Swiss National Bank Set for Major Payout After Strong 2025 Performance
The Swiss National Bank (SNB) is set to make a substantial payout to the government and cantons, according to Karsten Junius, chief economist at Bank J Safra Sarasin. This follows a strong full-year performance, despite significant foreign currency interventions in the second quarter of 2025.
The SNB bought 5.1 billion francs worth of foreign currencies to prevent franc appreciation, but details on gains from its gold and equity portfolio remain unclear. Despite this, Junius expects the rising gold price to boost the SNB's earnings, offsetting potential losses from a weakening dollar. The SNB kept its key interest rate at 0%, with inflation pressures stable and overall economic growth solid, although uncertainty persists in certain industry sectors due to US trade tensions.
The SNB's gold holdings contributed significantly to its earnings. In the third quarter of 2025, a gain of approximately 15 billion francs ($19 billion) was recorded, the largest quarterly increase this year. The SNB holds 1,040 tons of gold and has substantial investments in US tech stocks like Nvidia Corp, Microsoft Corp, and Apple Inc. These investments likely also saw gains, contributing to the overall profit for the nine-month period. The increase in gold prices helped offset total losses incurred in the first half of the year due to a strong dollar.
The SNB will report its nine-month earnings on October 31, 2025. Given the strong performance, Finance Minister Karin Keller-Sutter's advocacy for budget cuts and voters' approval of tax cuts may ease pressure on public finances. The SNB resumed payouts in 2024, handing over 3 billion francs to the government and regions, and a similar or larger payout is expected this year.
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