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Switzerland’s Federal Department of Finance and the Swiss National Bank have signed a profit distribution agreement covering the 2026–2030 financial years. The terms keep the maximum annual distribution at CHF 6 billion, conditional on the SNB’s financial position, and lower its minimum annual allocation to provisions from 10% to 8%, subject to Bank Council approval.
Switzerland’s Federal Department of Finance and the Swiss National Bank have signed a new agreement setting the terms for distributing SNB profits to the Confederation and cantons from the 2026 through 2030 financial years. The arrangement keeps the existing distribution formula, allowing up to CHF 6 billion per year when the bank’s financial position permits.
The agreement, announced by the SNB on October 1, replaces the previous arrangement, which covered the 2020–2025 financial years. The central bank says the modalities are unchanged. The maximum annual amount is not guaranteed: distributions depend on the SNB’s annual net profit and its ability to make payments while meeting its financial and monetary-policy requirements.
The maximum consists of a CHF 2 billion base distribution, available if the SNB records at least CHF 2 billion in net profit. Four possible supplementary payments of CHF 1 billion each are tied to net profit thresholds of CHF 10 billion, CHF 20 billion, CHF 30 billion and CHF 40 billion. The thresholds determine how much may be distributed under the agreement; they do not mean the full CHF 6 billion will be paid every year.
The SNB also said that, from the 2026 financial year, it plans to reduce its minimum allocation to provisions from 10% to 8% of its annual result. That change is subject to annual approval by the Bank Council. Under the National Bank Act, the SNB must set aside provisions to maintain currency reserves at a level it considers necessary for monetary policy. The remaining profit is, in principle, available for distribution.
How the CHF 6 Billion Formula Works
The agreement gives the Confederation and cantons a framework for potential SNB revenue over several years, while preserving the condition that the bank’s finances must support a payment. The SNB says multi-year agreements are intended to smooth distributions over the medium term, rather than set each year’s payment solely through a new arrangement.
For public budgets, the headline maximum is substantial, but it should not be treated as a dependable annual transfer. The formula links supplementary distributions to sharply higher profit thresholds, and the SNB’s results can vary. The agreement therefore defines the possible scale and trigger points for transfers, not a fixed commitment to pay CHF 6 billion each year.
The lower minimum provision allocation may affect how much of the annual result remains available for distribution, but it does not by itself establish that future payments will rise. The change is conditional on Bank Council approval each year, and the SNB must continue to provide for currency reserves in line with its monetary-policy responsibilities.
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The Previous Agreement Ends in 2025
The new terms follow the agreement established in 2021 for the 2020–2025 financial years. The October 1 announcement says the latest agreement applies starting with the 2026 financial year and runs through the 2030 financial year. The FDF and SNB say the underlying distribution modalities remain unchanged.
Profit distributions are made to the Confederation and cantons after the SNB has allocated funds to provisions. The SNB’s stated legal duty to maintain adequate currency reserves means distribution capacity is linked not only to reported profit but also to its financial position and reserve requirements. The agreement sets out the main terms across multiple years; it does not remove those conditions.
The SNB said the cantons were informed in advance. It also made the agreement and accompanying notes available on its website. The announcement does not provide a forecast of SNB profits or specify the size of any distribution for a particular year.
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Annual Payments Depend on SNB Results
The announcement does not say how much the SNB will distribute for the 2026 financial year, or provide profit forecasts for any year covered by the agreement. Actual payments will depend on the bank’s net profit, whether the relevant thresholds are reached, its financial position and provision allocations.
It is also not yet clear how often the Bank Council will approve the planned 8% minimum provision allocation in practice. The SNB says approval is required annually, so the stated reduction is not an unconditional rule for every year through 2030. The agreement sets the distribution framework, but the available announcement does not detail the outcome of future annual approvals.
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Annual Approvals and Profit Reports
The agreement applies from the 2026 financial year, and subsequent SNB annual results will show whether the profit thresholds permit a distribution and how much is available. The Bank Council’s annual decisions on provision allocations will also affect the amount remaining for distribution.
The SNB has published the agreement and associated notes for further detail. No additional payment date, forecast or scheduled review was specified in the October 1 announcement. The next practical milestones are the bank’s reporting of annual results and its decisions on provisions and distributions for each financial year.
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Key Questions
What did the FDF and SNB agree?
They signed a multi-year agreement governing SNB profit distributions to the Confederation and cantons for the 2026–2030 financial years. The SNB says the distribution modalities remain unchanged.
Will Switzerland receive CHF 6 billion every year?
No. CHF 6 billion is the maximum annual distribution, and payment depends on the SNB’s financial position and net profit. The agreement does not guarantee that maximum in any year.
How is the maximum distribution calculated?
A CHF 2 billion base amount is available if net profit is at least CHF 2 billion. Four additional CHF 1 billion payments are tied to net profit thresholds of CHF 10 billion, CHF 20 billion, CHF 30 billion and CHF 40 billion.
What changes to SNB provisions were announced?
From the 2026 financial year, the SNB plans to reduce its minimum allocation to provisions from 10% to 8%. The Bank Council must approve the allocation each year, and the SNB remains responsible for maintaining currency reserves needed for monetary policy.
When did the previous agreement apply?
The agreement signed in 2021 covered the 2020–2025 financial years. The new arrangement replaces it from the 2026 financial year and runs through 2030.
Source: primary
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