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Switzerland’s Federal Department of Finance and Swiss National Bank have signed a profit distribution agreement covering the 2026–2030 financial years. The existing framework remains in place: up to CHF 6 billion a year may go to the Confederation and cantons, if the SNB’s financial situation permits. The SNB also plans to reduce its minimum annual allocation to provisions from 10% to 8%, subject to annual Bank Council approval.
Switzerland’s Federal Department of Finance (FDF) and the Swiss National Bank (SNB) have signed a new agreement covering distributions of central bank profits to the Confederation and cantons for the 2026–2030 financial years. The modalities remain unchanged, and up to CHF 6 billion per year may be distributed when the SNB’s financial situation permits.
The agreement, announced by the SNB on October 1, replaces the arrangement signed in 2021, which covered financial years 2020 through 2025. The new terms apply from the 2026 financial year and set the framework through 2030. The SNB said the distribution structure is unchanged.
Under that structure, a base distribution of CHF 2 billion is made if the SNB records a net profit of at least CHF 2 billion. Up to four additional payments of CHF 1 billion each are possible, tied to net-profit thresholds of CHF 10 billion, CHF 20 billion, CHF 30 billion and CHF 40 billion. The maximum annual distribution is therefore CHF 6 billion, but it is not guaranteed: the agreement makes payment conditional on the SNB’s financial situation permitting it.
The SNB also said it will lower its minimum allocation to provisions from 10% to 8% starting with the 2026 financial year. The change is subject to annual approval by the Bank Council. Under the National Bank Act, the SNB must set aside provisions from its annual result to maintain currency reserves at a level considered necessary for monetary policy. Profit remaining after that allocation is, in principle, available for distribution.
How the Agreement Shapes Public Payments
The agreement sets a multi-year framework for payments to Switzerland’s federal and cantonal governments, giving both levels of government a defined basis for planning around possible SNB distributions. Those payments can be substantial, but the agreement does not promise a fixed annual amount. Distributions depend on the bank’s net profit, the specified thresholds and whether its financial position allows payment.
The unchanged thresholds also mean that the maximum amount is reached only at very high levels of annual net profit: the full CHF 6 billion requires net profit of at least CHF 40 billion. Lower profits may result in a smaller payment or, depending on the result and financial circumstances, no distribution under the stated structure. The agreement therefore establishes a formula rather than a guaranteed stream of revenue.
The provisions adjustment is a separate element of the announcement. A lower minimum allocation could leave a larger share of annual results available after provisions, but it does not by itself guarantee higher payments. Annual Bank Council approval is required, and the SNB’s overall financial situation remains a condition for distributions.
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From the 2021 Deal to 2030
The FDF and SNB use agreements spanning several years to set the main terms for profit distributions and help smooth payment flows over the medium term. The prior agreement covered the 2020–2025 financial years; the new one carries the framework forward from 2026 to 2030. The SNB said the cantons were informed in advance.
The agreement operates alongside the SNB’s legal responsibility to maintain adequate currency reserves for monetary policy. The central bank allocates part of its result to provisions for that purpose before determining what profit is, in principle, available to distribute. The SNB said its equity position had improved in recent years and linked that development to the planned reduction in the minimum provisions allocation. The release does not provide figures for that improvement.
The SNB has published the agreement and accompanying notes on its website. The source announcement describes the distribution terms and provisions change but does not provide a forecast of future SNB profits or of the amount that governments will receive in any particular year.
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Annual Profits Still Determine Payments
The agreement does not establish how much the Confederation and cantons will receive in any given year. The actual payment depends on the SNB’s annual net profit, the applicable thresholds and whether its financial situation permits a distribution. The press release offers no forecast for profits in 2026 or later years.
It is also not clear from the announcement how much the planned reduction in the minimum provisions allocation will affect the distributable result in individual years. The change requires annual Bank Council approval, and the release does not provide further detail about how that approval will be assessed. The agreement sets out a framework; it does not settle these year-by-year outcomes.
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Annual Reviews Will Set Outcomes
The agreement applies from the 2026 financial year and remains in force through 2030. For each year, the SNB’s financial result and provisions allocation will determine whether a distribution is available and which profit thresholds have been met. The planned 8% minimum allocation also remains subject to annual Bank Council approval.
The next concrete information will come through the SNB’s annual financial results and its decisions on provisions and distributions. Those disclosures will show whether the conditions for a payment have been met and how much, if anything, is allocated to the Confederation and cantons. The signed agreement and related notes are available from the SNB.
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Key Questions
Who signed the new agreement?
The Federal Department of Finance and the Swiss National Bank signed the agreement on profit distributions.
How long does the agreement cover?
It applies from the 2026 financial year through 2030, replacing the agreement that covered 2020–2025.
Will the SNB pay CHF 6 billion every year?
No. CHF 6 billion is the maximum annual distribution, and payment is conditional on the SNB’s financial situation permitting it. The amount also depends on annual net profit and the thresholds in the agreement.
How are distribution amounts calculated?
A CHF 2 billion base distribution applies if net profit is at least CHF 2 billion. Four possible supplementary payments of CHF 1 billion each are linked to net-profit thresholds of CHF 10 billion, CHF 20 billion, CHF 30 billion and CHF 40 billion.
What is changing about SNB provisions?
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 annually, and the change does not guarantee a larger distribution.
Source: primary
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