Segment reporting

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

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

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

Following the management approach of IFRS 8, market divisions are reported in accordance with 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 on the basis of internal reports. 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 organisational structure, income and expenditure are allocated to the market 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.

Transactions between the segments were executed at standard market conditions.

First half 2014

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Cor-
porate
Center

Total
Group

*

There were no substantial earnings generated between the segments so that income between the segments was not material.

Net interest income

40'345

6'739

4'007

17'758

68'849

Credit loss (expense) / recovery

2'618

1'589

1'223

0

5'430

Net interest income after credit loss expense

42'963

8'328

5'230

17'758

74'279

Net fee and commission income

13'568

38'291

42'393

–1'442

92'809

Net trading income

4'476

3'870

4'043

–31'667

–19'279

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

0

0

0

20'082

20'082

Share of net income of associates

0

0

0

7

7

Other income

363

17

110

1'732

2'222

Total operating income*

61'370

50'506

51'776

6'470

170'120

Personnel expenses

–16'132

–12'534

–19'704

–31'634

–80'004

General and administrative expenses

–898

–3'583

1'969

–31'154

–33'665

Depreciation and amortisation

–50

–2

–1'683

–14'028

–15'762

Services (from) / to segments

–19'900

–16'568

–17'058

53'526

0

Total operating expenses

–36'980

–32'687

–36'476

–23'290

–129'432

Operating profit before tax

24'390

17'819

15'300

–16'820

40'688

Tax expenses

 

 

 

 

–252

Net profit

 

 

 

 

40'436

First half 2013

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Cor-
porate
Center

Total
Group

*

There were no substantial earnings generated between the segments so that income between the segments was not material.

Net interest income

42'883

9'655

6'026

14'780

73'344

Credit loss (expense) / recovery

–1'117

–4'200

700

0

–4'617

Net interest income after credit loss expense

41'766

5'455

6'726

14'780

68'727

Net fee and commission income

12'707

43'579

51'482

–1'049

106'719

Net trading income

3'532

4'687

4'760

29'782

42'761

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

0

0

0

4'089

4'089

Share of net income of associates

0

0

0

8

8

Other income

0

0

55'750

1'854

57'604

Total operating income*

58'005

53'721

118'718

49'464

279'908

Personnel expenses

–15'829

–13'370

–20'376

–40'543

–90'118

General and administrative expenses

–964

–11'416

–97'823

–27'353

–137'556

Depreciation and amortisation

–55

–12

–7'882

–25'559

–33'508

Services (from) / to segments

–21'570

–21'132

–22'717

65'419

0

Total operating expenses

–38'418

–45'930

–148'798

–28'036

–261'182

Operating profit before tax

19'587

7'791

–30'080

21'428

18'726

Tax expenses

 

 

 

 

–5'136

Net profit

 

 

 

 

13'590

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