Schweizerische Nationalbank : Preface (annrep 2024 vorwortn)

Preface

Ladies and Gentlemen

It is our pleasure to present the Swiss National Bank's Annual Report for 2024. The first part comprises the accountability report submitted by the Governing Board to the Federal Assembly, and sets out how the SNB has fulfilled its tasks pursuant to art. 5 of the National Bank Act during

the past year. The second part consists of the financial report, which provides information on organisational and operational developments as well as the financial result of the SNB. The financial report is submitted for approval first to the Federal Council and then to the General Meeting of Shareholders.

In 2024, the SNB initiated a change in the course of its monetary policy. Inflation in Switzerland had already fallen back below 2% in 2023 and was thus within the range consistent with price stability, and it decreased further in the year under review. Inflationary pressure also declined considerably, which was attributable in particular to the SNB's previous tightening of monetary policy, the appreciation of the Swiss franc since 2023 and moderate growth in the global economy. The SNB eased its monetary policy by lowering its policy rate in four steps from 1.75% to 0.5%, starting in March 2024. The SNB also remained willing to be active in the foreign exchange market as necessary.

Economic activity in Switzerland was subdued, mainly due to only moderate demand from abroad. The labour market lost momentum, which was reflected in weaker growth in employment and rising unemployment.

As part of a pilot project, the SNB is providing central bank digital currency for financial institutions (wholesale CBDC) in Swiss francs on the regulated platform of SIX Digital Exchange. In the year under review, it decided to continue this pilot until at least June 2026.

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Furthermore, the SNB announced that it would be developing a new banknote series. The theme is 'Switzerland and its altitudes', paying homage to the country's unique topography. The banknotes issued by the SNB meet high standards in terms of security, functionality and graphic design. The new series is aimed at ensuring that this remains the case in future. The new banknotes will be issued at the beginning of the 2030s, at the earliest.

In 2024, the SNB again addressed the lessons learnt from the crisis at Credit Suisse. It shares the assessment presented in the Federal Council's report on banking stability that action is needed to remedy the weaknesses in banking regulation exposed by the crisis at Credit Suisse. The need for action identified by the Federal Council relates in particular to the areas of capital and liquidity regulation, early intervention, recovery planning (stabilisation) as well as resolution planning (restructuring or liquidation of banks in the event of a crisis). The SNB participated at both national and international level in the discussions about the regulatory adjustments required.

In this context, the SNB welcomes the report of the Parliamentary Investigation Committee (PInC) to the chambers of parliament, which was published in December 2024. The PInC was set up by the chambers of parliament in the aftermath of the crisis at Credit Suisse in order to examine the role and conduct of the competent federal authorities in managing the crisis.

The SNB's 2024 annual financial statements closed with a CHF 80.7 billion profit, following a loss of CHF 3.2 billion in 2023. The SNB set the allocation to the provisions for currency reserves at CHF 11.6 billion. After taking into account the negative distribution reserve of CHF 53.2 billion, the net profit comes to CHF 15.9 billion. This allows a dividend payment of the legally stipulated maximum amount of CHF 15 per share. In accordance with the profit distribution agreement signed in January 2021 by the Federal Department of Finance and the SNB for the 2020 - 2025 period, a total of CHF 3 billion will be distributed to the Confederation and the cantons for 2024.

• Annual Report 2024, Preface

We would like to thank our employees for their hard work and valuable support, which we were again able to count on in the past year.

Berne and Zurich, 28 February 2025

barbara janom steiner	martin schlegel
President of the Bank Council	Chairman of the Governing Board

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