Swiss National Bank Swung to $142 Billion Loss in 2022 on Foreign-Currency Positions

By Ed Frankl

The Swiss National Bank said Monday that it swung to a loss of 132 billion Swiss francs ($142.24 billion) in 2022 and won't make a profit distribution to the Swiss state, after a downturn in financial markets put a strain on its foreign-exchange holdings.

The loss was almost entirely on foreign-currency positions, which amounted to around CHF131 billion, the SNB said, after a yearslong effort by the central bank to halt the Swiss franc's continued appreciation led to large foreign-exchange reserves.

Losses on its Swiss-franc positions came to around CHF1 billion, it said.

There was, however, a small valuation gain of around CHF400 million on the bank's gold holdings, the institution said.

The result means the SNB won't make a payout to the Swiss government. After taking into account its distribution reserve of CHF102.5 billion, its yearly net loss was around CHF39 billion, it said.

In 2021, the bank made a profit of CHF26.3 billion and distributed around CHF6 billion to the Swiss state and regional cantons.

The SNB said it will publish full details on March 6.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

01-09-23 0503ET