The Swiss National Bank (SNB) reported a profit of approximately 26 billion Swiss francs (approximately $33 billion USD) for the 2025 financial year, marking one of the most profitable years since the institution’s founding in 1907. The central bank attributed the robust result largely to a dramatic surge in gold prices, which significantly boosted the value of its precious metal holdings.
The bank’s valuation gain on gold reached 36.3 billion francs, the largest such increase in its history, as gold prices rose sharply over the past year. Investors seeking refuge from economic uncertainty and global market volatility flocked to safe‑haven assets, driving the price of gold substantially higher and lifting the value of SNB’s holdings, which include around 1,040 metric tons of the metal.
Despite the strong performance in gold, the total profit figure for 2025 was notably lower than the record 80.7billion francs achieved in 2024; however, it nonetheless stands among the top five annual profits in the central bank’s 119-year history.
Currency Movements Temper Overall Returns
While gold valuations buoyed the SNB’s bottom line, other factors curtailed its overall returns. The bank recorded a 9 billion franc loss on its foreign currency positions, reflecting the impact of exchange rate movements on its extensive portfolio of international assets.
The Swiss franc’s appreciation against major currencies, including a 13 percent decline in the U.S. dollar relative to the franc, diminished the value of the SNB’s foreign currency investments when translated back into its reporting currency. This dynamic offset builds upon previously achieved gains in equity markets and dividend income held within those currency portfolios.
Economists noted that the flight to safety, which drove investors toward gold, also strengthened the Swiss franc, creating countervailing effects on the central bank’s financial position. According to UBS economist Alessandro Bee, exchange rate shifts may have resulted in overall valuation losses of approximately 55 billion francs across the SNB’s foreign exchange holdings.
In addition to foreign currency losses, the SNB reported a 0.9billion franc loss on Swiss franc positions, primarily associated with interest payments to commercial banks on deposits held at the central bank.
Broader Economic Context And Monetary Policy Signals
The SNB’s 2025 financial performance comes against a backdrop of broader economic and monetary trends. High demand for safe-haven assets, such as gold, reflected ongoing investor caution in global markets, as geopolitical and economic uncertainties persisted. Analysis from market observers suggests that gold prices may remain elevated in early 2026, potentially influencing future valuation gains or losses for institutions holding significant reserves.
The central bank’s results were broadly in line with forecasts by financial institutions, including UBS, which anticipated an annual profit in the range of 23.5 billion to 28.5 billion francs.
In recent policy communications, the SNB indicated a continued cautious approach to interest rates. Minutes from its December 2025 monetary policy meeting suggested that policymakers expect inflation to rise gradually within the target range and are likely to maintain the current policy rate at 0 percent for the foreseeable future. This stance underscores the bank’s focus on economic stability amid modest inflationary pressures.
The SNB’s financial outcomes for 2025 highlight the complex interplay between asset valuations, currency markets, and central bank policy decisions. While gold price spikes delivered substantial gains, exchange rate effects and operational costs underscored the challenges of managing a diverse portfolio in an uncertain global economic environment.
