Switzerland's central bank on Monday announced a historic annual profit of 80.7 billion Swiss francs (about $89.50 billion) for 2024, fueled by robust equity markets, soaring gold prices and a stronger U.S. dollar.
The Swiss National Bank (SNB), which easily beat its previous record of 54 billion francs in 2017, saw a sharp turnaround from its 2023 loss of 3.2 billion and slightly bettered January's provisional expectations for full-year profit of about 80 billion francs.
During 2024 the SNB made a profit of 67.3 billion francs from its positions in foreign currency bonds and equities, as well as a valuation gain of 21.2 billion from gold holdings.
The performance means the SNB can pay out to the Swiss central and regional governments for the first time since 2021, along with a dividend to shareholders.
Net profit came to 15.9 billion francs, the SNB said, after factoring in its negative distribution reserve of 53.2 billion francs.
That would allow a dividend payment of 15 francs a share and profit distribution to the federal government and cantons worth 3 billion francs.
A third goes to the central government and two-thirds to the cantons, the SNB said.
However, it was too early to say how the SNB would perform in 2025, said UBS economist Alessandro Bee, as much depended on the policy of the new U.S. administration.
"In a benign scenario, equities have further upside potential from which the SNB would also benefit," he said.
"In case of a trade war, with lower equity prices, higher inflation and higher interest rate, the financial result of the SNB would be adversely affected."
