The Swiss National Bank (SNB) has reported a staggering annual profit of 80.7 billion Swiss francs for 2024—a dramatic turnaround from the previous year’s loss of 3.2 billion. The biggest driver of this success was a profit of 67.3 billion francs from foreign currency positions. Additionally, the bank’s gold holdings contributed a valuation gain of 21.2 billion, while franc positions posted a loss of 7.4 billion.
A key factor in this windfall was the surge in gold prices, which rose by 36.7% to 76,011 francs per kilogram. The SNB also benefited from exchange rate gains totaling 24.7 billion francs. Despite the strong financial performance, the bank remains cautious, allocating 11.6 billion francs to its foreign currency reserves.
Good news for shareholders: the dividend has been set at 15 francs per share—the maximum legally allowed. Furthermore, a total of 3 billion francs will be distributed to the Swiss government and cantons, with two-thirds going to the cantons and one-third to the federal government. After these payouts, the SNB’s distribution reserve will stand at 12.9 billion francs.
What does this record profit mean for Switzerland? While the SNB’s strong performance bolsters confidence, economic volatility remains a concern. Interest rate fluctuations, global currency movements, and geopolitical uncertainties could impact future results. For now, however, Switzerland can take pride in the strength of its national bank.