Today, we will tell you about the Swiss Central Bank. Swiss central bank earns record profits in 2024 of $90 billion. Let’s start:
Swiss central bank earns record profits in 2024 of $90 billion
The Swiss National Bank has posted an all-time high annual profit in the amount of 80.7 billion Swiss francs ($89.50 billion) in 2024, according to the central bank on Monday, in the wake of the booming equity markets with rising gold prices as well as the strengthening U.S. dollar.
This bank beat the prior record by 54 billion francs in 2017. The bank saw a significant improvement from its loss in 2023 of 3.2 billion—the bank also higher than the January pro forma projections for full-year profits of 80 billion francs.
In 2024, the SNB recorded a profit of 67.3 billion francs through its investments in the foreign currency bond market and equity and a gain in value of 21.2 billion from its gold holdings.
The result means that the SNB can pay the Swiss regional and central government for the first time after 2021 in addition to a dividend for shareholders.
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Its net profit was 15.9 billion dollars. The SNB stated, after taking in its negative reserve for distribution of 53.2 billion francs.
It would be possible to make an annual dividend payment of 15 francs for each share, as well as a distribution of profits for the Federal government and cantons with a value of 3 billion francs.
A third of the money goes towards the federal government while two-thirds goes to the cantons, the SNB stated.
It was, however, too early to predict how the SNB will fare in 2025, according to UBS economics director Alessandro Bee, as much was dependent on the policy of the current U.S. administration.
“In a benign scenario, equities have further upside potential from which the SNB would also benefit,” the analyst added.
“In case of a trade war, with lower equity prices, higher inflation and higher interest rate, the financial result of the SNB would be adversely affected.”
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