Gold Price Surge Boosts Swiss National Bank to $33 Billion Profit

• The SNB's gold profit of 36.3 billion francs was its highest ever, boosted by a 64% rise in gold prices as investors sought safe-haven assets amid global economic turmoil from Trump tariffs
• Foreign exchange movements cost the SNB an estimated 55 billion francs, with losses on foreign currency positions (37% held in U.S. dollar assets) eroding gains from equity markets
• The 2025 profit ranked among the top five in the SNB's 119-year history, though down from the record 80.7 billion franc profit in 2024

Summary: Swiss National Bank Reports $33 Billion Profit on Gold Surge

The Swiss National Bank (SNB) posted a provisional profit of 26 billion Swiss francs ($33 billion) for 2025, driven primarily by surging gold prices as investors sought safe-haven assets amid global economic uncertainty.

Key Financial Highlights:

• 2025 profit of CHF 26 billion represents the fifth-largest in SNB's 119-year history, though down from record CHF 80.7 billion in 2024
• Record gold profit of CHF 36.3 billion from valuation gains on 1,040 metric tons of reserves
• Gold prices jumped 64% in 2025, boosting the value of holdings
• Foreign currency losses of CHF 9 billion due to franc strength
• Swiss franc position losses of CHF 900 million from interest payments

Market Dynamics:

The profit story reflects conflicting safe-haven flows. While gold's rally drove substantial gains, the Swiss franc's appreciation—another safe-haven asset—eroded returns on foreign investments. The franc strengthened 13% against the U.S. dollar, which particularly impacted the SNB's holdings, as 37% of its CHF 764 billion in foreign currency investments are dollar-denominated.

UBS economist Alessandro Bee estimated foreign exchange movements ultimately cost the SNB approximately CHF 55 billion, offsetting equity market gains when converted back to francs. Global economic turmoil triggered by U.S. President Donald Trump's tariffs drove the safe-haven demand.

Outlook:

The result aligned with UBS forecasts of CHF 23.5-28.5 billion, indicating market expectations were largely met despite the mixed impact of safe-haven flows on the central bank's diversified portfolio.