Swiss National Bank posts big Q2 profit thanks to share price rally

The Swiss National Bank on Friday reported a big increase in profit during its ​second quarter thanks to rising equity markets, which ‌compensated for a plunge in the price of gold.

The central bank reported a second-quarter profit of 25.7 billion Swiss ​francs ($31.84 billion), reversing a 22 billion franc loss ​a year earlier and up from a loss ⁠of 500 million francs in the first three ​months of the year.

The figure beat UBS forecasts for ​a profit of 19 billion to 24 billion Swiss francs.

The central bank between April and June made a profit of 39.9 ​billion francs on its foreign currency positions - representing ​dividends, interest payments and price gains on the mountain of stocks ‌and ⁠shares it has built up.

The MSCI World Index gained 13% in the second quarter, as markets rallied in the U.S and Europe due to accelerating investment ​in AI ​and a ⁠reduction in fears about the Iran war.

The SNB made a loss of 14.1 billion ​on its gold holdings, which represented the ​falling ⁠value of the 1,040 tonnes of the precious metal the SNB holds.


-Reuters