SNB posts heavy six-month loss

The Swiss National Bank (SNB) suffered a loss of 95.2 billion francs in the first half of 2022, after a profit of 43.5 billion francs a year earlier. This is more than anticipated by economists at UBS.

Positions in foreign currencies generated a total loss of 97.4 billion francs, the SNB said on Friday. Interest and dividend income amounted to CHF 3.3 billion and CHF 2.3 billion respectively. Interest-bearing securities and interest rate instruments recorded a price loss of 48.7 billion, while it reached 44 billion for equity securities and instruments. As for exchange losses, they totaled 10.3 billion.

The stock of gold, the volume of which has not changed, generated a capital gain of 2.4 billion francs. At the end of June, the price per kilogram of gold stood at 55,836 francs, against 53,548 francs at the end of 2021.

Positions in francs generated a profit of 35.1 million francs. The negative interest levied on sight deposits in particular offset the price losses on interest-bearing securities and interest rate instruments.

The issuing institute recalls that its result ‘depends mainly on developments in the gold, foreign exchange and capital markets. This is why strong fluctuations are the rule, and it is only with difficulty possible to draw deductions therefrom for the result of the current financial year.’

The loss of 95.2 billion francs, before allocation to the provision for currency reserves, is heavier than the projections of UBS, which expected a cumulative loss between 80 and 85 billion. If the total net loss for the 2022 financial year were to reach some 93 billion francs, the Swiss central bank would be forced to give up the repayments it grants to the public authorities, alerted the bank to the three keys.


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