Business segment result

In a difficult market environment, the Retail & Corporate Banking of the LLB Group attained a pleasing growth in business volumes in 2012. A net new money inflow of CHF 238 million was recorded, corresponding to a plus of 3.3 percent. The Retail & Corporate Banking Switzerland Business Area was particularly successful. Credit business continued to develop positively with loans increasing by 3.3 percent, or CHF 267 million. Client assets under management rose in total throughout the business segment by 3.8 percent to CHF 7.4 billion (2011: CHF 7.1 billion).

In spite of the good volume of growth, neither interest income after credit loss expenses for credit risks nor fee and commission income attained the levels of the previous year. At CHF 72.3 million, net interest income in 2012 was 23.0 percent below the level in 2011 (CHF 93.9 million). This decrease was mainly attributable to higher allowances for credit risks. In spite of the good stock market year, net fee and commission income fell in 2012 by 2.6 percent to CHF 19.2 million (2011: CHF 19.7 million). The restraint shown by clients led to a further reduction in securities transactions here.

Operating income decreased by 20.6 percent to CHF 98.4 million (2011: CHF 123.9 million). At the same time, operating expenses fell by 11.8 percent from CHF 76.4 million to CHF 67.4 million. The decrease in personnel expenses is largely due to the change over to a defined contribution plan by the Personnel Pension Fund Foundation of Liechtensteinische Landesbank AG. Marketing costs were reduced as a component of general and administrative expenses. The Cost-Income-Ratio declined to 57.4 percent (2011: 60.8 %).

The segment profit before tax decreased by 34.6 percent to CHF 31.1 million (2011: CHF 47.5 million).

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

2012

2011

+/– %

Net interest income

91'218

95'524

–4.5

Credit loss (expense)/recovery

–18'916

–1'613

 

Net interest income after credit loss expense

72'302

93'911

–23.0

Net fee and commission income

19'163

19'674

–2.6

Net trading income

6'960

10'300

–32.4

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

0

0

 

Share of net income of associates

0

0

 

Other income

0

0

 

Total operating income

98'425

123'885

–20.6

Personnel expenses

–27'430

–30'900

–11.2

General and administrative expenses

–3'264

–3'867

–15.6

Depreciation and amortisation

–140

–146

–4.1

Services from/to segments

–36'520

–41'451

–11.9

Total operating expenses

–67'354

–76'364

–11.8

Segment profit before tax

31'071

47'521

–34.6

Performance figures

(XLS:)

 

 

 

 

2012

2011

*

Operating expenses excluding provisions for legal and litigation risks and allowances for non-current assets held for sale in proportion to operating income excluding credit loss expenses for credit risks.

**

Operating income excluding credit loss expense in proportion to average business volumes.

Net new money (in CHF millions)

238

 

Growth of net new money (in percent)

3.3

 

Cost-Income-Ratio (in percent)*

57.4

60.8

Gross margin (in basis points)**

75.3

 

Additional information

 

(XLS:)

 

 

 

 

 

31.12.2012

31.12.2011

+/– %

Business volumes (in CHF millions)

15'991

15'182

5.3

Assets under management (in CHF millions)

7'399

7'127

3.8

Employees (full-time equivalents, in positions)

244

 

 

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