(Bloomberg) -- UBS Group AG is set to miss out on $135 million in revenue after the Swiss National Bank decided to cut how much it pays for the money that banks are required to hold with it, according to KBW estimates.

The hit will occur next year once the SNB decision kicks in, KBW analysts led by Thomas Hallett said in a note on Thursday. The projected revenue loss would just be a small fraction of the lender’s total net interest income, which analysts expect to reach $8.5 billion next year. 

The SNB said on Monday it will stop paying lenders for the money they are required to keep at the institution as a minimum reserve, and it will also lower the level of bank deposits on which it pays its full policy rate. The moves will enable the institution to cut interest payments by about 621 million Swiss francs ($687 million) per year, according to Bank J Safra Sarasin Ltd. Chief Economist Karsten Junius.

The central bank reported a record loss for last year, forcing it to skip its annual payout to the Swiss federal government and cantons for only the second time in its history. That dividend pause will likely be repeated for 2023, according to UBS economists.

UBS is scheduled to report third-quarter earnings next Tuesday. 

--With assistance from Macarena Muñoz.

(Updates with earnings date in fifth paragraph. A previous version of this story corrected the spelling of analyst’s name.)

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