further 12 receiving pay between €210,000 and €240,000.
Those to receive in excess of €240,000 include Deputy Governors Vasileios Madouros and Mary-Elizabeth McMunn, who each received €297,599 in salary.
Staff expenses last year increased from €248.39m to €260.9m that includes salaries and allowances rising from €200m to €211.36m.
Numbers earning over €100,000 at the Central Bank last year increased from 729 to 825 made up of 449 earning between €100,000 and €120,000; 210 earning between €120,000 and €150,000; 148 earning between €150,000 and €210,000 and 18 earning over €210,000.
The accounts show that there were five payments in 2025 totalling €474,000 on termination of employment.
Key management personnel made up of Heads of Division and executive Commission members last year shared €14.56m in pay.
Numbers employed decreased from 2,263 to 2,225 at the end of last year. Staff hospitality last year decreased from €279,000 to €221,000.
The Central Bank’s balance sheet shows that at the end of 2025 its total assets had a value of €163.86 billion.
The loss last year includes an impairment charge of €16.3m on the Central Bank’s Mayor Street building.
The impairment draws the attention of the Comptroller and Auditor General Seamus McCarthy, who states that construction and fitting out of the office at Mayor Street was completed in 2023.
Mr McCarthy states that due to the deterioration in the commercial property market post-Covid an impairment of €156.9m was recorded in 2023.
Mr McCarthy states that the additional 2025 impairment charge of €16.3m “reflects the further reduction in the market value of the building due to the assessed oversupply of office space in Dublin and the estimated €3.9m per annum rental foregone due to 43% of the building remaining vacant”.
Reporting by Gordon Deegan
