- The Swiss National Bank reported a second-quarter profit of 25.7 billion Swiss francs ($31.84 billion), reversing a 22 billion franc loss a year earlier.
- This profit beats UBS forecasts for a profit of 19 billion to 24 billion Swiss francs.
- The profit is attributed to rising equity markets, with the MSCI World Index gaining 13% in the second quarter.
- However, the bank incurred a loss of 14.1 billion francs on its gold holdings due to a 14% decline in gold prices.
The Swiss National Bank (SNB) reported a remarkable second-quarter profit of 25.7 billion Swiss francs ($31.84 billion), reversing a 22 billion franc loss from the previous year. This profit surge was largely attributed to a 39.9 billion franc gain on foreign currency positions, which included dividends, interest payments, and price gains from its extensive stock portfolio.1
The SNB's performance significantly outpaced UBS forecasts, which estimated profits between 19 billion and 24 billion Swiss francs. The recovery in equity markets, particularly the 13% gain in the MSCI World Index during the quarter, played a crucial role in this turnaround, as markets rallied in the U.S. and Europe, driven by increased investment in AI and reduced geopolitical tensions.34
However, the bank faced challenges with its gold holdings, reporting a 14.1 billion franc loss due to a 14% decline in gold prices, influenced by rising U.S. interest rates and a stronger dollar that dampened demand. Despite this setback, the overall financial health of the SNB has improved significantly compared to the previous year, when it recorded a loss of 22 billion francs.56
The SNB's ability to navigate these market fluctuations highlights its resilience and the impact of global economic trends on its financial performance.
“The Swiss National Bank's profit was bolstered by a 39.9 billion franc gain on foreign currency positions, despite a 14.1 billion franc loss on gold holdings due to a 14% drop in gold prices. The MSCI World Index's 13% gain in Q2 reflects a broader market recovery driven by AI investments and reduced geopolitical fears.”
