In the first quarter, the Swiss National Bank (SNB) recorded a profit of 59 billion francs. The main contributor to this record-high profit was the weakening of the franc, which resulted in higher profits from foreign currency investments. However, despite the impressive profit, a distribution to the state at the end of the year is unlikely. The SNB needs to generate a profit of 65 billion francs for the year as a whole for a minimum distribution to occur. To achieve the maximum payout of 6 billion francs, the profit would need to increase over 105 billion, which seems unlikely given current circumstances.
The financial markets in the first quarter showed exceptional development, with many investors taking advantage of currency fluctuations and other market opportunities. However, it is uncertain how the markets will develop by the end of the year. Even small price corrections can have major consequences for profits, and federal and cantonal financial politicians should exercise caution when making investment decisions.
Amidst these uncertainties, recent data on wage development suggests potential savings in public administration. With wages rising significantly in certain areas of government compared to private sectors, areas where cost savings could be made should be explored to address budget concerns. It is important for policymakers to keep these factors in mind while navigating through the financial landscape and making decisions that benefit both individuals and society as a whole.
