The Bank of Italy results announced by Panetta showed net profit of 815 million euros, of which 200 million will go in dividends to its shareholders made up of banks, insurers and other financial institutions.
"Profit for the state is 615 million euros, down 1,061 million," Panetta said in a speech in Rome.
The bank's financial result excluding taxes was a loss of 7.1 billion euros, Panetta said, which was covered with 5.6 billion euros taken from its risk management fund, and tax-related adjustments.
In 2022 it registered a pre-tax profit of 5.9 billion euros.
Explaining the drivers of the 2023 loss, Panetta said the rise in ECB rates led to an increase in the cost of balance sheet liabilities - mainly banks' deposits.
This was not matched by a corresponding increase in the return on monetary policy assets.
The governor said that losses were common among euro zone central banks last year, and added that the Bank of Italy expects another negative result this year.
($1 = 0.9267 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
