Swiss National Bank almost doubles its profit

The Swiss National Bank has reported that it almost doubled its profit last year to reach SFr4.4 billion (1998 - SFr2.4 billion), largely thanks to currency gains against the Swiss franc.

The Swiss National Bank has reported that it almost doubled its profit last year to reach SFr4.4 billion (1998 – SFr2.4 billion), largely thanks to currency gains against the Swiss franc.

Commenting on last year’s performance, the National Bank said that the US dollar had jumped in value from SFr1.3772 at the end of 1998 to SFr1.5980 at the end of last year and this had played a major contribution to filling the coffers.

Currency exchange rates accounted for a profit of SFr4.1 billion last year, with all major currencies hardening against the franc, except the euro.

A weaker US dollar in 1998 had the opposite effect, with exchange rates accounting for a book loss of SFr900 million.

As expected, the National Bank is to pay out SFr1.5 billion to the Confederation and the cantons. This will be paid out after the accounts of the National Bank are approved by the general assembly at the end of April.

The remaining SFr2.9 billion will be transferred to reserves for market, credit and liquidity risks, which will then reach a record SFr37.6 billion.

From staff and wire reports.