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From the official news release Interim results of the Swiss National Bank as at 30 September 2016 The Swiss National Bank (SNB) reports a profit of CHF 28.7 billion for the first three quarters of 2016. A valuation gain of CHF 7.5 billion was recorded on gold holdings. The profit on foreign currency positions amounted to CHF 20.3 billion. The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. Strong fluctuations are therefore to be expected, and only provisional conclusions are possible as regards the annual result. The increasing volatility of SNB Results The last formulation gives the impression that the annual results are definite. But the SNB may lose 50 billion in one year and win 60 billion in the next year or the opposite. SNB Results Q1/2016 – Q3/2016 The net result on foreign currency positions amounted to CHF 20.3 billion. Interest Income: Interest income accounted for CHF 6.2 billion dividends for CHF 2.4 billion. Gains on bonds “The generally lower interest rate level resulted in price gains of CHF 10.0 billion on interest-bearing paper and instruments.” Gains on Equities: “Equity securities and instruments benefited from the favourable stock market environment and contributed CHF 5.1 billion to income.
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From the official news release
Interim results of the Swiss National Bank as at 30 September 2016
The Swiss National Bank (SNB) reports a profit of CHF 28.7 billion for the first three quarters of 2016.
A valuation gain of CHF 7.5 billion was recorded on gold holdings. The profit on foreign currency positions amounted to CHF 20.3 billion.
The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. Strong fluctuations are therefore to be expected, and only provisional conclusions are possible as regards the annual result.
The increasing volatility of SNB ResultsThe last formulation gives the impression that the annual results are definite. But the SNB may lose 50 billion in one year and win 60 billion in the next year or the opposite. |
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SNB Results Q1/2016 – Q3/2016The net result on foreign currency positions amounted to CHF 20.3 billion. Interest Income:
Gains on bonds “The generally lower interest rate level resulted in price gains of CHF 10.0 billion on interest-bearing paper and instruments.” Gains on Equities: “Equity securities and instruments benefited from the favourable stock market environment and contributed CHF 5.1 billion to income. Overall, exchange rate-related losses amounted to CHF 3.4 billion.” Gains on Gold: “A valuation gain of CHF 7.5 billion was achieved on gold holdings, which in volume terms have remained unchanged. Gold was trading at CHF 41,275 per kilogram at end-September 2016 (end-2015: CHF 34,103).” |
SNB Results in the first 3 Quarters 2016: +62 billion CHF
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Results Q3 / 2016The following table shows that the result in Q3/2016 was not that good as in the same quarter last year. |
SNB Results Q3/2016: Minus 9 Billion CHF
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SNB Window Dressing at the End of Q3?We supposed that the SNB was window-dressing at the end of Q3, because on September 30, the EUR/CHF improved considerably. This would imply that the results will be worse in Q4, given that the EUR/CHF has fallen to 1.0780 – unless they do window-dressing again. |
EUR/CHF, September 30
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Balance sheet Q3/2016 vs. start of 2016Even if the gold price is rising, its parts of the balance sheets is falling. |
Balance Sheet at September 30 2016
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SNB LiabilitiesSight deposits: The delta namely 51.1 – 5.6 + 2.1 bn. =47.8 bn CHF shows exactly, how much the SNB has intervened. Banknotes in circulation: Nearly unchanged. “Provisions for currency reserves”.Like any provision the central bank can manipulate. Essentially the SNB claims that 58 billion CHF out of the 88.76 total equity are “at risk”. For now, it counters the 23.25 billion losses of 2015 with a gain of 28.7 billion interim results in 2016. This gives implicitly the results over two years time and answers the question in the beginning.
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Liabilities(see more posts on sight deposits, )
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