by In good years the Swiss National Bank (SNB) distributes a portion of its profits to a number cantonal tax authorities, boosting their income. However, there will likely be no payments in 2023, reported the newspaper 20 Minutes. © Santiaga | Dreamstime.comWhen the SNB was trying to moderate the rise of the franc it bought large quantities of assets denominated in foreign currencies. In a rising market, these assets gained in value, producing profits. However, more recently, these assets have lost significant value, leading to losses. Over the first 9 months of 2022 the SNB generated a loss of CHF 140 billion. On 31 December 2022, Thomas Jordan, the bank’s president, said there was little hope the remaining three months of 2022 would change the situation. In 2021, the SNB paid
Topics:
Investec considers the following as important: Business & Economy, Editor's Choice, Personal finance, Swiss National Bank
This could be interesting, too:
Investec writes Federal Council hopes to boost savings with pension change
Investec writes Switzerland’s cross border workers reach record level
Investec writes Swiss National Bank to issue new money
Investec writes End of lifelong widows’ pensions moves closer to reality
In good years the Swiss National Bank (SNB) distributes a portion of its profits to a number cantonal tax authorities, boosting their income. However, there will likely be no payments in 2023, reported the newspaper 20 Minutes.
When the SNB was trying to moderate the rise of the franc it bought large quantities of assets denominated in foreign currencies. In a rising market, these assets gained in value, producing profits. However, more recently, these assets have lost significant value, leading to losses. Over the first 9 months of 2022 the SNB generated a loss of CHF 140 billion. On 31 December 2022, Thomas Jordan, the bank’s president, said there was little hope the remaining three months of 2022 would change the situation.
In 2021, the SNB paid dividends of CHF 6 billion, CHF 2 billion to the federal government and CHF 4 billion to the cantons.
According to one source most cantons had been expecting a dividend from the SNB in 2023. Only Fribourg, Zug, Appenzell Ausserrhoden and Schaffhausen had not included a dividend in their budgets.
The SNB will publish preliminary financials for 2022 on 9 January 2023.
More on this:
20 Minutes article (in French) – Take a 5 minute French test now
For more stories like this on Switzerland follow us on Facebook and Twitter.