Gold Shines in SNB's Quarterly Balance Sheeta
The Swiss National Bank posted a profit in the first quarter of 2025. The appreciation of its gold holdings pushed the numbers into positive territory, while other asset classes recorded losses. The market turbulence triggered by Donald Trump’s «Liberation Day» has yet to be reflected in the figures.
The Swiss National Bank (SNB) reported a profit of 6,7 billion francs for the first quarter of 2025.
The performance was mainly driven by a valuation gain of 12,8 billion francs on its gold holdings, according to figures released on Thursday.
As of the end of March 2025, gold was trading at 88,297 francs per kilogram, compared to 76,011 francs at the end of 2024.
Losses Across Other Asset Classes
Other asset classes posted negative results. The SNB recorded a loss of 5,3 billion francs on foreign currency positions, primarily due to a 6.4 billion franc drop in the value of equities and equity instruments.
Strong Swiss Franc Weighs on Currency Positions
Interest and dividend income amounted to 3,1 billion and 0,6 billion francs, respectively, against interest expenses of 0,2 billion francs.
The stronger franc against the US dollar and the euro also impacted. Currency-related losses totaled 2,3 billion francs.
Positions in Swiss francs contributed an additional negative 0,7 billion francs, of which 0,4 billion francs were due to interest paid on sight deposits held in giro accounts.
Additional interest expenses of 0,2 billion francs stemmed from liquidity-absorbing operations, such as repo transactions and the issuance of SNB Bills.
Weak Start Expected for Q2
UBS analysts recently estimated the SNB’s first-quarter profit to be in the range of 5 to 15 billion francs. The actual result, therefore, came in closer to the lower end of the forecast.
Losses stemming from the market reaction following the U.S. tariff announcement on April 2 are expected to be substantial. UBS projects an 8 billion franc decline in equity holdings from the end of March to mid-April, as well as a currency-related loss of 35 billion francs.
Source: https://www.finews.com/