The SNB is expected to have corrected its course by the second interim report
Keystone-SDA
The Swiss National Bank (SNB) is set to return to profit in the second quarter, according to economists at UBS. Following a loss of half a billion francs in the first quarter, the central bank is expected to post a profit of between CHF19 billion and 24 billion in the second quarter.
The expected recovery hinges on the performance of the SNB’s equity portfolio, for which UBS analysts Alessandro Bee and Florian Germanier anticipate an increase of around CHF30 billion, or 14%. However, the fall of more than 10% in the price of gold over the period will have reduced the value of the massive stockpile of gold by CHF15 billion.
The debt securities portfolio, for its part, has followed a more erratic trajectory, ranging from high yields in the United States to falling interest rates in France and Germany, resulting in a broadly balanced outcome.
In particular, the Swiss franc’s depreciation against the dollar generated foreign exchange gains of around CHF3 billion. Interest income and dividends, for their part, made a positive contribution to the results of CHF4 billion.
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Translated from French, reviewed by an English Department journalist.
