The Swiss National Bank beat UBS’ profit estimates for 2021 and says it will distribute the maximum amount it agreed on with government last year, to the cantons.
The Swiss National Bank will make maximum payouts to the cantons after reporting an expected 26 billion Swiss francs ($28.3 billion) in profits for 2021, it said in a statement Friday.
Profits, which surpassed UBS' estimate of 20 billion francs, were driven by its foreign currency positions, which accounted for almost all of the gains.
Gains made from its Swiss franc positions - which equate to income from the penalty interest that the SNB levies on banks' cash deposits - amounted to around 1 billion francs, while the valuation of the bank’s gold holdings fell by 100 million francs.
Fuelling Debate
Of the total amount to be distributed (6 billion francs), one-third will go to the Confederation and two-thirds to the cantons, which is the maximum amount as agreed with the Federal Department of Finance last year.
The windfall is likely to fuel the political debate about what SNB profits should be used and could embolden those who say some should go towards social security (AHV) funding.
A detailed report on the annual result with definitive figures will be released on March 7, and the annual report will be published on March 22.
