(ABM FN) The National Bank of Belgium has suffered a loss of no less than 3.4 billion euros in 2023. That left NBB Wednesday evening.
This makes the loss much higher than the loss of 580 million euros in 2022.
The loss last year is mainly the result of the sharp decline in net interest income. They fell by 4.6 billion euros.
But the biggest loss should have been suffered by now, according to the National Bank. “In the scenario that reflects the interest rate environment and market expectations about future interest rate movements on the balance sheet date, this would lead to a cumulative loss of 6.1 billion euros over a five-year time horizon if the balance sheet composition remains unchanged,” the bank explained.
Interest rate cuts can reduce the loss. NBB also expects to return to profitability in 5 years.
The NBB will despite the mega loss, a dividend of 1.50 euros per share on May 21, 2024.
Source: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
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