Swiss National Bank Reports Loss In H1

Switzerland’s central bank posted a first-half loss of 50.1 billion Swiss francs ($51.79 billion) on Friday, after the strength of the franc against the euro inflicted hefty losses on its holdings of the single currency.

The border neglected paying money on a extra the first time within its historical past in 2013 after having suffered great losing on its blonde wealth, saddling the university/college utilizing a loss of nine.a singular billion Swiss francs (usd10.one billion back then). Since ditching the cap in January, officials have relied on negative interest rates and market intervention to stem the currency’s gains.

For 2015, the SNB’s dividend is 15 Swiss francs per share, before tax.

The central bank warned it might not be able to share any profits with the nation’s government this year if results did not improve in the second half of 2015. The tourism industry has also reported fewer visitors and retailers are also struggling.

The deficit was nearly entirely caused by declines in the value of its huge foreign-currency positions, which are dominated by the euro, and which amounted to 47.2 billion francs.

Despite the massive loss, the SNB said strong fluctuations are expected in its financial results which depend largely on developments in the gold, foreign exchange and capital markets.

“Only provisional conclusions are possible as regards the annual result, the bank said in a statement on Friday”.

The SNB said euro-denominated assets made up 42 percent of its portfolio at the end of June, unchanged from end-March, while 32 percent was held in U.S. dollars, also unchanged.