© Reuters. European Central Bank headquarter in Frankfurt
FRANKFURT (Reuters) – The European Central Bank will pay the currency bloc’s 19 central banks 1.6 billion euros in dividends this year, down from the 2.4 billion euros it paid a year ago as its profit declined, it said in a statement on Thursday.
The ECB’s net profit for 2020 fell to 1.64 billion euros from 2.37 billion a year earlier, mostly on a drop in net interest income to 2.02 billion euro from 2.69 billion euros.
With the 19 central banks holding the vast majority of the bonds bought under the ECB’s stimulus schemes, most of the profit is also generated on their balance sheet, so the ECB’s dividend is merely a top off.
National central banks then typically pay most of their profits into state coffers.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.