SNB confirmed mega 2016 profit

8 years ago - Published in Finance, Fundamental Analysis

The Swiss National Bank reported a profit in 2016, the annual results showed Monday. A profit of CHF 24.5 billion was recorded in 2016 compared to a loss of CHF 23.3 billion in 2015.
The profit on foreign currency positions totaled CHF 19.4 billion. A valuation gain of CHF 3.9 billion was registered on gold holdings and a profit of CHF 1.6 billion on Swiss franc positions.

The SNB decided to amend the rule governing the allocation to the provisions for currency reserves, given the high market risks present in its balance sheet. This amendment will be applied for the first time in the 2016 financial year. The allocation for 2016 is CHF 4.6 billion.
The provisions for currency reserves will grow to CHF 62.8 billion from CHF 58.1 billion. The Annual Report will be published on 23 March 2017.

The institute also confirms the payment of a dividend of CHF 15 per share, which corresponds to the maximum riser statutory limit. Confederation and cantons will receive one billion francs, plus another 700 million by virtue of a mechanism linked to the reserve for the distribution of funds.

The SNB is not required to make a profit, with its main mandate to ensure price stability in Switzerland. But a portion of any profit it does make is distributed to the Swiss government and the country's 26 cantons.