Schweizerische Nationalbank : Annual result of the Swiss National Bank for 2021

Ad hoc announcement pursuant to Art. 53 LR

Communications

P.O. Box, CH-8022 Zurich Telephone [phone] [e-mail]

Zurich, 7 March 2022

Annual result of the Swiss National Bank for 2021

The Swiss National Bank reports a profit of CHF 26.3 billion for 2021 (2020: CHF 20.9 billion).

The profit on foreign currency positions amounted to CHF 25.7 billion. A valuation loss of CHF 0.1 billion was recorded on gold holdings. The profit on Swiss franc positions was CHF 1.1 billion.

For the financial year just ended, the SNB has set the allocation to the provisions for currency reserves at CHF 8.7 billion. After taking into account the distribution reserve of CHF 90.9 billion, the net profit comes to CHF 108.5 billion. This will allow a dividend payment of CHF 15 per share, which corresponds to the legally stipulated maximum amount, as well as a profit distribution to the Confederation and the cantons totalling CHF 6 billion. The profit distribution will be made on the basis of the agreement between the Federal Department of Finance and the SNB of 29 January 2021.

Of the total amount to be distributed (CHF 6 billion), one-third goes to the Confederation and two-thirds to the cantons. After these payments, the distribution reserve will stand at CHF 102.5 billion.

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Zurich, 7 March 2022

Ad hoc announcement pursuant to Art. 53 LR

Profit on foreign currency positions

The profit on foreign currency positions was CHF 25.7 billion (2020: CHF 13.3 billion).

Interest and dividend income totalled CHF 7.0 billion and CHF 3.8 billion respectively. There was a divergence between bond and equity valuations. A price loss of CHF 16.1 billion was recorded on interest-bearing paper and instruments. Equity securities and instruments on the other hand registered a price gain of CHF 37.1 billion. Exchange rate-related losses totalled CHF 6.1 billion.

Valuation loss on gold holdings

At the end of 2021, the price of gold stood at CHF 53,548 per kilogram, 0.1% lower than

at the end of 2020 (CHF 53,603). This gave rise to a valuation loss of CHF 0.1 billion on the unchanged holdings of 1,040 tonnes of gold (2020: valuation gain of CHF 6.6 billion).

Profit on Swiss franc positions

The profit on Swiss franc positions totalled CHF 1.1 billion (2020: CHF 1.3 billion). It largely resulted from negative interest charged on sight deposit account balances.

Provisions for currency reserves

The SNB aims for a robust balance sheet with sufficient equity capital, to ensure that it can also absorb potentially high losses. Annual allocations to the provisions for currency reserves are therefore necessary. The allocation in a given year is determined on the basis of double the average nominal GDP growth rate over the previous five years. To ensure that sufficient allocations are made to the provisions for currency reserves even in periods of low nominal GDP growth, the minimum annual allocation is currently set at 10% of the provisions at the end of the previous year.

Since nominal GDP growth over the last five years has averaged just 1.6%, the minimum allocation of 10% will be applied for the 2021 financial year. This corresponds to CHF 8.7 billion (2020: CHF 7.9 billion). As a result, the provisions for currency reserves will grow from CHF 87.0 billion to CHF 95.7 billion.

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Zurich, 7 March 2022

Ad hoc announcement pursuant to Art. 53 LR

Income statement for 2021

In CHF millions

	Item no.		2021		2020		Change
	in Notes
Net result from gold			- 56.4	6	636.3		- 6 692.7
Net result from foreign currency
positions	1	25	656.4	13	286.3		+ 12 370.1
Net result from Swiss franc positions	2	1	064.9	1	332.6		- 267.7
Net result, other			17.0		- 5.8		+ 22.8
Gross income		26	681.9	21	249.5		+ 5 432.4
Banknote expenses			- 33.7		- 34.3		+ 0.6
Personnel expenses		- 182.8	- 182.0		- 0.8
General overheads		- 127.8	- 125.0		- 2.8
Depreciation on tangible assets			- 37.7		- 38.5		+ 0.8
Annual result		26	300.0	20	869.6		+ 5 430.4

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			Zurich, 7 March 2022
Ad hoc announcement pursuant to Art. 53 LR
Appropriation of profit for 2021
In CHF millions
		2021		2020			Change
Annual result	26	300.0	20	869.6			+ 5 430.4
− Allocation to provisions for currency reserves	- 8 698.1	- 7 907.4	- 790.7
= Distributable annual result	17	601.9	12 962.2			+ 4 639.7
+ Profit carried forward
(distribution reserve before appropriation of profit)	90	943.1	83 982.4			+ 6 960.7
= Net profit	108	545.0	96 944.6			+ 11 600.4
− Payment of a dividend of 6%		- 1.5		- 1.5	-
− Profit distribution to Confederation and cantons1	- 6 000.0	- 6 000.0	-
= Balance carried forward to following year's
financial statements
(distribution reserve after appropriation of profit)	102	543.5	90 943.1			+ 11 600.4

1 Profit distribution agreement of 29 January 2021 between the Federal Department of Finance and the Swiss National Bank.

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Zurich, 7 March 2022

Ad hoc announcement pursuant to Art. 53 LR

Balance sheet as at 31 December 2021

Assets

In CHF millions

	31.12.2021		31.12.2020		Change
Gold holdings	55	690.7	55	747.1		- 56.4
Foreign currency investments1	966	202.2	910	001.0		+ 56 201.2
Reserve position in the IMF	2	000.8	1	849.6		+ 151.2
International payment instruments	11	912.5	4	363.9		+ 7 548.6
Monetary assistance loans		908.0			907.6		+ 0.4
Claims from US dollar repo transactions	2	147.2	8	841.7		- 6 694.5
Claims from Swiss franc repo transactions	3	216.0			549.9		+ 2 666.1
Swiss franc securities	4	031.7	4	072.9		- 41.2
Secured loans	9	202.4	11	176.4		- 1 974.0
Tangible assets		437.2			438.0		- 0.8
Participations		135.6			134.0		+ 1.6
Other assets		891.9			945.6		- 53.7
Total assets	1 056	776.2	999	027.9		+ 57 748.3

1 Includes, as at end-December 2021, cash received from repo transactions relating to the management of foreign currency investments amounting to CHF 20.9 billion (end-2020: CHF 9.6 billion). The associated liabilities are included in the balance sheet under foreign currency liabilities and result in an increase in the balance sheet total.

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