Get the Old Lady working

The Swiss National Bank has become a great money-spinner, says Matthew Lynn. The Bank of England should follow suit.

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The Swiss National Bank is on to a nice earner
(Image credit: Credit: blickwinkel / Alamy Stock Photo)

Which company has a price/earnings ratio of just 0.02, annual profits almost as high as Apple's, and yet a market value of less than $500m? It's the Swiss National Bank (SNB) one of the oddest quoted businesses in the world, and the Swiss central bank. This month, we learned that it has been minting money on an epic scale. In 2017, its profits were CHF54bn ($56bn) a record, and more than double those of 2016. The SNB's share price is now almost CHF5,000. A year ago, it was less than CHF1,700. It is the bitcoin of central banks.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.