SNB Profit Surges Amid Equity Market Rally

The Swiss National Bank (SNB) has reported a significant increase in profit for its second quarter, thanks to a rally in equity markets. The bank's profit jumped to 25.7 billion Swiss francs ($31.84 billion), reversing a loss of 22 billion francs from the same period last year and surpassing the 19-24 billion franc profit forecast by UBS.

The SNB's foreign currency positions generated a profit of 39.9 billion francs, driven by dividends, interest payments, and price gains on its stock holdings. The MSCI World Index rose 13% in the second quarter, fueled by increased investment in AI and reduced fears about the Iran war.

However, the SNB incurred a loss of 14.1 billion francs on its gold holdings due to the falling value of its 1,040 tonnes of gold reserves.