The Bundesbank published its 2016 annual report on 23 Feb. It shows that its distributable profit for 2016 hit its lowest level since 2003, at €0.4 bn. This is striking as the size of its balance sheet hit a new high, at €1393 bn, because of the direct asset purchases (QE) and of the claims within the Eurosystem (TARGET 2). Note that the Bundesbank earned €1.4 bn from SMP holdings in 2016 and lost €0.1 bn because of PSPP holdings.
The Bundesbank earned €1 bn because of the negative rate applied on banks’ deposits. This helps to understand the reluctance of the Bundesbank to go further in terms of QE extension.