UBS sees positive Q3 for SNB

8 years ago - Published in Finance, Fundamental Analysis

The Swiss National Bank (SNB) should close the third quarter with a profit oscillating between seven and nine billion francs, mainly due to the favorable performance of the stock markets, according to UBS estimates.

The gold market, the foreign currencies position and bond markets are slightly wavy. The report on the exercise of the SNB for the July-September quarter is expected on October 31.

The profit forecast should therefore be much lower than that achieved in the second quarter (15 billion). In the space of nine months, according to UBS calculations, earnings should be around 28-30 billion swiss francs, well above the long-term expectations.

The institute, however, remains cautious. On the distribution of profits, according to UBS, each canton should receive about a billion a year, confirming the allocation mode.

On the sidelines of a Bloomberg event in Zurich on Wednesday, Vice Chairman SNB Fritz Zurbruegg, defending  negative interest rates policy, said "you still have a significant overvaluation of the franc."