Swiss National Bank Projects Record CHF80 Billion Profit for 2024

The Swiss National Bank (SNB) has announced an anticipated record profit of CHF80 billion ($87.7 billion) for the 2024 financial year, marking a significant turnaround from previous years. This substantial projection represents one of the largest profits in the central bank's history and signals a robust recovery in Switzerland's monetary operations.

The record profit stems from multiple sources, with foreign currency holdings generating the largest gain of approximately CHF67 billion. Gold holdings contributed significantly with a capital gain of CHF21.2 billion, reflecting the strategic importance of Switzerland's gold reserves. However, franc positions recorded a loss of CHF7.4 billion, partially offsetting these gains. The provision for currency reserves will amount to CHF11.6 billion.

Following this strong financial performance, the SNB will resume its distributions to the federal government and cantons, totaling CHF3 billion. The federal government will receive CHF1 billion, while the cantons will receive CHF2 billion. Shareholders will receive the maximum dividend allowed by law at CHF15 per share. After these distributions, the reserve for future distributions will stand at approximately CHF13 billion.

This positive outcome represents a marked improvement from recent years. In 2023, the SNB recorded a loss of CHF3.2 billion, which prevented any distributions to the federal government and cantons. Similarly, no payments were made in 2022, while 2021 saw distributions of six billion francs. The final detailed earnings report for 2024 will be published on March 3, with the Annual Report following on March 18.