Swiss National Bank (SNB) incurs over 15 billion francs in losses, while reporting profits of 195 million francs during the initial phase of the year.
The Swiss National Bank (SNB) announced a loss of CHF 15.3 billion in the first half of 2025, primarily due to the weakening of the US dollar against the Swiss franc.
The loss, revealed in a statement on Thursday, was largely attributed to a CHF 22.7 billion decline in the value of the SNB's foreign currency holdings. The US dollar's depreciation since early April significantly impacted the value of the bank's dollar-denominated assets when converted into Swiss francs.
Key factors contributing to the loss include:
- The US dollar's weakness was the main driver of the loss, despite stock market recoveries and even some valuation gains in gold holdings, which partially offset foreign currency losses.
- The SNB faced a CHF 22 billion loss in the second quarter alone, with much of it tied to foreign currency positions.
- Gold holdings, while gaining CHF 8.6 billion in valuation over the period, posted a loss in the second quarter due to the weak dollar.
- The dollar’s weakness was partly tied to tariff-related turmoil and broader currency market dynamics.
The SNB's large foreign currency portfolio, heavily exposed to US dollars, suffered valuation losses as the dollar weakened sharply against the Swiss franc. This currency effect was more significant than other investment factors during the period.
The loss of over CHF 15 billion is a significant event for the SNB and represents a setback in its efforts to maintain stability in the Swiss economy.
[1] Source: Swiss National Bank press release, 2025 [3] Source: Financial Times, 2025
The Swiss National Bank (SNB) experienced a loss of over CHF 15 billion in the first half of 2025, with the economic and social policy implications potentially impacting the overall health of the Swiss business sector. The primary reason for this loss was the weakening of the US dollar against the Swiss franc, which led to significant valuation losses in the SNB's foreign currency portfolio, including its finance holdings denominated in US dollars.
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