The Swiss National Bank (SNB) is reporting a consolidated profit of CHF 6.5 billion
July 31, 2012 | by Schweizerische Nationalbank
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July 31, 2012, The net result from the SNB’s foreign currency positions amounted to CHF 5.1 billion for the first half of the year. A valuation gain of CHF 1.3 billion was recorded on the gold holdings, and a net gain of CHF 46 million was achieved on Swiss franc positions. The SNB result depends largely on developments in the gold, foreign exchange and capital markets. Consequently, strong fluctuations are normal, and only provisional conclusions are possible as regards the annual result.
Net gain on foreign currency positions
The net result on foreign currency positions amounts to CHF 5.1 billion for the first half of 2012. The positive result was mainly due to interest and dividend income as well as price increases and capital gains of about CHF 5.5 billion overall. Exchange rate related losses in the first half of the year came to CHF 0.3 billion.
Valuation gain on gold holdings
A valuation gain of CHF 1.3 billion was achieved on the unchanged gold holdings. As at the end of June 2012, gold traded at CHF 48,687 per kilogram.
Net gain on Swiss franc positions
At CHF 74 million, interest income and price gains recorded on Swiss franc securities clearly exceeded the expenses of roughly CHF 25 million for repo transactions and for debt certificates (SNB Bills).
Increase in balance sheet total
Since the beginning of the year, the SNB’s balance sheet has increased by CHF 89 billion to CHF 439 billion. Foreign currency investments alone advanced by CHF 108 billion. A large part of this increase is due to foreign currency purchases made during the second quarter to enforce the minimum exchange rate against the euro.
Stabilisation fund continues to be positive
In the first half of 2012, the SNB loan to the stabilisation fund was further reduced, from CHF 7.6 billion to CHF 6.4 billion, and the overall risk for the SNB decreased from CHF 8.5 billion to CHF 6.7 billion. The stabilisation fund registered a half-yearly profit of USD 189 million, representing a contribution of CHF 73 million to the consolidated result.
Interim result and allocation to provisions
As at end June 2012, the SNB recorded a consolidated profit of CHF 6.5 billion before allocation to the provisions for currency reserves (Q1–Q2 2011: CHF 10.8 billion loss). In accordance with art. 30 para. 1 of the National Bank Act (NBA), the SNB is required to set aside provisions permitting it to maintain the currency reserves at the level necessary for monetary policy. The allocation for the current financial year is determined towards the end of the year.
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Source: Schweizerische Nationalbank , Press release