ZURICH, March 3 (Reuters) - The Swiss National Bank announced on Monday a record annual profit of 80.7 billion Swiss francs ($89.50 billion) in 2024. Bolstered by soaring equity markets, increasing gold prices, and a stronger U.S. dollar, the central bank surpassed its previous record of 54 billion francs in 2017. This marked a significant rebound from the 3.2 billion franc loss in 2023 and slightly exceeded the anticipated full-year profit of around 80 billion francs set in January.
Throughout 2024, the SNB achieved a profit of 67.3 billion francs from its foreign currency bonds and equities, with an additional valuation gain of 21.2 billion from gold holdings.
With this performance, the SNB is now able to distribute funds to the Swiss central and regional governments for the first time since 2021, in addition to providing dividends to shareholders. The net profit totaled 15.9 billion francs after accounting for the negative distribution reserve of 53.2 billion francs.
This enabled a dividend payment of 15 francs per share and profit distribution of 3 billion francs to the federal government and cantons, with one-third going to the central government and two-thirds to the cantons, according to the SNB.
UBS economist Alessandro Bee noted that predicting the SNB's 2025 performance was premature, as it hinged significantly on the policies of the new U.S. administration. He pointed out, "In a benign scenario, equities have further upside potential from which the SNB would also benefit." Conversely, "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."
($1=0.9017 Swiss francs)