Swiss National Bank Announces Results

by Ulrika Lomas, Tax-News.com, Brussels

13 March 2009

The Swiss National Bank has announced its annual result for 2008, showing losses of CHF4.7bn (USD3.9bn). The bank has attributed the results to exchange rate losses on foreign currency investments.

Owing to the loss protection provided by UBS, the purchase of the illiquid assets from UBS did not affect the SNB’s net result.

In recent years, the price of gold – which at times rose quite sharply – resulted in significant valuation gains for the National Bank. In the year under review, however, the SNB recorded a valuation loss of CHF0.7bn as at December 31, 2008. Current gold holdings amount to 1,040 tonnes, noted the SNB's release.

The loss on foreign currency investments came to CHF4.4bn, further worsening the bank's performance, after having recorded a profit of CHF1.3bn a year earlier. This was due to major exchange rate losses: the pound sterling, for instance, lost over 30% against the Swiss franc. Share price losses were offset by price gains and receipts on coupons from interest-bearing securities.

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