The Swiss National Bank (SNB) has reported a first quarter loss of 32.8 billion Swiss francs ($33.75 billion), with losses on foreign currency investments accounting for the poor performance.
The bank made a loss of 36.8 billion francs on its foreign currency investments due to lower bond prices and the higher franc reducing their value. It did however make 1.6 billion francs from interest on its bond portfolio along with 800 million francs in dividends to slightly offset those losses.
Bond prices have fallen this year due to expectations of higher interest rates in response to rising inflation. The SNB holds around 80% of its foreign currency investments in its bond portfolio.
A resurgent Swiss franc, boosted by investors seeking safe havens due to increased political instability, has also reduced the value of foreign investments held by the bank.
The Russian invasion of Ukraine along with other factors pushing up the price of gold did see the SNB make a gain of 4.2 billion francs on its holdings.
The bank only made a small profit of 10.6 million francs from its Swiss franc positions, mainly generated by negative interest rates put in place to fight against the rising value of the franc.