News · CNBC

Swiss central bank posts bumper $23bn profit as gold, foreign assets soar

The Swiss National Bank reported a third-quarter investment profit of 19.1 billion Swiss francs ($23.3 billion), driven mainly by its gold and foreign currency holdings, lifting its year-to-date profit to 44.2 billion francs, or about $53.8 billion. Still, third-quarter profit fell almost 32% year on year, and foreign currency profit of 11.6 billion francs was down around 15%. At the end of the quarter, 61% of its foreign currency reserves were in government bonds, 28% in equities and 11% in other bonds, with 39% denominated in euros and 37% in U.S. dollars. The SNB's equity portfolio is passively managed against a benchmark index, and the bank states that its goal is not to generate profit but to ensure price stability, with an inflation target of 0% to 2%. Its profits are mostly distributed to Swiss federal and local governments, and a payout is possible at year-end.

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