2013 gold price fall shock took shine off Swiss National Bank
7 Jan 2014 7:18 AM IST
The Swiss National Bank (SNB) expects a 9-billion Swiss franc loss in 2013, according to provisional figures. But it had lost far more on the value of its gold holdings, which shed 15 billion francs during a year when prices for the precious metal dropped by 28 per cent.
That deep loss was offset though by gains of 3 billion Swiss francs on the banks foreign currency positions, and another increase of 3 billion on a stabilisation fund it put in place in 2008 to save Switzerland's largest bank, UBS, from collapse. But since SNB needed to put aside 3 billion Swiss francs as a provision for its currency reserves, it said it expected to end up about 12 billion francs in the red.
‘As this loss will be substantially larger than the 5.3 billion Swiss francs in the distribution reserve, the SNB cannot make a profit distribution,’ the bank explained.
Switzerland's central bank usually hands out dividends to the Swiss Confederation and regional cantons.
Last year, BNS reported a 6.9-billion-franc profit and redistributed 2.4 billion francs of its profit to the Swiss Confederation, cantons and other share holders.
That deep loss was offset though by gains of 3 billion Swiss francs on the banks foreign currency positions, and another increase of 3 billion on a stabilisation fund it put in place in 2008 to save Switzerland's largest bank, UBS, from collapse. But since SNB needed to put aside 3 billion Swiss francs as a provision for its currency reserves, it said it expected to end up about 12 billion francs in the red.
‘As this loss will be substantially larger than the 5.3 billion Swiss francs in the distribution reserve, the SNB cannot make a profit distribution,’ the bank explained.
Switzerland's central bank usually hands out dividends to the Swiss Confederation and regional cantons.
Last year, BNS reported a 6.9-billion-franc profit and redistributed 2.4 billion francs of its profit to the Swiss Confederation, cantons and other share holders.
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