Switzerland: the SNB generates a net profit of almost 80 billion

The Swiss National Bank (SNB) should have generated a net profit of 80 billion francs for the year 2024, estimates UBS. In the opinion of the experts of the number one Swiss bank, nothing stands in the way of future payments to the Confederation and the cantons.

On the only 4^e quarter, the issuing institute should have reaped a net profit of 15 to 20 billion francs. The annual net profit should thus rise to between 77.5 and 82.5 billion, UBS indicated in its study on Monday. The performance displayed between October and the end of December should have benefited in particular from the appreciation of the price of gold, that of the US dollar as well as the progression of the stock markets.

On the other hand, the rise in bond yields would have weighed on the result, continues the big bank. Thanks to the annual result, distributions to the Confederation and the cantons are now “very likely”, note UBS experts. Of course, the SNB must compensate for the balance sheet loss of 53 billion francs for 2023 and allocate a part of its profit to the provision for monetary reserves, but the remaining amount of 13 to 18 billion would be sufficient.

According to the agreement signed between the Central Bank and the Federal Department of Finance, the Confederation and the cantons are entitled to a distribution of 3 billion francs in the event of a balance sheet profit of between 10 and 20 billion francs. The SNB, which will reveal its annual results next Thursday, had waived these payments in 2022 and 2023.

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