The Swiss National Bank (SNB) on Monday reported an annual loss of 132.5 billion francs ($141.54 billion) for all of 2022, in line with preliminary estimates announced in January, Reuters reported.

These losses, the biggest in the SNB’s 115-year history, were caused by the reduction in the value of investments made by the SNB as a result of the fall recorded last year in the stock and bond markets. The appreciation of the Swiss franc also had a negative impact on the SNB’s results, reducing the profits the SNB receives from foreign investments when they are converted back into francs.

Due to the SNB’s historic losses in 2022, which followed a profit of 26 billion francs in 2021, the institution will not pay an annual dividend to the federal government and the Swiss cantons, the second time since the Bank National of Switzerland was founded in 1907.

These losses completely wiped out the SNB’s distribution reserve of 102.5 billion francs, meaning the Swiss central bank posted a net loss of 39.5 billion francs after the distribution of reserves.

From a legal point of view, the SNB has the status of a corporation, the majority of whose shares are owned by the Swiss Federal Government and the 26 cantons. There are also about 2,000 private investors who receive dividends but have extremely limited voting rights.

In 2021, the Swiss National Bank’s (SNB) net profit rose to 26.3 billion francs from 20.8 billion francs in 2020, so the institution paid out a dividend worth six billion francs. (Agerpress)

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