The Swiss central bank has completed the first half with a record loss of 50.1 billion. Francs. Poor results are due to the depreciation of the gold and currency markets. Only in the second quarter the negative financial result is 20 billion. Francs. Of these, over 18 billion. Due to the loss of positions in foreign currency, and 2 billion. – Losses of gold reserves, reported Reuters.
The Bank reported a serious loss for the second consecutive quarter, after the beginning of the year gave up its policy to prevent depreciation of the euro below 1.20 francs. The decision led to a sharp appreciation of the national currency. Currently the exchange rate of the euro is around 1.06 francs. Expected expensive franc has hurt the country’s exports, as this year it decreased by 2.6%. The tourism industry and retailers also suffer because of the small number of tourists.
Because of accumulated serious loss the bank warned its shareholders that may not be able to pursue its dividend policy. Among the holdings in the bank are the federal government and the country’s cantons. Reported a record loss means that the bank should realize more profit in the second half of the year to pay dividends. Means they are traditionally used to pay for public services.
“Dividend really makes the difference,” said Credit Suisse economist Lucas Gehrig. “He can put the budget deficit or surplus back.” Gehrig estimated that the bank will have to make a profit of 25 billion. Francs in the second half of the year to pay dividends, you will have to use part of the allocated reserves in 2014
Profit in the past
Last year, the Swiss central bank reported a profit of 38.3 billion. Francs and paid a dividend of $ 2 billion. But then warned that major dividends will hardly last long, the agency recalled. Profits of the bank delicate political topic, since in 2013 there were no payouts to shareholders due to large losses in the value of gold held by the institution.
Peter Heglin, head of the board of CFOs 26 cantons of Switzerland, said that “will not accept” that the loss of the first half would mean that the bank will not pay full dividends this year, suggesting that the bank can recover some of the losses.
The Bank announced that its assets in euro up 42% of its investment portfolio at the end of June, unchanged from the end of March and 32% in dollars, also unchanged.