The Swiss National Bank (SNB) reported a profit of 59 billion francs in the first quarter, primarily due to the weakening of the franc. This resulted in a record-high profit, with the majority coming from foreign currency investments. The weakening franc led to a higher profit as the conversion of foreign currencies into francs resulted in a higher amount.
However, despite the impressive profit, a profit distribution to the state at the end of the year is unlikely. The SNB would need to generate a profit of 65 billion francs for the year as a whole for a minimum distribution to be possible. For the maximum payout of 6 billion francs, the profit would have to climb over 105 billion, which seems unlikely given the current circumstances.
The development of financial markets in the first quarter was exceptional, with the devaluation of the franc unlikely to continue at the same rate throughout the year. It is uncertain how the financial markets will develop by the end of the year, and even small price corrections can have major consequences for profits. This caution is advised for federal and cantonal financial politicians who have already come away empty-handed in the last two years.
Amidst the uncertainty of profit distributions from the SNB, recent data on wage development shows potential for savings in public administration. With wages rising significantly in the public sector compared to the private sectors, areas of potential savings could be explored to address the state’s financial worries. It is important to keep these factors in mind while navigating through the financial landscape.