new distribution reserve. this is how we implement both statutory requirements, namely the precedence of building provisions over making distributions, and the smoothing of distribution payments. new agreement on the snb ’ s distribution of profits this brings me to the new profit distribution agreement concluded between the federal department of finance ( fdf ) and the snb at the beginning of this year. the new agreement governs the amount of the annual distributions to the confederation and cantons for the financial years 2020 to 2025. it is based on the tried - and - tested principles of the previous agreements, while also taking into account the more recent developments. this new agreement takes into account not only the marked expansion of the snb ’ s balance sheet and the associated increase in earnings potential, but also the pronounced growth in the distribution reserve stemming from the extraordinary investment results in recent years ( slide page 5 / 7 5 ). these two developments have made it possible to increase the maximum annual distribution, and to already apply this to the 2020 financial year. the maximum annual distribution is now chf 6 billion, instead of chf 2 billion and chf 4 billion under the previous agreements. 2 the actual amount of the distribution depends on whether the net profit exceeds certain thresholds ( slide 6 ). for the maximum distribution of chf 6 billion to be made, the net profit must be chf 40 billion or higher. setting a maximum distribution of chf 6 billion per year is based on carefully considered earnings forecasts. these take into account the lower yields expected in the coming years. bonds make up about 80 % of our foreign currency investments, and most of them are government bonds. at present, around 50 % of the bonds we hold have a negative yield to maturity in local currency terms ( slide 7 ). given that, owing to structural reasons, the general level of interest rates is substantially lower than in the past, the vast majority of our investments can therefore be expected to deliver only a very modest return going forward. the development of share prices and exchange rates will therefore be determining factors with regard to the profits in the coming years. given that these are by their nature subject to marked fluctuations, predicting the medium - term return on our assets is fraught with particularly high uncertainty. the approach set out in the new profit distribution agreement addresses this issue. should the high earnings of recent years prove to be sustainable, the confederation and the cantons will participate in them. however, should the net profits quickly dwindle, there will

meeting of shareholders | thomas j. jordan | © swiss national bank slide 3 30. 04. 2021 snb general meeting of shareholders | thomas j. jordan | © swiss national bank source ( s ) : snb slide 4 30. 04. 2021 snb general meeting of shareholders | thomas j. jordan | © swiss national bank slide 5 30. 04. 2021 snb general meeting of shareholders | thomas j. jordan | © swiss national bank slide 6 in chf billions distribution : chf 6 billion 30. 04. 2021 snb general meeting of shareholders | thomas j. jordan | © swiss national bank chf 5 billion chf 4 billion chf 3 billion max. chf 2 billion source ( s ) : snb net netprofit profit slide 7 30. 04. 2021 snb general meeting of shareholders | thomas j. jordan | © swiss national bank many thanks for your attention! © swiss national bank