SNB Predicted to Return to Profitability in Q2

The Swiss National Bank (SNB) is expected to return to profitability in the second quarter of this year, according to economists at UBS. This comes after a significant loss of half a billion francs in the first quarter.

The SNB's recovery hinges on the performance of its equity portfolio, which is anticipated to increase by around CHF30 billion, or 14%, in value. However, the decline in gold prices over the period will reduce the value of the bank's massive gold stockpile by CHF15 billion.

The bank's debt securities portfolio has experienced a more volatile trajectory, influenced by varying interest rates in different countries. Despite this, the SNB is expected to post a profit of between CHF19 billion and 24 billion in the second quarter.