SNB reported 9-month profit on currency earnings

The Swiss National Bank (SNB) recorded in the first three quarters of the year a net profit of 28.7 billion francs. The gold holdings generated a gain of 7.5 billion while foreign currency investments of 20.3 billion.

The profit on Swiss franc positions amounted to 1.3 billion. In the same period of 2015 the institute had accumulated a loss of 33.9 billion.

The result of foreign currency positions, as SNB indicates in a statement today, is due to interest income (6.2 billion francs) and dividends (2.4 billion). The lower level of interest rates led to gains of $ 10 billion of securities and debt instruments, while bonds and equities have benefited from the favorable market environment contributed to the result with 5.1 billion francs.

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

On gold holdings, compared with an unchanged amount, there was a gain of 7.5 billion. In late September the price of one kilogram of gold was equal to 41'275 francs, compared to 34'103 francs at the end of 2015.

The profit on Swiss franc positions, the SNB says, mainly includes the negative interest received since 22 January 2015 on sight deposits accounts balances (1.1 billion francs), as well as price gains (121 million francs) and interest income (46 million francs) on Swiss franc securities.