Swiss National Bank expects record 2017 profit of 54b Sfr

ZURICH, Jan 9 (Reuters): The Swiss National Bank expects an annual profit of 54 billion Swiss francs (Sfr) for 2017, the central bank said on Tuesday, the biggest profit in its 110-year history.

The SNB anticipates an annual profit of 49 billion francs from its foreign currency positions, which have swelled to 784 billion francs by November as it sought to weaken the Swiss franc and have increased in value as the Swiss currency depreciated last year.

The bank, which will give its full earning figures on March 5, said it also expects a valuation gain of 3 billion francs on its gold holdings.

The forecast profit would be more than double the 24.5 billion francs the SNB made in 2016, and exceed its previous highest annual profit of 38.3 billion francs in 2014.

The profit is good news for the SNB in its battle against the strength of the franc, whose high value hurts Switzerland's export-reliant economy. The strategy is paying off, with the currency losing nearly 9 per cent versus the euro last year.