The Swiss National Bank (SNB) reported a profit of 26 billion Swiss francs ($33 billion) for 2025, driven by a record surge in gold prices as investors sought safe-haven assets amid global economic uncertainty. While below the record 80.7-billion-franc profit in 2024, the 2025 result ranks among the top five annual profits in the SNB’s 119-year history.

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Record Gold Gains Drive SNB Profits

The SNB’s 2025 profit was propelled by a 36.3-billion-franc valuation gain on its gold holdings, reflecting a 64% increase in gold prices over the year. The central bank’s 1,040 metric tons of gold reserves appreciated substantially, highlighting the enduring role of precious metals as a hedge against economic and geopolitical turmoil, including uncertainty stemming from U.S. tariffs under President Donald Trump.

UBS economist Alessandro Bee noted:
“The flight to safety had a mixed effect for the SNB. Gold soared, boosting profits, but the appreciating Swiss franc turned gains in foreign equity markets into losses when converted back into francs.”

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Swiss Franc Strength Caps Foreign Currency Gains

Despite the record gold profit, the SNB faced foreign currency losses, largely due to the Swiss franc’s 13% appreciation against the U.S. dollar in 2025:

• Losses on foreign currency positions totaled 9 billion francs, offsetting some equity and dividend gains.
• The SNB holds 37% of its 764 billion francs in foreign currency investments in U.S. dollar-denominated assets.
• Additional losses of 900 million francs were recorded on Swiss franc positions, primarily due to interest payments to commercial banks with sight deposits.

Bee estimated that the combined effect of foreign exchange movements cost the SNB around 55 billion francs last year, highlighting the impact of currency volatility on central bank balance sheets.

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Overall Performance in Context

Despite challenges from currency fluctuations, the SNB’s 2025 profit of 26 billion francs fell within UBS’ forecast range of 23.5 billion to 28.5 billion francs. Analysts emphasize that the SNB’s performance underscores the central bank’s dual exposure to gold and foreign currency markets, balancing gains from precious metals with risks from foreign exchange fluctuations.

• Gold holdings remain the main contributor to profits during periods of economic uncertainty.
• Foreign currency exposure continues to create volatility in annual results.
• The Swiss franc’s status as a safe-haven currency provides stability but can also limit gains from global equity markets.

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Key Takeaways

• SNB profit for 2025: 26 billion Swiss francs ($33 billion).
• Record gold gains contributed 36.3 billion francs.
• Swiss franc appreciation led to a 9-billion-franc loss on foreign currency positions.
• Total loss from currency movements estimated at 55 billion francs.
• Overall results align with UBS forecasts and rank among the SNB’s top five annual profits.