The Swiss National Bank reports a profit of CHF 33.7 billion for the first three quarters of 2017
OREANDA-NEWS. The Swiss National Bank (SNB) reports a profit of CHF 33.7 billion for the first three quarters of 2017.
A valuation gain of CHF 2.3 billion was recorded on gold holdings. The profit on foreign currency positions amounted to CHF 30.3 billion, and the profit on Swiss franc positions to CHF 1.5 billion. The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. Strong fluctuations are therefore to be expected, and only provisional conclusions are possible as regards the annual result.
Profit on foreign currency positions
The net result on foreign currency positions amounted to CHF 30.3 billion. Interest income accounted for CHF 6.8 billion and dividends for CHF 2.5 billion. Movements in bond prices differed from those in share prices. A loss of CHF 4.0 billion was recorded on interest-bearing paper and instruments. By contrast, equity securities and instruments benefited from the favourable stock market environment and contributed CHF 14.4 billion to the net result. Overall, exchange rate-related gains amounted to CHF 10.5 billion.
Valuation gain on gold holdings
A valuation gain of CHF 2.3 billion was achieved on gold holdings, which remained unchanged in volume terms. Gold was trading at CHF 40,071 per kilogram at end-September 2017 (end-2016: CHF 37,885).
Profit on Swiss franc positions
The net result on Swiss franc positions totalled CHF 1.5 billion overall, which essentially resulted from negative interest charged on sight deposit account balances.
Provisions for currency reserves
As at end-September 2017, the SNB recorded a profit of CHF 33.7 billion, before the allocation to the provisions for currency reserves. In accordance with art. 30 para. 1 of the National Bank Act, the SNB is required to set aside provisions permitting it to maintain the currency reserves at the level necessary for monetary policy. The allocation for 2017 will be determined at the end of the year.