The Swiss National Bank (SNB) has reported a hefty profit of 19.1 billion Swiss francs, or $23.3 billion, for the third quarter. This gain is largely thanks to the bank's substantial investments in gold and foreign currencies. With this boost, the SNB's total profit for the year has reached 44.2 billion francs, which is about $53.8 billion. This figure could mean a distribution to Swiss federal and local governments by the end of the year.
But while these numbers are impressive, the third-quarter profit actually marks a 32% drop compared to the same time last year. The SNB's financial results for the quarter factor in interest income, dividends, and adjustments in valuation that are swayed by exchange rate shifts and market prices. In 2025, the Swiss franc appreciated by roughly 12% against the U. S. dollar, as its safe-haven status was bolstered by U. S. tariff news. Yet, this year, it has depreciated by about 3.6% against the dollar.
Gold investments brought in a net gain of 14.3 billion francs for the SNB during the third quarter of 2026. This is a significant jump from the prior year's gain of 7.6 billion francs in the same quarter. Gold had a remarkable rally in 2025, with its value soaring by around 66%. However, in 2026, it has faced some volatility, dropping over 7% in value since the beginning of the year.
The SNB's foreign currency positions, which include international equities, generated a profit of 11.6 billion francs. However, this reflects a 15% decline from the previous year. The bank's foreign currency reserves are mainly invested in financial assets denominated in foreign currencies, with a smaller portion held in Swiss franc bonds. By the end of the third quarter, 61% of these reserves were in government bonds, including deposits with central banks and the Bank for International Settlements. Meanwhile, 28% were in equities, and 11% in other bonds.
Looking at currency exposure, the SNB's portfolio is made up of 39% euros and 37% U. S. dollars, with Japanese yen and British pound holdings making up 7% and 6%, respectively. The SNB's substantial equity portfolio sets it apart from major central banks like the U. S. Federal Reserve and the Bank of England, which typically do not invest in equities directly. However, the SNB operates as a passive investor, following a benchmark index of international stock indexes mainly consisting of mid- and large-cap companies in developed markets.
The profits generated by the SNB are mainly distributed to Switzerland's federal and local governments, with shareholders receiving dividends if the equity capital allows. If the bank encounters investment losses, these payouts might not be possible. Despite strong investment performance, the SNB stresses that profit maximization is not its primary goal.
"For a conventional company, profits are an important prerequisite for long-term success. The SNB's goal, by contrast, is not to generate profit, " the bank states on its website. "It has another mandate: It must ensure price stability in Switzerland, while taking due account of economic developments."
The SNB's monetary policy mandate focuses on price stability rather than profit, using interest and exchange rates to achieve this. The bank's inflation target is set between 0% and 2%, distinguishing it from many international counterparts. The SNB may take monetary policy actions that could negatively impact its annual results if necessary to maintain price stability.
