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Gold, Bonds and Negative Interest Rates Give SNB a Q1 profit

The Swiss National Bank has achieved a profit of 5.7 billion CHF in Q1/2016. The total yield on assets per annum was 3.4%.
The main contribution comes from gold with price change of 10% in this quarter. If this performance continued, it would give a 48% yield for this year.
The total yield on debt was positive with +0.2% thanks to negative interest rates.
The deflationary environment let to rising bond prices. Bonds, make up 74% of the SNB portfolio.

Here the details of our calculation:


Position Total Position
in bn CHF
% of Total Portfolio Profit/Loss in Q1/2016
in bn CHF
Q1 P/L in %
of position
Yield on Assets for 2016
Total Assets 660 100% +5.7   +0.8%  +3.4%
Gold  39.6 6% +4.1 +10.3% +48.3%
Foreign Currency (Fiat)
FX Valuation
610 92.4% -6.9  +0.2%  -4.5%
Bonds (in foreign currency) 528 74% +6.2  +1.2%  +5.2%
— Interest Income (in foreign ccy) +2.1  +0.4%  +1.7%
Equities (in foreign currency) 122 18.4% -0.7  -0.6%  -2.3%
— Dividend income +0.5  +0.4%  +1.6%
CHF positions    3.9 0.6% +0.1  +2.6% +10.7%
Yield on Debt for 2016
Total Debt 660 100% +0.33  +0.05%  +0.20%
Total punished by neg. rates 165 25% +0.33  +0.18%  +0.75%


Sources SNB Balance Sheet  and Q1 P/L release

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George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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