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[From Huge Losses to Profits Exceeding 10 Billion: Policy Dividends and Fiscal Injections Go Hand in Hand] ⑴ On Tuesday, the Bank of Italy announced a net profit of 1.7 billion euros in 2025, with approximately 1.3 billion euros allocated to the treasury, accounting for nearly 80%. This demonstrates that the central bank's profits directly support public finances, while approximately 340 million euros will flow back to financial institution shareholders in the form of dividends, resulting in a relatively clear profit distribution structure. ⑵ Compared to the previous two years, which recorded losses of 7.3 billion and 7.1 billion euros in 2024 and 2023 respectively, this round of profit improvement exceeds 10 billion euros, showing a significant reversal and highlighting the high sensitivity of the central bank's balance sheet to changes in the interest rate cycle. ⑶ The official statement attributes the profit recovery mainly to the policy effect brought about by the decline in interest rates, implying that the valuation pressure and financing cost burden under the previous high-interest-rate environment have eased, and the mismatch pressure between the asset and liability sides has converged simultaneously, driving an overall improvement in the financial situation. ⑷ Structurally, the improvement in the central bank's profits is not due to the expansion of the real economy, but rather reflects a book repair brought about by changes in the monetary policy environment. This profit quality is highly dependent on the future interest rate path, and the stability of profits remains uncertain once policies tighten again. (5) For the market, the central bank's resumption of fiscal injections has marginally alleviated pressure on public funds, but it has also strengthened expectations of a linkage between policy and fiscal policy. Going forward, the focus will be on the impact of interest rate changes on the central bank's profitability and the degree of fiscal dependence on this type of revenue.