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Zurich, Switzerland (GenevaLunch) – The Swiss National Bank (SNB) had cumulative profits for 2009 of CHF6.9 billion at the end of September 2009  thanks to the continuing high price of gold, improvements in financial markets and low interest rates that resulted in valuation gains in both gold and foreign currency investments. Gold accounted for CHF3.8 billion: the price of gold was at CHF33,304 at the end of the third quarter, compared to CHF29,640 per kilo at year-end 2008.

Swiss franc investment income was relatively low, the central bank said in its third quarter statement, where it cautioned that “only provisional conclusions with regard to the annual result may be drawn from the interim results” because of the tendency for these markets to fluctuate strongly.

Currency movements resulted in a loss of CHF318 million. The bank reports that “The US dollar has lost its interim gains, and on the reference day it was 2.4% below
the year-end value. This currency loss was partly compensated by counter movements in the euro and the pound sterling (2% and 6.5% above the year-end exchange rates, respectively.

Improvements in markets brought price gains on securities of CHF967 million and dividend income of CHF157m. Interest income was CHF1.9b.

UBS stabilization fund being reduced, no negative impact

The CHF35 billion loan by the SNB that makes up the bulk of the UBS stabilization fund created in October 2008 is being steadily reduced, says the SNB, and was valued at CHF21.9 billion on the closing date for the period. The loan remains fully covered by the value of the investments, the SNB says.

Background:

• Swiss National Bank reduces UBS bailout money, GenevaLunch, 10 February 2009
• Swiss government sells stake in UBS, GenevaLunch, 19 August 2009