The Swiss National Bank (SNB) has reported a profit of CHF5.7bn (€5.2bn), largely as a result of valuation gains in its gold holdings and foreign currency positions.
The news comes following a year of challenges for the SNB, which posted a CHF23.3bn (€21.2bn) loss last year.
According to the SNB, A valuation gain of CHF 4.1bn (€3.7bn) was recorded on gold holdings, which in volume terms remained unchained.
Meanwhile, profits on foreign currency positions amounted to CHF1.2bn (€1bn).
The introduction of negative deposit rates also had a marginally positive effect on the central bank balance sheet. The profit on CHF positions, which totalled CHF 439m (€400m), comprised CHF333m (€303m) of negative interest charged on sight deposit account balances since 22 January 2015.
The report also highlights that the appreciation of the Swiss franc continued to represent a challenge, it resulted in total exchange rate losses of CHF6.9bn (€6.29bn).
Movements in bond prices differed from those in share prices. The generally lower interest rate level resulted in price gains of CHF6.2bn (€5.6bn) on interest-bearing paper and instruments. By contrast, a loss of CHF0.7bn (€0.6bn) was recorded on equity securities and instruments.