ECB Shrinks Balance Sheet by €37.3 Billion in 2025

The European Central Bank's balance sheet contracted by €37.3 billion to €603.3 billion in 2025, led by the winding down of securities purchased under its asset purchase and pandemic emergency purchase programs. Monetary policy portfolios fell by €51.5 billion to €325.3 billion, with the APP portfolio dropping €33.7 billion to €186.5 billion and the PEPP portfolio declining €17.8 billion to €138.6 billion. Meanwhile, the ECB's total foreign reserve assets rose €13.6 billion to €116.8 billion, with gold holdings surging €18.9 billion to €59.8 billion due to rising gold prices. The ECB recorded a loss in 2025, though significantly smaller than 2024's loss, mainly due to reduced interest expenses. The loss will remain on the balance sheet to be offset against future profits. Total financial risks stood at €15.2 billion at year end.