SNB reports strong first half of 2019
The Swiss National Bank (SNB) reported a profit of CHF 38.5bn for the first half of 2019.
The profit on foreign currency positions amounted to CHF 33.8bn. A valuation gain of CHF 3.8bn 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.
Interest and dividend income totalled CHF 4.7bn and CHF 2.1bn respectively. A gain of CHF 14.2bn was recorded on interest-bearing paper and instruments.
Furthermore, the favourable stock market environment led to a gain of CHF 20.8bn on equity securities and instruments. Exchange rate-related losses totalled CHF 8.0bn.
The profit on Swiss franc positions totalled CHF 1.1bn. It largely resulted from negative interest charged on sight deposit account balances.
As at the end of June 2019, the SNB recorded a profit of CHF 38.5bn before 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 the current financial year is determined at the end of the year.
