Swiss NB profits up to $ 880 million on the sharp rise in gold
The Swiss National Bank made a profit of $ 880 million in the first half of this year, driven by a rise in gold prices
The Swiss National Bank (SNB) posted a profit of 800 million francs ($882 million) in the first six months of this year as a hard rise in gold prices offset losses in its foreign exchange stock.
The bank’s losses from the surge in exchange rates amounted to 6.8 billion francs, according to a statement on Friday. The value of gold assets increased by 7.1 billion francs. The precious metal is up 30 percent this year.
SNB is an exchange-traded company. So fluctuations in asset prices are having a big impact on their profits. But this is not reflected in any way in the bank’s monetary policy, and the dividend paid to shareholders is determined by annual profit.
The SNB, which keeps its deposit interest at minus 0.75 percent, has collected 600 million francs due to its monetary policy.