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Business News/ News / World/  Swiss National Bank earns $16.5 billion profit on gold, currency reserves
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Swiss National Bank earns $16.5 billion profit on gold, currency reserves

Switzerland’s central bank is listed on the stock exchange, and given its huge balance sheet, swings in asset prices have a big impact on its results

The building of the Swiss National Bank is seen in Zurich, Switzerland. (REUTERS)Premium
The building of the Swiss National Bank is seen in Zurich, Switzerland. (REUTERS)

The Swiss National Bank earned a profit of 15.1 billion francs ($16.5 billion) for the first nine months of the year, helped by gains on its foreign currency positions, which includes equities, and gold holdings.

Although it suffered a loss of more than 22 billion francs in exchange-rate related losses, interest and dividend income plus rising stock prices helped to offset that hit, according to a release on Friday.

Switzerland’s central bank is listed on the stock exchange, and given its huge balance sheet, swings in asset prices have a big impact on its results.

These earnings, however, have no bearing on monetary policy. The dividend paid to shareholders is determined by the SNB’s full-year profit.

The SNB, which is using a deposit rate of -0.75% to control the value of the franc, collected 1 billion francs due to the policy.

Separate data on Friday showed the proportion of its foreign exchange reserves invested in equities remained unchanged at 20% in the third quarter, with the rest in highly rated government bonds.

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Published: 31 Oct 2020, 01:20 PM IST
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