SNB to resume payments to state coffers after record profits

(Bloomberg) — The Swiss National Bank expects 2024 profits of about 80 billion Swiss francs ($88 billion), a record performance that will allow the institution to resume payments to state coffers.

The central bank said on Thursday that its annual income from foreign exchange reserves totaled about 67 billion Swiss francs due to years of foreign exchange purchases to keep the Swiss franc down. The Swiss National Bank’s gold holdings also increased, while Swiss franc positions posted losses.

The central bank will pay 3 billion francs to the federal government and states for the first time in three years. Dividends to private shareholders will be 15 francs per share.

Resuming payments could help quell domestic complaints about the SNB at a time when Donald Trump’s return to the White House could lead to renewed international scrutiny of its foreign exchange policy.

The Swiss National Bank closely monitors the level of the Swiss franc as a rise in the currency contributes to inflation, but may have shied away from intervention recently. Existing data shows that in the first nine months of 2024, China basically did not intervene in the foreign exchange market, but cut interest rates to deter speculators.

The Swiss franc typically attracts investors in times of uncertainty, and during Trump’s last term in office, Switzerland was labeled a currency manipulator due to the Swiss National Bank’s foreign exchange actions. The label was subsequently removed.

Separate data released on Thursday showed that the SNB’s foreign exchange reserves were worth CHF731 billion at the end of December. That’s about 12% higher than a year ago.

The gains are independent of how the SNB sets monetary policy. Final results will be announced on March 3.

—With the assistance of Christian Sydenberg.

(Update on foreign exchange reserves in penultimate paragraph)

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