The Bank of Switzerland suffers losses of 133,000 million and does not offer dividends


He Swiss National Bank (SNB)) has reported this Monday that the closing of its fiscal year during 2022 showed an adverse result with losses of 133,069 million euros that established a negative record within the banking firm. In addition, these results contrast with the profits recorded the previous year, which were 26,417 million. On the other hand, the usual annual dividend that the entity usually offers to the Swiss Government and the cantons will not be able to be given this year.

The institution set at 9.6 billion Swiss francs (9,643 million euros) lto allocation to provisions for the yearraising the annual distributable result to -142,047 million francs (142,679 million euros), to which, after applying reserves of 102,500 million francs (102,956 million euros), limited the annual distributable loss to 39,500 million francs (39,676 million of euros).

The announced loss supposeshe worst result of the Swiss National Bank since its foundation in 1906 and, in accordance with the provisions of the National Bank Law, “prevents a distribution for fiscal year 2022”, which affects both the payment of dividends to BNS shareholders and the distribution for the Confederation and the cantons.

Negative market developments

Thus, the swiss central bank will stop distributing an annual dividend for the second time in its history, something that had only happened previously in 2013, when the year closed in ‘red numbers’. Likewise, 10 years later, BNS repositions itself in a framework that can be greatly improved.

The Swiss monetary institution specified that its 2022 results reflect the negative evolution of the marketswith losses of 131,500 million francs (132,085 million euros) for its exposure to currencies, as well as another 1,000 million francs (1,004 million euros) for its positions in the Swiss currency.

In 2021, on the other hand, the Swiss National Bank had recorded a positive result of 25.7 billion francs (25,814 million euros) for its exposure to currencies and gains of 1,100 million francs (1,105 million euros) for its positions in Swiss francs.

The SNB is incorporated as a special entity whose shares are listed on the standard domestic segment of the Swiss Stock Exchange. The institution’s majority shareholders are public entities, including the Swiss cantons and their respective cantonal banks.

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