Swiss National Bank in record loss

(Patria) - The Swiss National Bank (SNB) confirmed that it ended 2022 with a loss of 132.5 billion Swiss francs (141.54 billion dollars) due to declines in stock and bond markets amid rising interest rates.

After accounting for the distribution reserve, the net loss amounted to 39.5 billion francs. This is the largest loss in its 115-year history, six times larger than the previous record set in 2015, which was 23 billion francs.

In 2021, the SNB reported a profit of 26 billion francs. Last year, global stock markets weakened and bond prices fell as central banks worldwide, including the SNB, raised interest rates to curb high inflation.

Among the negative influences, the SNB also highlights the strong franc, which rose above parity with the euro in July, and its strengthening resulted in losses related to currency fluctuations.

Most of last year's deficit is attributed to a loss of 131.5 billion francs on foreign currency positions.

The SNB also recorded a loss on its bond portfolio of 72 billion francs and on its equity portfolio of 41 billion francs.

The SNB will publish an updated monetary policy report on March 23, they announced, declining to comment on how the loss might affect its future monetary policy.

Due to last year's loss, it will not pay money into the state and cantonal budgets, nor will it pay dividends to investors, for the second time since its founding in 1907.

Last year, for comparison, based on the results of the previous year, they paid six billion francs, reports Hina.