The Swiss National Bank (SNB) is reporting a loss of CHF 50.1 billion for the first half of 2015 

The central bank of Switzwerland has issued a press release to inform for the Interim results

The Swiss National Bank (SNB) is reporting a loss of CHF 50.1 billion for the first half of 2015.

The loss on foreign currency positions amounted to CHF 47.2 billion. A valuation loss of CHF 3.2 billion was recorded on gold holdings.

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.

Loss on foreign currency positions

The negative result on foreign currency positions amounted to CHF 47.2 billion in total.

On 15 January 2015, the SNB decided to discontinue the minimum exchange rate of CHF 1.20 per euro with immediate effect. The subsequent appreciation of the Swiss franc led to exchange rate-related losses on all investment currencies. For the first half of 2015, these amounted to a total of CHF 52.2 billion.

Interest income provided a positive contribution, at CHF 3.5 billion, as did dividend income, at CHF 1.2 billion. Movements in bond prices differed from those in share prices. A loss of CHF 3.9 billion was recorded on interest-bearing paper and instruments. By contrast, equity securities and instruments benefited from the favourable stock market environment and contributed CHF 4.1 billion to the net result.

Valuation loss on gold holdings

A valuation loss of CHF 3.2 billion was registered on the gold holdings, whose quantity remained unchanged. Gold was trading at CHF 35,022 per kilogram at end-June 2015 (end-2014: CHF 38,105).

Profit on Swiss franc positions

The profit on Swiss franc positions totalled CHF 571 million. It was essentially made up of CHF 530 million of negative interest charged on sight deposit account balances since 22 January 2015, as well as price gains of CHF 12 million and interest income of CHF 34 million on Swiss franc securities.

Provisions for currency reserves
As at end-June 2015, the SNB recorded a loss of CHF 50.1 billion, before the allocation to the provisions for currency reserves.

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 2015 will be determined at the end of the year.

Read the full Results: Swiss National Bank Results 2015

Source: Swiss National Bank – The Swiss National Bank (SNB) is reporting a loss of CHF 50.1 billion for the first half of 2015

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