Segment reporting by operating segments

The business activities of the LLB Group are divided into the following three business areas. These form the basis for the segment reporting:

  • Retail & Corporate Banking Segment encompasses the universal banking business in the home markets of Liechtenstein and Switzerland.
  • Private Banking Segment encompasses all the private banking activities of the LLB Group.
  • Institutional Clients Segment encompasses the financial intermediary and investment fund business, as well as the asset management and wealth structuring activities of the LLB Group

The segments receive comprehensive support from the Corporate Center. It comprises the following functions: financial and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication and branding, corporate development, as well as logistics and IT services.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Management (chief operating decision maker), which is responsible for allocating resources to the reportable segments and assesses their performance. All operating segments used by the LLB Group meet the definition of a reportable segment under IFRS 8.

In accordance with the principle of responsibility, and based on the organizational structure, income and expenditure are allocated to the business divisions. Indirect costs resulting from services provided internally are accounted for according to the principle of causation and are recorded as a revenue increase for the service provider and as a cost increase for the service beneficiary. The remaining income and expenditure for overriding services which cannot be assigned to the segments are shown under Corporate Center. Furthermore, consolidation adjustments are reported under Corporate Center.

The information provided about each segment is based on internal reports concerning segment accounting, assets and other information, which are regularly reviewed by the Group Executive Board.

Transactions between the segments were executed at standard market conditions.

On 1 July 2012, an internal restructuring of the segments was carried out. Up to 30 June 2012, the LLB Group allocated income and expense positions of the Group companies according to their legal structure to the individual segments. The income and expense positions of LLB Group were assigned to the individual segments on the basis of specified parameters and assumptions. On the basis of the new segment structure since 1 July 2012, the income and expense positions of all companies have been allocated to the individual segments on the basis of their business activities. In most cases this means that the income and expense positions of legal companies are no longer assigned to just one segment. The segment reporting as per 31 December 2011 has been adjusted to reflect the new segments.

Business year 2012

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Corporate
Center

Total
Group

Net interest income

91'218

22'208

15'026

52'772

181'224

Credit loss (expense)/recovery

–18'916

–10'100

–7'300

–10'200

–46'516

Net interest income after credit loss expense

72'302

12'108

7'726

42'572

134'708

Net fee and commission income

19'163

69'729

107'975

6'592

203'459

Net trading income

6'960

9'197

8'407

–5'938

18'626

Net income from financial investments at fair value through profit and loss

0

0

0

44'121

44'121

Share of net income of associates

0

0

0

7

7

Other income

0

0

0

7'968

7'968

Total operating income

98'425

91'034

124'108

95'322

408'889

Personnel expenses

–27'430

–26'591

–45'103

–61'631

–160'755

General and administrative expenses

–3'264

–14'094

–21'272

–64'109

–102'739

Depreciation and amortisation

–140

–129

–4'506

–29'824

–34'599

Services from/to segments

–36'520

–31'476

–40'899

108'895

0

Total operating expenses

–67'354

–72'290

–111'780

–46'669

–298'093

Segment profit before tax

31'071

18'744

12'328

48'653

110'796

Income tax expenses

 

 

 

 

–12'890

Net profit

 

 

 

 

97'906

Business year 2011

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Corporate
Center

Total
Group

Net interest income

95'524

23'256

15'735

55'263

189'778

Credit loss (expense)/recovery

–1'613

–10'032

–52'476

–1'547

–65'668

Net interest income after credit loss expense

93'911

13'224

–36'741

53'716

124'110

Net fee and commission income

19'674

71'588

110'854

6'768

208'884

Net trading income

10'300

13'610

12'441

–42'544

–6'193

Net income from financial investments at fair value through profit and loss

0

0

0

449

449

Share of net income of associates

0

0

0

190

190

Other income

0

0

0

11'838

11'838

Total operating income

123'885

98'422

86'554

30'417

339'278

Personnel expenses

–30'900

–29'955

–50'809

–69'428

–181'092

General and administrative expenses

–3'867

–7'931

–16'436

–75'957

–104'191

Depreciation and amortisation

–146

–135

–4'712

–31'184

–36'177

Services from/to segments

–41'451

–35'726

–46'421

123'598

0

Total operating expenses

–76'364

–73'747

–118'378

–52'971

–321'460

Segment profit before tax

47'521

24'675

–31'824

–22'554

17'818

Income tax expenses

 

 

 

 

–2'413

Net profit

 

 

 

 

15'405

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group's revenues.

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