Swiss Central Bank Eyes Record Profit for 2017

The Swiss central bank said Tuesday it expected to post a record profit of 54 billion Swiss francs ($55 billion, 46 billion euros) for 2017, amid gains on its foreign currency and gold holdings.

The Swiss National Bank said it had raked in 49 billion Swiss francs in profits on its foreign currency positions alone.

The value of its gold reserves meanwhile grew by three billion francs, while its holdings in Swiss francs swelled by two billion, it said in a statement.

The overall expected profit is more than double the 24.5 billion made by the bank in 2016, and it comes just two years after the bank posted a loss of 23.3 billion francs.

Thanks to the Swiss central bank's distribution reserve, it said it expected to see the profit on its balance sheet climb even higher, to around 69 billion Swiss francs. 

In light of the record earnings, the bank said it planned to dish out the maximum possible dividend, of 15 francs per share, and would distribute a total of two billion francs to the Swiss Confederation and cantons.

The central bank's definitive 2017 figures will be published on March 5. 

The anticipated results are meanwhile far above expectations, with UBS analysts last week saying the central bank's profit would likely be around 50 billion francs.

The bank has benefitted from a strengthening stock market and especially the weakening of the Swiss franc, marking a clear turnaround after several years of being weighed down by the pricy currency.

In January 2015, the central bank suddenly decided to halt a bid to artificially hold down the value of the franc against the euro.

That decision sent the franc -- a refuge currency -- soaring in value against major currencies and worsening turbulence on global markets, forcing the bank to intervene with negative interest rates and other measures.