Consolidated management report
LLB Group financial statement
The consolidated financial statement is prepared according to International Financial Reporting Standards (IFRS). In the 2012 business year, the LLB Group earned a net profit of CHF 97.9 million (2011: CHF 15.4 million). This corresponds to an increase of CHF 82.5 million compared with the previous year. Thanks to the positive development of the markets, especially in the second half year, income from financial investments grew strongly and amounted to CHF 44.1 million by 31 December 2012 (2011: CHF 0.4 million). Interest rate hedging costs declined substantially compared with the previous year, resulting in net trading income of CHF 18.6 million (2011: minus CHF 6.2 million). On account of the lower credit loss expense, net interest income increased after credit loss expense to CHF 134.7 million (2011: CHF 124.1 million). Net fee and commission income decreased to CHF 203.5 million (2011: 208.9 million). The net profit attributable to the shareholders of LLB for 2012 totalled CHF 94.2 million (2011: CHF 11.0 million). Earnings per share rose to CHF 3.32 (2011: CHF 0.38).
The Cost-Income-Ratio stood at 61.7 percent (2011: 75.9 %). Since the 2012 business year, the LLB Group calculates this ratio as follows: provisions for legal and litigation risks as well as allowances for non-current assets held for sale are not counted as operating expenses; credit loss expense are not counted as operating income.
Assets under management
The pleasing development on the global stock markets had a positive impact on client assets under management. At 31 December 2012, these amounted to CHF 49.9 billion (31 December 2011: CHF 48.1 billion), corresponding to a rise of 3.7 percent. Assets in own-managed funds increased by 8.7 percent to CHF 3.9 billion (31 December 2011: CHF 3.6 billion), assets with discretionary mandates rose slightly by 2.1 percent to CHF 7.7 billion. Other assets under management totalled CHF 38.3 billion (31 December 2011: CHF 37.0 billion), representing a gain of 3.6 percent.
In the 2012 business year, the LLB Group posted a net new money outflow of CHF 0.4 billion compared with a net new money inflow of CHF 0.6 billion in 2011.
Assets under management as at 31 December 2012
CHF 49.9 billion