Swiss National Bank faces 2b franc loss in Q2 ’24

The Swiss National Bank (SNB) reported a 2 billion Swiss franc ($2.27 billion) loss for the second quarter, shifting from a profit of 58.8 billion francs in the first quarter.

The loss was attributed to the Swiss franc’s appreciation, which eroded gains from foreign currency investments.

Despite gains of 3.26 billion francs from its gold holdings, the SNB faced a 3.10 billion franc loss on its foreign currency positions due to the franc’s rise and falling bond prices.

Additionally, the SNB incurred a 2.06 billion franc loss on Swiss franc positions, primarily due to interest payments on sight deposits.

The central bank emphasised that its financial results are influenced by fluctuations in gold, foreign exchange, and capital markets and that making a profit is not its primary mandate.

UBS economist Florian Germanier noted that the franc’s continued strength could impact the SNB’s results in the future.

Attribution: Reuters