Swiss National Bank expects CHF 26 billion profit for 2025

The Swiss National Bank's provisional calculations for the 2025 financial year indicate a substantial profit, primarily driven by significant valuation gains on its gold holdings.

These gains, amounting to CHF 36.3 billion, provided a strong positive contribution to the central bank's overall financial performance.

However, this was partially offset by losses incurred on foreign currency positions, which totaled approximately CHF 9 billion.

Additionally, the SNB recorded a loss of CHF 0.9 billion on its Swiss franc positions.

Despite these losses, the robust performance of gold assets was sufficient to project a net profit of around CHF 26 billion.

This outcome reflects the diverse nature of the SNB's balance sheet and its exposure to various asset classes as part of its monetary policy operations.

The central bank's financial results are inherently volatile due to market fluctuations in exchange rates and asset valuations.

The projected profit enables the Swiss National Bank to allocate CHF 12.7 billion to its provisions for currency reserves.

With an existing distribution reserve of CHF 12.9 billion, the net profit allows for a dividend payment of CHF 15 per share, which is the legally stipulated maximum.

A total profit distribution of CHF 4 billion will also be made to the Confederation and the cantons.

This distribution follows the agreement between the Federal Department of Finance and the SNB from January 29, 2021.

According to this agreement, one-third of the distributed amount goes to the Confederation and two-thirds to the cantons.

After these payments, the distribution reserve is expected to be around CHF 22 billion.