(Adds detail, analyst)
ZURICH, March 6 (Reuters) - The Swiss National Bank reported on Monday an annual loss of 132.5 billion
Swiss francs ($141.54 billion), in line with the provisional
calculations it announced in January.
The loss, the biggest in the central bank's 115-year
history, was caused by a plunge in the value of the SNB's
investments caused by bond and stock market declines last year.
A strengthening of the Swiss franc also had a negative
effect, reducing the SNB's holdings and returns from foreign
investments when they were converted back into Swiss francs.
The loss, which followed a profit of 26 billion francs in
2021, means the SNB will make no payout to the Swiss central or
regional governments or dividend to investors for only the
second time since it was established in 1907.
Most of last year's shortfall could be attributed to the
131.5 billion francs lost on foreign currency positions, with
its bond holdings losing 72 billion francs in value and its
share portfolio worth 41 billion francs less.
The reported loss wiped out the SNB's distribution reserve
of 102.5 billion francs, meaning the central bank posted a net
loss of 39.5 billion francs after an allocation for provisions
was taken into account.
The SNB, which is due to give its next monetary policy
update on March 23, declined to comment on how the loss could
affect its future monetary policy.
Analysts did not think it would influence the matter, with
the SNB having 66 billion francs in equity despite the massive
losses.
"Even if equity was wiped out altogether this wouldn’t
change monetary policy in the short term as the SNB can operate
without equity," said UBS economist Alessandro Bee.
"Only in the case of a prolonged period of negative equity I
would see an impact on monetary policy. But we’re far from such
a scenario even after the huge loss of last year."
($1 = 0.9361 Swiss francs)
(Reporting by John Revill
Editing by Bernadette Baum, Kirstne Donovan)
Messaging: john.revill.thomsonreuters.com@reuters.net))
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