SNB Reports First-Quarter Profit Thanks to Large Gold Gains

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The Swiss National Bank’s gold holdings allowed the central bank to report a first-quarter profit, a respite before a recent surge in the franc hits its earnings. 

The SNB notched up a gain of 6.7 billion francs ($8.1 billion) from January through March, it said in a statement on Thursday. That’s a fairly subdued start into the year due to an underperforming stock portfolio.

In contrast with previous quarters, the profit stemmed solely from a valuation gain — 12.8 billion francs — on the SNB’s gold reserves. Its asset hoard in foreign currencies, usually the top earner, generated losses of 5.3 billion francs. 

Swiss franc positions yielded a loss of 0.7 billion francs, mainly because the institution had to pay interest on deposits of commercial banks.

Economists at UBS had predicted a profit in the range of 5 to 15 billion francs, fueled by the gold price surge since the beginning of 2025. A profit for the year is uncertain, however, as the SNB has lost about 50 billion francs this month, according to UBS’s Florian Germanier and Alessandro Bee. 

This is due to a sharp appreciation of the franc after the announcement of US tariffs by President Donald Trump, they said. A rise of the Swiss currency tends to hurt the SNB’s bottom line.

The earnings will likely be a topic at the central bank’s annual general meeting on Friday in Bern. A record result for last year enabled the institution to resume payouts to state coffers and private shareholders for the first time since it accrued a record loss in 2022. 

The volatility in the SNB’s annual earnings is due to its large balance sheet — currently some 860 billion francs — accrued as a result of years of purchases to weaken the franc.

The central bank on Thursday acknowledged the situation, warning that “strong fluctuations are therefore to be expected, and only provisional conclusions are possible as regards the annual result.”

To be able to continue payouts this year, the central bank will have to earn between 37 billion and 47 billion francs in the remainder of 2025, according to UBS.

What the institution earns from its operations doesn’t influence monetary policy. The SNB’s six-month results are due on July 31.

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