SNB reports negative interim results

Ridhima Sharma
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As at end-September 2018, the Swiss National Bank (SNB) recorded a loss of CHF7.8bn before allocation to the provisions for currency reserves.

A valuation loss of CHF3.7bn was recorded on gold holdings, which remained unchanged in volume terms. Gold was trading at CHF37,274 per kilogram at end-September 2018 (end-2017: CHF40,859). The loss on foreign currency positions amounted to CHF5.3bn.

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.

There was a divergence between bond and equity valuations. Price losses of CHF8.5bn were recorded on interest-bearing paper and instruments. By contrast, price gains on equity securities and instruments came to CHF8.2bn. Exchange rate-related losses totalled CHF14.8bn.

The net result from Swiss franc positions totalled CHF1.5bn, this largely resulting from negative interest charged on sight deposit account balances.

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