October 31, 2011 / 7:37 AM / 9 years ago

SNB reports 9-month profit despite strong franc

ZURICH (Reuters) - The Swiss National Bank said it made a consolidated profit of 5.8 billion Swiss francs during the first nine months of 2011 as it managed to offset exchange rate losses linked to the strong Swiss franc.

“The gold price and current interest rate situation have resulted in high valuation gains on gold and fixed interest rate investments,” the SNB said in a statement on Monday.

“At the end of September, exchange rate losses amounted to 4.7 billion Swiss francs. However, this figure was more than offset by the other components of foreign currency positions in the net result, which contributed more than 5.0 billion francs,” the central bank said.

This resulted in a net result from SNB foreign currency positions of around 0.3 billion francs for the first three quarters of 2011, the SNB said.

The SNB set a floor for the euro-franc exchange rate in early September, saying it was ready to buy foreign currency in unlimited quantities to weaken the franc.

Exchange-rate-related valuation losses and price losses on equity securities and instruments were offset by interest income, dividend income and price gains on interest-bearing securities and instruments, the SNB said.

A valuation gain of 5.0 billion francs was achieved on the unchanged gold holdings, the SNB said.

Reporting by Silke Koltrowitz; Editing by Kavita Chandran

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