Swiss central bank sees record profit after big losses

A picture taken on September 25, 2019 in Bern shows the building of the Swiss National Bank (SNB. BNS) the central bank of Switzerland. (Photo by FABRICE COFFRINI / AFP)

Zurich, Switzerland — The Swiss central bank said on Thursday it expects to post a record profit for 2024, boosted by a stock market rally and gold after two years of losses.

The Swiss National Bank said its full-year profit was provisionally estimated to have reached 80 billion Swiss francs ($87.7 billion) — far above the 2017 record of 54.4 billion francs.

The SNB added that it would provide three billion francs to the country’s cantons and government after such payouts were suspended in 2022 and 2023, when the bank was in the red.

READ: Swiss central bank announces big rate cut to boost economy

The bank was hit a by a record loss of 132.5 billion francs in 2022, when its stock market investments tanked.

It posted a loss of 3.2 billion francs in 2023 after it raised interest rates out of negative territory in an effort to tame inflation.

The 2024 profit figure was in line with forecasts from UBS bank analysts, who said the SNB benefitted from higher gold prices, the strengthening of the franc against the dollar and last year’s stock market boom.

Final figures will be published on March 3.