by George Dorgan
My articles My siteAbout meMy booksMy videos
Follow on:TwitterFacebookGoogle +
CFA SocietySeeking Alpha
The increasing volatility of SNB Earnings Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, they have huge swings. But the SNB may lose 50 billion in one year and win 60 billion in the next year or vice verse. Good years of the Credit Cycle: Rising Bond and Stock Prices until 2017 Until 2017, the SNB was able to profit on a secular tendency where both stock and bond prices (until 2016) were rising. This led to rising profits, that compensated for the ever rising Swiss franc. One new negative effect of huge balance sheet In an interview with Swiss Eco television program, SNB vice president Fritz Zurbruegg stated that the SNB is able to intervene thanks to
Topics:
George Dorgan considers the following as important: 1) SNB and CHF, Featured, newsletter, SNB Loss, SNB profit
This could be interesting, too:
Michael Njoku writes Totalitarianism Begins With A Denial of Economics
Nachrichten Ticker - www.finanzen.ch writes US-Wahl treibt Bitcoin über 90’000 US-Dollar – wie Anleger vom neuen Krypto-Hype profitieren können
Jim Fedako writes Subjectivity and Demonstrated Preference: A Possible Paradox
Connor O'Keeffe writes The Context Behind Donald Trump’s “Takeover” of the American Right
The increasing volatility of SNB EarningsAnnual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, they have huge swings. But the SNB may lose 50 billion in one year and win 60 billion in the next year or vice verse. Good years of the Credit Cycle: Rising Bond and Stock Prices until 2017
Until 2017, the SNB was able to profit on a secular tendency where both stock and bond prices (until 2016) were rising. This led to rising profits, that compensated for the ever rising Swiss franc. One new negative effect of huge balance sheetIn an interview with Swiss Eco television program, SNB vice president Fritz Zurbruegg stated that the SNB is able to intervene thanks to its big balance sheet. But what happens, when the huge balance sheet is not able to compensate for
This means that the SNB must obtain a
But
Alternatively: The SNB can take the 1% from the Swiss economy, the so-called negative rates. |
From the official press release
Confederation and cantons to receive distribution of CHF 2 billion
According to provisional calculations, the Swiss National Bank (SNB) will report a loss in the order of CHF 15 billion for the 2018 financial year. The loss on foreign currency positions amounted to CHF 16 billio n. A valuation loss of CHF 0.3 billion was recorded on gold holdings. The net result on Swiss franc positions amounted to CHF 2 billion.
The allocation to the provisions for currency reserves will be approximately CHF 5.4 billion. After taking into account the distribution reserve of CHF 67.3 billion, the net profit will be in the region of CHF 47 billion. This will allow a dividend payment of CHF 15 per share, which corresponds to the legally stipulated maximum amount, as well as a profit distribution to the Confederation and the cantons of CHF 1 billion.
The Confederation and the cantons are also entitled to a supplementary distribution of CHF 1 billion as the distribution reserve after appropriation of profit exceeds CHF 20 billion. One-third of any such distribution – in this case a total of CHF 2 billion – is allocated to the Confederation and two-thirds to the cantons. After these payments, the distribution reserve will amount to around CHF 45 billion.
A detailed report on the annual result with definitive figures will be released on 4 March 2019; the Annual Report will be published on 21 March 2019.
Tags: Featured,newsletter,SNB Loss,SNB profit