The Swiss National Bank (SNB) announced a record annual profit of 80.7 billion Swiss francs ($89.50 billion) for 2024, according to Reuters.
The surge in profits was driven by strong performances in equity markets, rising gold prices, and a stronger US dollar, the central bank said on Monday.
The SNB’s 2024 profit far exceeded its previous record of 54 billion francs set in 2017. The bank attributed the exceptional results to foreign currency, equities, and gold holdings. The gains allowed the SNB to distribute profits to the Swiss federal and regional governments for the first time since 2021, alongside a dividend payment to shareholders.
After accounting for a negative distribution reserve of 53.2 billion francs, the SNB reported a net profit of 15.9 billion francs. This will enable a dividend payment of 15 francs per share.
While the 2024 results are impressive, UBS economist Alessandro Bee cautioned that the SNB’s performance in 2025 remains uncertain. Much will depend on the policies of the new US administration and global economic conditions.
In a benign scenario, equities have further upside potential from which the SNB would also benefit. In case of a trade war, with lower equity prices, higher inflation, and higher interest rates, the financial result of the SNB would be adversely affected.
The SNB’s record profit underscores its robust financial position and the favorable conditions in global markets during 2024. However, the central bank’s ability to sustain such performance in the coming year will hinge on external factors, including geopolitical developments and monetary policies in key economies.
