Corporate Center

Controlling processes and risks

The Corporate Center is the backbone of the LLB Group, it safeguards the company’s competitiveness. It steers, coordinates and monitors groupwide business activities, processes and risks. The Corporate Center encompasses the Group CEO, Group CFO and Group COO Divisions and supports the Retail & Corporate Banking, Private Banking and Institutional Clients Segments in conducting their activities and implementing their strategies. Its focus lies on the functions: communication, marketing, human resources, finances, risk and credit management, IT, trading, securities trading and payment services, corporate development and procurement management, as well as legal and compliance services.

The LLB Group attaches great importance to transparent communication, holistic and proactive risk management as well as to ensuring the fulfilment of compliance obligations. It believes that business success goes hand in hand with social responsibility. At the same time, modern IT systems enable new business potentials to be exploited. For example, with LLB Mobile Banking, the LLB Group provides its clients with an attractive solution for smartphones and tablets.

Business segment result

The LLB Group reports the results of its own financial investments, the structural contribution from interest differential business, earnings from money market transactions and income from interest rate hedging costs under the Corporate Center.

Interest rate hedging costs had a major impact on the segment result in the first half of 2014. From the perspective of the balance sheet date, interest rate swaps resulted in a valuation loss of CHF 34.2 million. In contrast, the structural contribution from interest differential business after credit loss expense increased to CHF 17.8 million. The LLB Group’s own financial investments – recognised at fair value through profit and loss – developed very positively and rose to CHF 20.1 million. In total, operating income declined by 86.9 percent to CHF 6.5 million. Operating expenses fell by 16.9 percent to CHF 23.3 million. The segment profit before tax amounted to minus CHF 16.8 million.

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

First half 2014

First half 2013

+/– %

Net interest income

17'758

14'780

20.1

Credit loss (expense) / recovery

0

0

 

Net interest income after credit loss expense

17'758

14'780

20.1

Net fee and commission income

–1'442

–1'049

37.5

Net trading income

–31'667

29'782

 

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

20'082

4'089

391.1

Share of net income of associates

7

8

–12.5

Other income

1'732

1'854

–6.6

Total operating income

6'470

49'464

–86.9

Personnel expenses

–31'634

–40'543

–22.0

General and administrative expenses

–31'154

–27'353

13.9

Depreciation and amortisation

–14'028

–25'559

–45.1

Services (from) / to segments

53'526

65'419

–18.2

Total operating expenses

–23'290

–28'036

–16.9

Segment profit before tax

–16'820

21'428

 

Additional information

 

(XLS:)

 

 

 

 

 

30.06.2014

31.12.2013

+/– %

Employees (full time equivalent, in positions)

381

400

–4.8

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