R74 SNB Results Tables

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r.karadjov
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Page no: R74

Table of contents

1 SNB Results Longterm H1 2017
2 Profit on foreign currency positions
3 Valuation gain on gold holdings
4 –> mistake: gain = profit,
5 Percentage of gold to balance sheet
6 Profit on Swiss franc positions
7 Negative Interest rates
8 SNB Liabilities
9 Liabilities track the SNB interventions
10 SNB Results 2017 H1 Feedback Part1
11 SNB Results Feedback 2017 H1 Part2
12 SNB Results

The basis of the post is the Q3 Post.

Tasks:

Update Media Title and Title, as I just wrote here for 2016 and 2015 post. (must update the numbers slightly)
do the remaining calculations
Put the small tables with the results of the calculations
When I write in italic font, this means you update the data.
Use Quoted text when I it the

The tables should look like this one (but no screenshots, put proper tables.

Example

- Click to enlarge

Graph Task:

→ Add 2016 (+24.5 bn) to the graph for the 2016 post with a copy paste. I use Paint Net.

→ Add the same graph for 2015 SNB results.

We now use datawrapper.

—————————————————————————

From the press release

Rising volatility of SNB Earnings

Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, they have huge swings.

But the SNB may lose 50 billion in one year and win 60 billion in the next year or vice verse

SNB Results Longterm H1 2017

- Click to enlarge

Profit on foreign currency positions

The net result on foreign currency positions was CHF 0.1 billion.

Interest income accounted for CHF 4.4 billion and dividends for CHF 1.8 billion. Movements in bond prices differed from those in share prices. A loss of CHF 3.6 billion was recorded on interest-bearing paper and instruments. By contrast, equity securities and instruments benefited from the favourable stock market environment and contributed CHF 9.4 billion to the net result.

Exchange rate-related losses totalled CHF 11.8 billion. Exchange rate gains on the euro did not offset losses recorded on other investment currencies, particularly the US dollar.

Very Good,
you can copy the table as text, no image needed

Valuation gain on gold holdings

A valuation gain of CHF 0.3 billion was achieved on gold holdings, which remained unchanged in volume terms. Gold was trading at CHF 38,217 per kilogram at end-June 2017 (end-2016: CHF 37,885).

SNB Results Q1/2017 (in bn CHF)	Profit	Balance Sheet	Profit in %
Total Profit on Gold…………………………..	0.3	775	0.04%

–> mistake: gain = profit,

Do not confuse gain, profit with holdings
The SNB holds many tons of gold, which is worth 39.7 bn CHF–> Holdings
but made a profit of 0.3 bn. –> profit ,gain

Percentage of gold to balance sheet

Even if the gold price is rising, its parts of the balance sheets is falling.

SNB Balance Sheet items (in bn CHF)	2016	2015
Gold	39.4	35.5
Balance sheet	746	640
% of gold	5.28%	5.54%

SNB Balance Sheet items (in bn CHF)	Holdings H1/2017	Holdings 2016	Holdings 2015	Holdings 2014
Gold……………………………	39.7	39.4	35.5	39.60
Total Balance Sheet	775	746	640	561
Gold in % of Balance Sheet	5.12%	5.28%	5.55%	7.06%

You can put 2015 and 2014, too. you got the data –> NOT DONE
Write holdings now, so you not mix it up
Balance Sheet

(old example)

The balance sheet has expanded by over 106.4 bn francs by 16.5%

	2016	2015
balance sheet in CHF	746.5	640.1	(746-640)/640 = 16.62%
Swiss GDP in CHF	650	645	5 / 645 = 0.78%
% of GDP	114,84% = 746.5/650	992,40%

The old example was already wrong 746.5 – 640.1 = 106.4

2017: 3.82% is correct, but 0.37% is wrong

The balance sheet has expanded by over 28.5 bn. francs 0.37% (2017)

	*2017*	*2016*	*Increase in %*
SNB balance sheet in CHF……………….	775	746.5	3.82%
Swiss GDP in CHF	656	650	0.92%
% of GDP	118.14%	114,8

775 – 746.5 = 28.5

656-650 = 6

Increase in %: 16.7 / 746,5 = 0.0223% (2016)

28.5 / 775 = 0.3677

The balance sheet expanded by over 106 bn francs, with foreign currency purchases

While the SNB supports foreign stock markets and foreign companies, it does not invest in Swiss stocks.

	H1/2017	2016
Swiss Franc Securities	-25,6	45,5
Total Balance Sheet	774994	746502
%CHF securities	-0,0033%	0,0061%

2row table with

	2017	2016	2015
%CHF securities	/774944	45.5 / 746502	83.4 / 640151

Profit on Swiss franc positions

The net result on Swiss franc positions, which stood at CHF 0.9 billion, was largely comprised of negative interest charged on sight deposit account balances.

Negative Interest rates

Furthermore the SNB harms the Swiss economy, when it reduces the profits of Swiss banks by negative interest rates. With this measure it maintains its own profitability.

	2017	2016	Change in %
Income through negative interest rates	4.35	4.12	5.58%
SNB balance sheet	774.9	746.5	3.80%
in % of balance sheet	0.56%	0.55%

One essential part of SNB profits are negative interest rates

SNB Liabilities

Sight deposits is the biggest part of SNB interventions

(sight deposits of domestic banks + Liabilities towards the confederation+ Sight deposits of foreign banks)

	2017	2016	Change in%
Total Sight Deposits (sight deposits of domestic banks + Liabilities towards the confederation+ Sight deposits of foreign banks)	579	530	5.36%
Balance Sheet	774.9	746.5	3.80%
% of balance sheet	69.9%	66.9%