Finance

The total contribution from the federal government provides the basis for a sustainable funding policy. — ETH Zurich generates between five and six francs for every Swiss franc received. Adequate funding from the federal government is a prerequisite for maintaining the quality of teaching, research and knowledge transfer. (image: ETH Zurich / AI generated)

Successful thanks to reliable funding

Stable and reliable funding from the Swiss federal government is essential to ETH Zurich’s ability to fulfil its basic mandate and to develop strategically. It is only thanks to financial planning certainty that ETH is able to perform its diverse functions as a national university and compete at the international level. Such planning certainty enables it to maintain both its strategic and financial freedom and its autonomy in teaching and research. This strengthens Switzerland as a research and development location and makes ETH one of the world’s best and most competitive universities.

Enlarged view: Composition of total revenue in CHF millions, consolidated (in accordance with IPSASs). Main three categories: 1,192 total revenues, 1,365 federal financial contribution, 626 third-party funding revenue incl. surplus / deficit from associated entities — ETH Zurich generated total revenue of CHF 1,992 million, including a federal financial contribution of CHF 1,365 million. The remaining CHF 626 million comprises third-party funds (including the surplus from associated entities). The sum of the figures displayed may not match exactly due to rounding effects at the various levels. (image: ETH Zurich / null-oder-eins)

In the reporting period, ETH Zurich generated a consolidated surplus of 50 million Swiss francs (previous year: -73 million Swiss francs). Despite this positive result, liquidity has been steadily declining since 2020, as the free cash flow has always been negative over this period. This means ETH Zurich is unable to cover all the liquidity required for investments and operations from the federal financial contributions and third-party funding. This is partly due to the fact that the total federal contribution from the government does not cover the rate of inflation, nor does it take into account the disproportionate rise in student numbers.

Enlarged view: Change in free cash flow in CHF millions. two thousand and nineteen: fourteen; two thousand and twenty: minus nineteen; two thousand and twenty-one: minus ninety-one; two thousand and twenty-two: minus forty-six; two thousand and twenty three: minus thirty-nine — Free cash flow is an important figure in liquidity planning and quantifies the total funding freely available to an institution within a period, after all expenses. (image: ETH Zurich / null-oder-eins)

ETH Zurich’s reserves have also declined by almost 50 percent since 2018. The university now has just 54 million Swiss francs of reserves without dedication that can be used to cover special events. The reserves with internal dedication, totalling CHF 329 million, correspond to internal obligations that generally cannot be used for other purposes without contractual adjustments.

The negative free cash flow and the low reserves mean the only way for ETH Zurich to compensate for the cuts in basic funding planned by the federal government for 2025 is by prioritising and reducing services accordingly.

Enlarged view: Change in ETH Zurich's reserves in CHF millions broken down into without dedication and with internal dedication.

Several students walking past the ETH main building. Link goes to news article: We are on course with our cost saving measures. — ETH is helping to restructure the federal budget by managing funds responsibly and prioritising projects. This is a challenge, however, given the growth in student numbers combined with a smaller increase in funds. (image: ETH Zurich)

ETH Zurich seeking third-party funding

The support received in the form of private donations and bequests, and from foundations and businesses allows the rapid rollout of strategic projects and injects fresh momentum into the development of teaching and research with a focus on specific subject areas. In establishing the ETH Zurich Foundation in 2003, ETH created a vehicle dedicated to raising third-party funding.

Enlarged view: A doctor examining a child. — The research conducted by the BRCCH benefits the healthcare provided to children around the globe. (image: Adobe Stock)

Investment in more research to benefit the health of young people

In 2019, a donation from Fondation Botnar in Basel enabled the establishment of the Botnar Research Centre for Child Health (BRCCH), which works to promote the health of young people. In 2023, Fondation Botnar donated a further 50 million Swiss francs for the Centre’s expansion. The University of Basel, ETH Zurich, the University Children’s Hospital Basel and the Swiss Tropical and Public Health Institute are partner institutions of the BRCCH, which boasts over 400 participating researchers and around 29 multidisciplinary and inter-institutional projects.

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Transparency for stakeholders

ETH Zurich’s transparent financial reporting in accordance with International Public Sector Accounting Standards (IPSASs) sends a strong signal of credibility, reliability and comparability, thereby fostering stakeholder trust.

In the reporting period, ETH generated a consolidated surplus of 50 million Swiss francs. The consolidated operating result came to 14 million Swiss francs. Consolidated equity fell by 53 million Swiss francs to 1,793 million Swiss francs. One of the strategic objectives set by the Federal Council for the ETH Domain for the years 2021 to 2024 is to actively manage the reserves and reduce them by 10 percent based on other equity as at 31 December 2019. Measured by other equity, reserves had been reduced by 14 percent as at 31 December 2023.

Consolidated financial statements and financial statements in brief

Download Download Consolidated financial statements and financial statements in brief (PDF, 1.1 MB)

Steady growth in the federal contribution essential

ETH Zurich is granted the federal financial contribution in the form of a global budget. Steady growth in the global budget remains essential for sustainable funding.

In 2023, the federal financial contribution granted to ETH Zurich (global budget) amounted to 1,373 million Swiss francs. The global budget is used to cover basic teaching and research equipment (expenditure credit) and to fund investments in the properties used by ETH Zurich (investment credit), most of which are owned by the federal government.

Sources and use of funds

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Donations enable excellence

Many companies, foundations, private individuals and alumni are keen to support education and research in partnership with ETH Zurich. In doing so, they make an important contribution to Switzerland’s status in science and business, and to its international competitiveness. On behalf of its researchers and students, ETH Zurich and the ETH Foundation would like to thank all donors and supporters for their generous contributions and for their trust.

List of donors

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_{The Annual Report is produced in German and translated into English. Only the German version is binding.
© ETH Zurich, April 2024}