Swiss National Bank Posts Q3 Profit of 19.1 Billion Francs on Gold and FX
The Swiss National Bank reported a third-quarter profit of 19.1 billion francs, bringing its yearly total to 44.2 billion francs. The gains were driven by gold and foreign currency holdings, though profits fell 32% year-on-year.
The Swiss National Bank (SNB) announced on Friday that it posted a third-quarter profit of 19.1 billion Swiss francs ($23.3 billion) from its investments, driven largely by its gold and foreign currency holdings. This brings the central bank's cumulative profit for the year to 44.2 billion francs, or approximately $53.8 billion, raising the prospect of payouts to the Swiss federal government and cantons at the end of the year.
Despite the strong quarterly figures, the overall profit for the third quarter of 2026 reflects a decrease of nearly 32% compared to the same period last year. According to market data, central bank quarterly profits and losses include interest income, dividends, and valuation adjustments driven by exchange rate fluctuations and asset price movements. The Swiss franc strengthened by about 12% against the US dollar in 2025, partly due to safe-haven flows following US President Donald Trump's tariff announcements, though the franc has weakened by about 3.6% against the dollar so far this year.
The SNB recorded a net profit of 14.3 billion francs from its gold holdings in the third quarter of 2025, compared to a net profit of 7.6 billion francs in the three months ending September this year. While gold prices surged by roughly 66% and hit record highs in 2025, 2026 has been marked by higher volatility, with the precious metal losing more than 7% of its value year-to-date. Meanwhile, profit from foreign currency holdings, which include international equity investments, reached 11.6 billion francs, down about 15% year-on-year.
The Swiss central bank holds the majority of its foreign exchange reserves in financial assets denominated in foreign currencies rather than cash, alongside a smaller portfolio of Swiss franc-denominated bonds. At the end of the third quarter, 61% of foreign currency reserves were invested in government bonds, including deposits at central banks and the Bank for International Settlements (BIS). Another 28% was invested in equities and 11% in other bonds. In terms of currency exposure, 39% of the portfolio was denominated in euros and 37% in the US dollar, while exposure to the Japanese yen and British pound stood at 7% and 6%, respectively.
Unlike major central banks such as the US Federal Reserve and the Bank of England, which generally do not invest directly in stock markets, the SNB maintains a large equity portfolio. However, the Swiss central bank acts as a passive investor, tracking an index composed of international equity benchmarks with holdings focused primarily on mid- and large-cap companies in developed markets.
Central bank profits are largely distributed to the Swiss federal government and cantons, while shareholders receive a dividend if the bank's equity capital is sufficient. If investments generate a loss, payouts may be suspended. Nevertheless, the SNB stresses that its investments are not aimed at maximizing returns.
«For a regular company, profit is an important condition for long-term success. By contrast, the goal of the Swiss National Bank is not to generate a profit,» the bank stated on its website. «It has a different mandate: it must ensure price stability in Switzerland, while taking due account of economic developments.»
