Institutional Clients

Intermediary and investment fund business, asset management

The Institutional Clients Market Division encompasses the intermediary and fund business, as well as the asset management services of the LLB Group. Its clients include professional investors and financial intermediaries comprising fiduciaries, asset managers, fund promoters, investment companies, insurance companies and pension funds. As one of the three largest providers of fund services in Liechtenstein, the LLB Group offers discerning institutional clients efficient solutions from one source. Private labelling is one of the LLB Group’s strategic cornerstones. As a custodian bank, the LLB Group possesses acknowledged expertise in the management and administration of complex fund mandates. One of the LLB Group’s great strengths is its investment competence.

Business segment result

Assets under management by the Institutional Clients Business Segment decreased by 1.3 percent to CHF 24.9 billion in the first half of 2014. The net new money outflow amounted to CHF 606 million due largely to individual large outflows with custodian bank funds and public institutions.

The sale of the Jura Trust Group and the closure of LLB (Switzerland) Ltd. had an adverse impact on the business result of the Institutional Clients Segment in the first half year of 2013. Furthermore, in the previous year a total of CHF 55.8 million were booked to other income and CHF 91.7 million to General and administrative expenses of one-off effects. In total, these effects boosted the segment result substantially of CHF 45.4 million to CHF 15.3 million.

The Cost-Income-Ratio improved from 91.7 percent to 86.5 percent.

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

First half 2014

First half 2013

+/– %

Net interest income

4'007

6'026

–33.5

Credit loss (expense) / recovery

1'223

700

74.7

Net interest income after credit loss expense

5'230

6'726

–22.2

Net fee and commission income

42'393

51'482

–17.7

Net trading income

4'043

4'760

–15.1

Other income

110

55'750

–99.8

Total operating income

51'776

118'718

–56.4

Personnel expenses

–19'704

–20'376

–3.3

General and administrative expenses

1'969

–97'823

 

Depreciation and amortisation

–1'683

–7'882

–78.6

Services (from) / to segments

–17'058

–22'717

–24.9

Total operating expenses

–36'476

–148'798

–75.5

Segment profit before tax

15'300

–30'080

 

Performance figures

(XLS:)

 

 

 

 

First half 2014

First half 2013

*

Operating expenses (excluding provisions for legal and litigation risks, allowances for non-current assets held for sale and impairment for goodwill) in relation to operating income (excluding credit loss expense and adjustments on purchase price obligations from acquisitions).

**

Operating income excluding credit loss expense relative and excluding adjustments on purchase price obligations from acquisitions to average business volumes.

Net new money (in CHF millions)

–606

76

Growth of net new money (in percent)

–2.4

0.3

Cost-Income-Ratio (in percent)*

86.5

91.7

Gross margin (in basis points)**

39.7

48.1

Additional information

 

(XLS:)

 

 

 

 

 

30.06.2014

31.12.2013

+/– %

Business volumes (in CHF millions)

25'198

25'567

–1.4

Assets under management (in CHF millions)

24'890

25'228

–1.3

Employees (full time equivalent, in positions)

161

166

–3.0

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