SNB limits loss to CHF33.9 billion

The SNB’s financial results depend largely on gold, foreign exchange and capital markets Keystone

The Swiss National Bank (SNB) has reported a loss of CHF33.9 billion ($34.3 billion) for the first three quarters of 2015. This would have been worse without a CHF16.2 billion profit on foreign currency positions in the third quarter. 

The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. 

On January 15, the SNB scrapped the minimum exchange rate of CHF1.20 per euro. The subsequent appreciation of the Swiss franc led to exchange rate-related losses on all investment currencies. For the first three quarters of 2015, these totalled CHF31.4 billion. 

Interest income provided a positive contribution, at CHF5.7 billion, as did dividend income, at CHF1.7 billion. A loss of CHF2.8 billion was recorded on interest-bearing paper and instruments. 

“Furthermore, the unfavourable stock market environment led to a loss of CHF4.4 billion on equity securities and instruments,” the SNB said in a statement on Friday. 

A valuation loss of CHF3.3 billion was registered on the gold holdings, whose quantity remained unchanged. Gold was trading at CHF34,942 per kilogram at the end of September (down from CHF38,105 at the end of September 2014). 

The profit on Swiss franc positions totalled CHF931 million. It was essentially made up of CHF843 million of negative interest charged on sight deposit account balances since January 22, as well as price gains of CHF45 million and interest income of CHF50 million on Swiss franc securities.