The Swiss National Bank ( SNB ) stated on Friday that driven by its holdings of gold and foreign currencies, the bank achieved a profit of 19.1 billion Swiss francs (23.3 billion US dollars) from investments in the third quarter.

This has raised the central bank's profits from the beginning of the year to date to 44.2 billion Swiss francs, which is approximately 53.8 billion US dollars, and also increases its likelihood of making distributions to the Swiss federal government and local governments at the end of the year.

However, the overall profit in the third quarter of 2026 decreased by nearly 32% year-on-year.

The gains and losses recorded by SNB in the quarterly accounting update include interest income, dividends, as well as valuation adjustments due to exchange rate changes and market price fluctuations.

In 2025, the Swiss franc appreciated by about 12% against the US dollar. Previously, after US President Donald Trump announced tariff measures, investors flocked to this safe-haven currency, driving up the strength of the Swiss franc.

As of now, the Swiss franc has fallen by about 3.6% against the US dollar this year.

Profit drivers

In the third quarter of 2025, SNB recorded a net profit of 14.3 billion Swiss francs from its gold holdings; in contrast, during the three months up to September this year, the net profit from gold was 7.6 billion Swiss francs.

In 2025, gold experienced a record increase, with a year-on-year gain of about 66%. However, in 2026, its price trend became more volatile, and since the beginning of the year, the price of gold has fallen by more than 7%.

The profit from foreign currency positions (including investments in international stocks) reached 11.6 billion Swiss francs, a year-on-year decrease of about 15%. SNB

Most of SNB's foreign exchange reserves are held in the form of financial assets denominated in foreign currencies, rather than in physical currency. It also holds a smaller portfolio of Swiss franc bonds.

As of the end of the third quarter, 61% of its foreign exchange reserves were allocated to government bonds, including deposits held with central banks of various countries and the International Settlement Bank; 28% were invested in stocks; and 11% were invested in other bonds.

In terms of currency exposure, 39% of this investment portfolio is denominated in euros, and 37% is denominated in US dollars. The exposure to the Japanese yen and British pound accounts for 7% and 6% respectively.

SNB Stock Portfolio

Unlike other major central banks such as the Federal Reserve of the United States and the Bank of England, SNB holds a large-scale stock investment portfolio, which makes it rather special, as the latter two generally do not invest directly in the stock market.

However, SNB is a passive investor and therefore does not engage in individual stock selection. Its stock holdings are based on benchmark indices composed of international stock indexes, and its portfolio is mainly made up of stocks from medium and large companies in developed markets.

Most of its profits are distributed to the Swiss Federal Government and local governments; if its equity capital is sufficient, shareholders will also receive dividends. If the investment results in losses, SNB may not be able to make any distributions.

However, despite benefiting from strong investment performance, the investment goal of SNB is not to pursue the highest possible returns.

SNB states on its website: "For a traditional enterprise, profit is an important prerequisite for long-term success. In contrast, the goal of SNB is not to generate profits."

It carries another mission: to ensure price stability in Switzerland while also taking into account economic development.

The mission of monetary policy always holds the highest priority. Therefore, SNB sometimes has to make monetary policy decisions that may have a negative impact on its annual performance.

Unlike many other major central banks, the monetary policy authority of SNB allows it to use interest rates and exchange rates to achieve price stability; if necessary, it will also take measures to influence exchange rates.

The inflation target of SNB also makes it stand out among its international peers, with an inflation target range of 0% to 2%.