(09 JANUARY 2018)DAILY MARKET BRIEF 2:Swiss bank profit CHF 54 billion

Switzerland’s central bank is expecting a 2017 profit of a whopping CHF 54 billion! It follows a 2016 profit of CHF 24 billion, and comes after the bank’s 2015 decision to stop supporting the franc at CHF 1.20 per Euro. This massive gain blinks positive for the Swiss economy and signals a great 2018.

The Swiss National Bank’s earnings came from foreign currencies (CHF 49 billion - 90.70%), gold holdings (CHF 3 billion - 5.60%) and Swiss francs (CHF 2 billion - 3.70%). SNB shareholders (yes, it is a public company) will get a CHF 15/share dividend, and the federal and cantonal governments will share a distribution of CHF 1 billion. They will also receive a one-off bonus of CHF 1 billion.

By Vincent-Frédéric MIVELAZ