The Swiss National Bank (SNB) reported a profit of approximately 26 billion Swiss francs ($33 billion AUD) for 2025, boosted by a substantial increase in gold prices. The central bank noted that investors sought safe-haven assets amidst global economic uncertainty during the year. The SNB is Switzerland’s central bank responsible for the nation’s monetary policy and issuing Swiss franc banknotes. It aims to ensure price stability and contribute to the stability of the financial system.
While the provisional profit was lower than the record 80.7 billion francs recorded in 2024, it still ranks among the top five results in the SNB’s 119-year history. The primary driver of the 2025 result was a 36.3 billion francs valuation gain on its gold holdings. This surge was attributed to investors flocking to the precious metal as a shield against economic turmoil, partly triggered by tariffs imposed by the U.S. President. The SNB’s gold profit marked its largest ever, benefiting from a 64% rise in gold prices, which increased the value of its 1,040 metric tons of reserves.
However, the central bank’s profits were partially offset by a 9 billion francs loss on foreign currency positions. The strength of the Swiss franc eroded valuation gains on equities and dividends. Analysts noted that the SNB, holding 37% of its 764 billion francs in foreign currency investments in U.S. dollar assets, was impacted by the dollar’s 13% decline against the franc in 2025.
UBS economist Alessandro Bee commented on the mixed impact of the ‘flight to safety’ on the SNB in 2025. While the increase in gold prices benefited the SNB, the Swiss franc’s appreciation resulted in losses when converting foreign equity market gains back into francs. Bee estimated that foreign exchange movements cost the SNB approximately 55 billion francs. The bank also recorded a 900 million francs loss on its Swiss franc positions, mainly due to interest payments to commercial banks. The overall profit was in line with UBS’ forecast of 23.5 billion to 28.5 billion francs.
