Swiss National Bank 2017 Profit Expectations


Swiss National Bank 2017 Profit Expectations is a massive gain that glitters positively for the Swiss economy and signals a great 2018. Find out what it is.

9 January, Swissquote – German data tell the story: manufacturing sales increased 4.1% annually (expected 1.2%) and industrial production rose 3.4% monthly (expected 1.8%. Demand for European goods and services is and will remain strong.

Collision of EU monetary and industrial policy

This could force the European Central Bank to ‘normalize’ monetary policy, which could push the EUR/USD above its current 1.20 mark – which, in turn, would threaten exports. ECB President Mario Draghi is trying to walk the tightrope, with dovish comments that policy accommodation remains necessary.

However, the ECB has upped its growth and inflation forecasts. Quantitative easing could end in 2018, sooner than the market anticipates. We remain constructive on the EU recovery story and see EUR/USD dips as an opportunity to reload longs.

Swiss National Bank 2017 Profit Expectations

Switzerland’s central bank is expecting a 2017 profit of a whopping CHF 54 billion! It follows a 2016 profit of CHF 24 billion and comes after the bank’s 2015 decision to stop supporting the franc at CHF 1.20 per Euro. This massive gain blinks positive for the Swiss economy and signals a great 2018.

The Swiss National Bank’s earnings came from foreign currencies (CHF 49 billion – 90.70%), gold holdings (CHF 3 billion – 5.60%) and Swiss francs (CHF 2 billion – 3.70%). SNB shareholders (yes, it is a public company) will get a CHF 15/share dividend, and the federal and cantonal governments will share a distribution of CHF 1 billion. They will also receive a one-off bonus of CHF 1 billion.

Disclaimer

This article ‘ Swiss National Bank 2017 Profit Expectations was written by Peter Rosenstreich & Vincent-Frédéric MIVELAZ, Market Analyst at Swissquote.

While every effort has been made to ensure that the data quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein.

This document does not constitute a recommendation to sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investments.

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