SNB Posts Record Profit of Nearly $90 Billion in 2024

Key Profit Contributors

Throughout 2024, the SNB generated 67.3 billion francs from its investments in foreign currency bonds and equities. In addition, the central bank enjoyed a valuation gain of 21.2 billion francs from its gold holdings. These gains have enabled the SNB not only to break its historical profit record but also to resume dividend payments to the Swiss central and regional governments for the first time since 2021, along with issuing dividends to its shareholders.

Dividend and Distribution Details

After accounting for a negative distribution reserve of 53.2 billion francs, the SNB’s net profit reached 15.9 billion francs. This robust financial performance allows for a dividend payment of 15 francs per share and profit distributions totaling 3 billion francs, which will be divided between the central government and cantons—one-third going to the central government and two-thirds to the cantons.

Outlook for 2025 and Economic Uncertainties

Looking ahead, UBS economist Alessandro Bee cautions that future performance is uncertain and largely contingent on the policies of the new U.S. administration. Bee highlighted that in a favorable scenario, continued equity market gains could further benefit the SNB. However, he warned that a potential trade war leading to lower equity prices, higher inflation, and rising interest rates could negatively impact the central bank’s financial results.

Conclusion

The record-breaking profit of the SNB in 2024 underscores the strength of Switzerland’s financial position amid booming markets and favorable currency dynamics, although future economic conditions remain unpredictable and will be closely monitored by market participants.