Swiss National Bank reaps profits with super gold

Gold is driving the accounts of the Swiss National Bank (SNB). The Swiss central bank, which is controlled by the cantons but is also listed on the Zurich Stock Exchange, closed the year 2025 with an operating profit, thanks mainly to its bullion reserves. After fluctuations in profit over the course of the quarters, the past year thus ended with an overall positive balance.

According to provisional SNB figures, the institution's profit in 2025 was around CHF 26 billion (EUR 27.9 billion at current exchange rates). The sharp rise in the gold price played in favour of the SNB's balance sheet. On the gold reserves there was a capital gain of CHF 36.3 billion. On the foreign currency positions, there was a loss of around CHF 9 billion, which was also linked to the continuing strength of the Swiss franc, which undercuts the values of other currencies and has been particularly noticeable against the US dollar over the past year, less so against the euro. On Swiss franc positions, the loss amounted to CHF 0.9 billion.

The amount to be allocated to currency reserves according to the SNB will be CHF 12.7 billion. Considering the current distribution reserve of CHF 12.9 billion, the profit for 2025 remains at around CHF 26 billion. The SNB's operating profit in 2024 had been higher, at CHF 80.7 billion, but it is also true that in the two previous years, the SNB's balance sheet had closed with losses of CHF 3.2 billion in 2023 and CHF 132.5 billion in 2022. The Swiss National Bank's mandate is to maintain price and currency stability, the central bank is therefore not obliged to make profits. But in most years there have been profits, even substantial ones, with a share of these distributed to the Confederation and the cantons, as per agreement.

In the years when distribution to public bodies could not take place, there were extensive discussions in Switzerland. This year, however, there will be no discussions. This 2025 profit will, the SNB pointed out, allow a total of CHF 4 billion to be allocated to the Confederation and the cantons. Shareholders will be paid a dividend in the maximum amount stipulated by law, i.e. CHF 15 per share. The maximum dividend had also been paid out for 2024, with the Confederation and the cantons receiving a smaller sum of CHF 3 billion. In spite of a larger profit, the Swiss National Bank had had to limit its payments to public bodies, mainly due to the reserve provisions it had had to implement.

On the subject of foreign exchange reserves, it should be remembered that the SNB has expanded them a great deal over the years, buying foreign currencies (mainly euros and dollars) in order to curb the rise of the franc, seen by many investors as a safe haven. An overly strong franc creates a few more obstacles for Swiss exports and the SNB wants to avoid them. On the other hand, the currency's strength makes imports cheaper and helps keep inflation in Switzerland so low that Switzerland's benchmark interest rate is currently 0%. The SNB is forced to find the appropriate balance between the advantages and disadvantages of the very strong currency at every stage.