The Swiss National Bank (SNB) expects a net profit of around 80 billion francs for 2024, based on preliminary calculations. In 2023, the SNB had reported a loss of 3,2 billion francs.

According to the applicable rules, this means that the Confederation and cantons will receive a distribution of 3 billion francs, as stated in a release on Thursday.

Profits from foreign currency positions amounted to approximately 67 billion francs in 2024. Valuation gains on gold holdings totaled 21,2 billion francs. However, the SNB recorded a loss of 7,4 billion francs on its Swiss franc positions.

16 Billion Francs Balance Sheet Profit

The allocation to the provisions for currency reserves will amount to 11,6 billion francs. After accounting for the negative distribution reserve of 53,2 billion francs, this results in a balance sheet profit of approximately 16 billion francs.

This allows for a dividend payment of 15 francs per share, which is the maximum amount permitted by law, as well as a profit distribution of 3 billion francs to the Confederation and cantons. One-third of this distribution will go to the Confederation, and two-thirds to the cantons.

Following these payouts, the distribution reserve will amount to around 13 billion francs.

The SNB will publish its detailed annual report on March 3, 2025, and its business report on March 18.

An Exceptional Year

Economists at UBS had predicted a profit for the SNB of between 77,5 billion francs and 82,5 billion francs in their outlook, describing 2024 as an «exceptional year» for the SNB. They pointed to the rise in the gold price, positive stock market performance, and the appreciation of the US dollar against the Swiss franc as key drivers.

While the cantons and the Confederation are likely satisfied with the results for obvious reasons, independent economist Adriel Jost is less enthusiastic. In a publication, he highlighted that the surge in gold prices and the relatively weak franc were the main contributors to the outcome.

Gold Price Surge as a Warning Sign?

He stated that he did not expect «the gold price to rise so sharply despite simultaneous positive economic and stock market developments—in other words, that global concerns about the future of the dollar-dominated monetary and financial system could be so significant without a current crisis.»

Additionally, he was surprised that the SNB is pursuing «a very expansive monetary policy without necessity, which has led to an undervalued franc.»

Jost also pointed to the steadily rising operating costs of the National Bank. «Given tight finances, there might also be potential for cost savings at the SNB,» he concluded.