First-half profit reaches 25.2 billion francs on equity gains
The Swiss National Bank reported a profit of 25.2 billion francs for the first half of 2026, driven by strong gains on foreign currency positions. A gold valuation loss of 6.4 billion francs partially offset high equity market returns.
Equity gains power foreign currency returns
Foreign currency positions generated a profit of 31.7 billion francs between January and June 2026.
The primary driver was substantial price gains on equity securities and instruments, which contributed 22.9 billion francs.
Interest and dividend income added 6.7 billion francs and 1.7 billion francs respectively, while exchange rate movements generated a further 2.5 billion francs in net gains.
These inflows were partially offset by capital losses of 1.7 billion francs on interest-bearing paper and instruments, alongside interest expenses amounting to 0.4 billion francs.
Total assets expanded to 913.6 billion francs by the end of June 2026, reflecting the overall growth in foreign currency reserves.
Gold price decline creates valuation drag
In contrast to foreign currency holdings, the SNB recorded a valuation loss of 6.4 billion francs on its unchanged gold volume.
Gold traded at 104,812 francs per kilogram at the end of June 2026, down from 110,919 francs at year-end 2025.
Meanwhile, Swiss franc positions delivered a modest profit of 0.1 billion francs, driven mainly by interest earned on sight deposit accounts and liquidity-absorbing repo transactions and SNB Bills.
A paper windfall built on volatile markets
The bumper result highlights the central bank's reliance on global equity market swings.
Yet these paper gains remain fragile while gold prices and exchange rates fluctuate unpredictably.
Public treasuries should not treat this interim surplus as a guarantee for year-end payouts.