SNB reports half-year profit as strong stocks offset franc gains

The Swiss National Bank (SNB) made a solid six-month profit on rising equities and gold prices, replenishing its capital base and keeping hopes alive that the central bank will be able resume payouts to the government. Switzerland’s central bank notched up a gain of CHF56.8 billion ($64.5 billion) for the first half of the year, it said on Wednesday. That’s slightly below the first-quarter result, as the persistent strength of the franc ate into earnings in the April-June period. The appreciated Swiss currency dealt a blow to proceeds from SNB’s large assets held in foreign currencies. Still, at CHF49.3 billion, those stocks and bonds continued to yield the largest part of the profit. Gold holdings earned a valuation gain of CHF12.2 billion, while franc positions accrued a loss of CHF4.5 billion, mainly because the institution had to pay interest on deposits of commercial banks. With second-quarter results essentially not impacting the strongest first three months on record, the ...