Swiss National Bank: the cantons’ central bank posts a bumper profit
Half-yearly profit of 25.2 billion francs (27 billion euros at the current exchange rate)
Lugano
The Swiss National Bank (SNB) posted a substantial profit in the first half of this year. The Swiss central bank, which is controlled by the cantons but is also listed on the Zurich Stock Exchange, recorded a profit of 25.2 billion francs (27 billion euros at the current exchange rate). The result was driven by foreign exchange positions, which showed a positive balance of 31.7 billion Swiss francs. Gold reserves, on the other hand, recorded a loss of 6.4 billion Swiss francs, thus reversing the previous trend, which had seen gold make a significant contribution to the bank’s overall annual profit in 2025.
Foreign currency positions in the first six months of 2026 were supported, on the one hand, by the resilience of the financial markets and, on the other, by the fact that the Swiss franc did not strengthen during the period. Despite geopolitical tensions and armed conflicts, share markets have generally moved higher, albeit with some volatility, and this has supported the SNB’s investments, in which shares and bonds play a significant role. For its part, the franc remains strong, serving as a safe haven for some investors, but it did not strengthen further during the half-year (it gained little against the euro and lost some ground against the US dollar) and therefore did not, on the whole, erode the value of investments in other currencies. Gold, after a long rally, has fallen, and the SNB’s figures reflect this trend: a kilo of gold stood at 110,919 francs at the end of December 2025 and at 104,812 francs at the end of June this year.
The Swiss National Bank holds substantial foreign exchange reserves, partly because it has been buying foreign currencies for years in order to keep the franc in check. A strong currency has the advantage of making imports cheaper and helping to keep inflation very low, but it creates additional obstacles for Swiss exports. The SNB is therefore constantly seeking a balance where the franc is strong, but not too strong. The other main tool used to curb the Swiss currency is interest rates. The Swiss reference rate is currently 0 per cent, and the central bank is trying to avoid a return to negative rates, which have already been seen in previous years, with the associated problems for the banking and financial sector and for savers. The SNB’s leadership now appears to be focusing more on purchasing foreign currencies, if necessary, than on interest rates.
The first quarter of this year ended with a modest loss for the SNB, with volatility in its foreign currency positions and gold holding up to some extent. However, in the second quarter the situation changed, with gold falling and foreign currency investments showing a substantial gain. The SNB’s mandate is to maintain price stability and the stability of the national currency; the institution is not obliged to aim for a profit. In most years, however, a profit has been made, and there is considerable focus on this aspect in Switzerland, not least because the bank makes payments to the Confederation and the cantons, as well as to private shareholders (albeit with a cap on dividends), once provisions for currency reserves have been deducted. The annual profit for 2025 stood at 26.1 billion francs, with 4 billion francs going to the Confederation and the cantons.
