Interim results and balance sheet of the Swiss National Bank

In addition to the rise in valuation gains on gold holdings, the higher net income from foreign currency investments also had a positive impact on the result.

Further increase in the price of gold… The net result from gold is CHF 3.7 billion (CHF 3.2 billion) and mostly consists of valuation gains. In September alone, the price per kilogram shot up by 7% to CHF 27,939. Some of the valuation gains were realised through the sale of 113 tonnes of gold before the end of September. The sales were effected in the context of adjustments in the composition of currency reserves announced in June. Before the end of September 2009, a total of 250 tonnes of gold will be sold and the corresponding proceeds invested in foreign currency reserves.

… and higher return on foreign currency investments The net result from foreign currency investments amounts to CHF 1.6 billion (CHF 0.6 billion). At CHF 1.3 billion (CHF 1.2 billion), interest income on fixed-income securities was the most significant component; by contrast, at CHF -161 million, investment income was slightly in negative territory (CHF -576 million). Equity exposures, which account for roughly twelve percent of the National Bank's foreign currency investments, resulted in a net result of CHF 288 million (CHF 289 million). The exchange rate gain amounted to CHF 189 million (loss of CHF 339 million).

The net result from Swiss franc investments came to CHF 288 million (CHF 147 million), an outcome that was attributable to higher interest income from repo transactions in particular.

Interim results and distributable profit Together with other income and expenses, the interim result came to CHF 5.40 billion (CHF 3.79 billion) before the legally prescribed increase in provisions. In accordance with art. 30 para. 1 of the National Bank Act (NBA), the National Bank is required to set aside provisions permitting it to maintain the currency reserves at the level necessary for monetary policy. These provisions are increased in step with the growth in nominal gross domestic product. Based on this assessment method, the allocation to provisions totals CHF 751 million for the year as a whole, or CHF 563 million for the first nine months. After this allocation, the amount of the contribution to the distributable profit is CHF 4.84 billion (CHF 3.12 billion).

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