Interim results of the Swiss National Bank as at 31 March 2016
OREANDA-NEWS. The Swiss National Bank (SNB) reports a profit of CHF 5.7 billion for the first quarter of 2016.
A valuation gain of CHF 4.1 billion was recorded on gold holdings. The profit on foreign currency positions amounted to CHF 1.2 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 1.2 billion.
The appreciation of the Swiss franc resulted in total exchange rate losses of CHF 6.9 billion. Interest income amounted to CHF 2.1 billion and dividend income to CHF 0.5 billion, however. Movements in bond prices differed from those in share prices. The generally lower interest rate level resulted in price gains of CHF 6.2 billion on interest-bearing paper and instruments. By contrast, a loss of CHF 0.7 billion was recorded on equity securities and instruments.
Valuation gain on gold holdings
A valuation gain of CHF 4.1 billion was achieved on gold holdings, which in volume terms have remained unchanged. Gold was trading at CHF 38,091 per kilogram at end-March 2016 (end-2015: CHF 34,103).
Profit on Swiss franc positions
The profit on Swiss franc positions, which totalled CHF 439 million, essentially comprised CHF 333 million of negative interest charged on sight deposit account balances since 22 January 2015, price gains of CHF 93 million and interest income of CHF 16 million on Swiss franc securities.
Provisions for currency reserves
As at end-March 2016, the SNB recorded a profit of CHF 5.7 billion, before the allocation to the provisions for currency reserves.
In accordance with art. 30 para. 1 of the National Bank Act (NBA), 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 2016 will be determined at the end of the year.