Record Profits Recorded by Swiss National Bank Following Previous Sizable Losses
The Swiss National Bank (SNB) saw a staggering surge in its estimated annual profit for 2024, pegged at an impressive 80 billion Swiss francs ($87.7 billion). This figure supersedes the 2017 record of 54.4 billion francs, marking a significant turnaround from the disastrous year of 2022.
In stark contrast, 2022 brought the SNB a monumental loss of a whopping 132.5 billion francs, a figure that stood as the largest loss in the bank's 115-year history. This catastrophic loss was primarily due to volatile share prices, interest rates, and unfavorable exchange rates, compounded by a challenging geopolitical environment. The Swiss franc's appreciation significantly contributed to the bank's currency-related losses.
Despite the stormy waters of 2022, the bank managed to weather the crisis and posted a smaller loss of 3.2 billion francs in 2023. After a temporary suspension in 2022 and 2023, the bank has now announced it will provide three billion francs to the country's cantons and government.
The bank's impressive 2024 profit recover is attributed to a boon of higher gold prices, a strengthening Swiss franc against the dollar, and a healthier stock market. Analysts at UBS Bank had predicted this profit figure, crediting the SNB's improved financial health to these factors.
The final numbers will be officially unveiled on March 3rd. While the SNB's financial outlook appears promising, ongoing market and currency risks ensure that future profits remain uncertain. Keep in mind, the bank's profits are subject to the whims of share prices, gold prices, and exchange rates, making them difficult to predict.
In the aftermath of the record-breaking loss in 2022, the Swiss National Bank (SNB) is expected to distribute 3 billion Swiss francs to cantons and the government, signifying a recovery in their business operations. The bank's projected 80 billion Swiss francs profit for 2024 in the finance sector is primarily attributable to positive factors such as higher gold prices, a strengthening Swiss franc, and a healthier stock market, as estimated by analysts at UBS Bank.
