Central banks of former Yugoslavia recording stable, even record profits

In sharp contrast to the European Central Bank (ECB), which ended 2024 with a record loss, the central banks of the former SFRY countries achieved stable, some even record profits, confirming the resilience and efficiency of their monetary policies in a challenging environment of high interest rates and inflationary pressures.

The National Bank of Serbia recorded an exceptionally strong result, with a net profit of 182.6 billion dinars (about EUR 1.55 billion). Part of the profit in the amount of 33.9 billion dinars (about EUR 288 million) was transferred directly to the Serbian budget, while the rest was used to strengthen financial reserves and cover risks.

The Central Bank of Montenegro (CBCG) achieved a net profit of EUR 12.2 million in 2024, of which 4.9 million was transferred to the state budget. The rest of the profit was allocated to legally prescribed reserves, which further strengthened the CBCG’s financial position and provided funds for the implementation of strategic projects, such as the project to introduce a modern instant payment system. From 2021 to 2024, the CBCG transferred around EUR 15 million in profit to the state budget.

The Central Bank of Bosnia and Herzegovina (CBBH) achieved a record net profit of 412.6 million convertible marks (around EUR 211 million) in 2024. Of this amount, 244.3 million convertible marks was transferred to the state budget, following the decision of the Governing Board in March 2025. This result far exceeds the profit from 2023, confirming a significant improvement in the bank’s performance and resilience in a changing economic environment. At the same time, commercial banks in BiH also achieved solid results: in the Federation of BiH, net profit amounted to 599.8 million convertible marks, while in Republika Srpska it reached 247.2 million convertible marks.

The Croatian National Bank (CNB) made a profit of EUR 10.5 million, of which EUR 8.4 million was paid into the state budget. Thus, the CNB continued its stable operations and contribution to public finances.

The Bank of Slovenia concluded the year with a positive result of EUR 1.24 million, while the commercial banking sector in Slovenia made a net profit of as much as EUR 1.076 billion, confirming the high profitability of the domestic financial system.

The modest profits of these two central banks can also be explained by the tightening of monetary policy at the euro-area level, as they are part of the Eurosystem and operate under the conditions of monetary policy dictated by the European Central Bank. In 2024, there were no significant new revenues from issued funds or interest on foreign exchange reserves, which is often key to the realization of a central bank’s profit. At the same time, increased uncertainty and global geopolitical and political developments limited the possibilities for generating higher revenues.

The Central Bank of the provisional institutions in Kosovo and Metohija made a profit of EUR 30.8 million in 2024, of which EUR 15.4 million was transferred to the state budget, almost double the year before. At the same time, commercial banks made a net profit of EUR 168.6 million during the year (an increase of 14.5%).

In contrast, the European Central Bank recorded a loss of EUR 7.944 billion in 2024 – the second largest in its history. The loss is due to the high interest that the ECB has to pay on commercial bank deposits, which exceeds the income from asset purchases through monetary programs over the past decade. Therefore, the ECB will not distribute profits to national central banks until the accumulated losses are covered in the coming years.

So, while the national central banks of the Western Balkans are successfully adjusting to market conditions and achieving positive results, the ECB is suffering the consequences of years of expansionary monetary policy. These differences further highlight the flexibility and resilience of regional financial systems in times of macroeconomic instability.

*Results for North Macedonia for 2024 are not yet available

National Bank of Serbia

NBS

Central Bank of Montenegro

CBCG

Central Bank Bosnia and Herzegovina

European Central Bank

profit of central banks of former SFRY