Swiss National Bank announced a record loss of $142.4 billion in nine months of the year

November 5, 2022

The Swiss National Bank reports a loss of CHF 142.4 billion for the first three quarters of 2022.

The loss on foreign currency positions amounted to CHF 141.0 billion. A valuation loss of CHF 1.1 billion was recorded on gold holdings. The loss on Swiss franc positions was CHF 24.1 million.
The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. This means that extreme fluctuations cannot be ruled out. Only provisional
conclusions are possible as regards the annual result.

Loss on foreign currency positions

The loss on foreign currency positions totalled CHF 141.0 billion. Interest and dividend income amounted to CHF 5.1 billion and CHF 3.4 billion respectively. Price losses of CHF 70.9 billion were recorded on interest-bearing paper and instruments, and CHF 54.2 billion in price losses were recorded on equity securities and instruments. Exchange rate-related losses totalled CHF 24.4 billion.

Valuation loss on gold holdings

A valuation loss of CHF 1.1 billion was recorded on gold holdings, which remained unchanged in volume terms. Gold was trading at CHF 52,525 per kilogram at the end of September 2022 (end-2021: CHF 53,548).

Loss on Swiss franc positions

The loss on Swiss franc positions totalled CHF 24.1 million. The negative interest charged on sight deposit account balances until 22 September 2022 was countered in particular by price losses on interest-bearing paper and instruments.

Provisions for currency reserves

As at end-September 2022, the SNB recorded a loss of CHF 142.4 billion, before the allocation to the provisions for currency reserves. In accordance with art. 30 para. 1 of the National Bank Act (NBA), the SNB is required to set aside provisions permitting it to maintain the currency reserves at the level necessary for monetary policy. The allocation for the current financial year is determined at the end of the year.

Source: Swiss National Bank
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