Swiss central bank posts $23.3 billion profit in Q3

The Swiss National Bank reported a third-quarter profit of 19.1 billion Swiss francs, equivalent to $23.3 billion, on Friday. The central bank attributed the earnings primarily to its gold reserves and foreign currency assets.

This quarterly result pushed the year-to-date profit to 44.2 billion francs, or approximately $53.8 billion. The strong cumulative performance increases the likelihood of a year-end payout to Swiss federal and local governments.

Despite the large dollar figure, the third-quarter profit represents a year-on-year decline of almost 32 percent. The previous year's results were boosted by a record-breaking rally in gold prices.

In the third quarter of 2025, the bank recorded a net gain of 14.3 billion francs on gold. By comparison, the gain for the three months ending in September of this year was 7.6 billion francs. Gold prices surged by roughly 66 percent during 2025, but the metal has lost more than 7 percent of its value since the start of 2026.

Profits from foreign currency positions reached 11.6 billion francs in the current quarter. This figure marks a year-on-year decrease of about 15 percent. These positions include investments in international equities and government bonds.

The bank’s foreign currency reserves are heavily weighted toward government bonds, which account for 61 percent of the portfolio. Equities make up 28 percent, while other bonds comprise the remaining 11 percent. Euro-denominated assets represent 39 percent of the holdings, and U.S. dollar assets account for 37 percent.

The Swiss franc gained around 12 percent against the U.S. dollar in 2025 as investors sought safety following tariff announcements by U.S. President Donald Trump. However, the currency has lost about 3.6 percent against the dollar so far in 2026.

The Swiss National Bank holds a larger equity portfolio than peers such as the U.S. Federal Reserve and the Bank of England. It invests passively based on international stock index benchmarks, focusing on mid- and large-cap companies in developed markets. The bank states that its primary mandate is price stability rather than maximizing profit.

The institution distributes most of its profits to federal and local governments. If investments generate a loss, payouts may be reduced or suspended. The bank maintains an inflation target range of 0 percent to 2 percent, a stricter range than many international central banks.