A Swiss National Bank (SNB) payout to the Swiss government and cantons for 2024 is looking less likely after losses in the second quarter halved the central bank’s early-year profits.
This content was published on
2 minutes
Bloomberg
The SNB reported a half-year profit of CHF13.7 billion ($15.7 billion), according to a statement Monday, down from a gain of CHF26.9 billion in the three months through March.
Switzerland’s central bank earned CHF16.2 billion from its large foreign-currency holdings as the appreciation of the franc weighed on the global rally in equity markets. It also saw a CHF1.2 billion profit on its gold holdings.
While SNB’s portfolio did well with profits of CHF2.8 billion on bonds and CHF26.2 billion on equities, the profit on foreign-currency positions was reduced by exchange-rate losses of CHF19.6 billion.
Results still beat a forecast by UBS economists Alessandro Bee and Florian Germanier, who had predicted a first-half profit between CHF2 and 12 billion.
They estimate that the institution needs to earn between CHF45 billion and CHF50 billion this year so it can resume paying a dividend for 2024. A payout for this year is already out of the question, according to the economists.
Last year, the SNB saw the worst loss in its history with a shortfall of CHF132.5 billion, forcing it to omit the regular payment to shareholders, the Swiss government and cantons for only the second time since the institution was founded in 1906.
The central bank’s results are heavily influenced by developments in markets, so quarterly results are primarily a snapshot.
Earnings from SNB’s operations don’t influence monetary policy. Third-quarter results are due on October 31.
Swiss foreign minister backs Berset at Council of Europe
This content was published on
Cassis described Berset as the "ideal candidate" to help the Council realise its aim of ensuring security and peace in Europe.
Gay conversion therapy banned in Swiss canton of Valais
This content was published on
On Thursday, the canton approved a new Health Act which includes a ban on therapies aimed at changing sexual orientation or gender identity.
This content was published on
Some aspects of pro-Palestine sit-ins have gone too far, but the right to protest and debate must be upheld, the student association has said.
Swiss LGTBIQ helpline: attacks more than doubled in 2023
This content was published on
Three organisations jointly operating a helpline have called for more awareness, action and funding to address discrimination.
This content was published on
Switzerland's economy grew slightly at the start of 2024, with growth in the service sector contrasting with weak growth in industry.
Swiss employment rate rises in first quarter of 2024
This content was published on
The number of women and foreign nationals in employment increased particularly strongly, the Federal Statistical Office said on Thursday.
Swiss inflation for June drops within central bank comfort zone
This content was published on
The price of goods in Switzerland increased 1.7% in June compared to the same month last year, but the annual inflation rate is still forecast at 2.2%.
Swiss National Bank wants more resilience after Credit Suisse crash
This content was published on
The Swiss National Bank (SNB) says it is crucial to draw lessons and take measures from the Credit Suisse crisis that led to the bank's downfall.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.