by George Dorgan
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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
Are you the author?George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com 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.
Tags: equities,Gold,Swiss National Bank
