Private Banking

Private Banking

The Private Banking Market Division of the LLB Group pursues the goal of safeguarding and increasing wealth over the long term. The LLB Group possesses extensive and detailed knowledge accumulated over many years in private banking. The Private Banking Division supports wealthy private clients with expertise, dedication, discretion and a profound understanding of their goals and requirements. The LLB Group’s focus lies on the onshore markets in Liechtenstein, Switzerland and Austria, our traditional, cross-border markets in Germany and Western Europe, as well as the growth markets in Central and Eastern Europe and the Middle East. Customised to suit specific client segments, we offer investment advice, asset management, wealth structuring, financing facilities, as well as financial and retirement planning. The LLB Group has booking platforms in Liechtenstein, Switzerland and Austria. It is represented in Vaduz, Zurich-Erlenbach, Geneva, Vienna, Abu Dhabi and Dubai, as well as in the branches of Bank Linth in the east of Switzerland and of the LLB in Liechtenstein.

Business segment result

The Private Banking Business Segment posted net new money inflows of CHF 100 million in the first half of 2014. The main inflows were achieved in the strategic growth markets. Assets under management rose to CHF 16.1 billion.

Interest income after credit loss expense increased significantly to CHF 8.3 million. Whereas credit loss expenses were allocated in the previous year, in the first half of 2014 credit loss recovery were recognised. Net fee and commission income and trading income decreased by 12.1 percent and 17.4 percent respectively, which was attributable to the loss of earnings from the no longer operational LLB (Switzerland) Ltd. In total, operating income fell by 6.0 percent to CHF 50.5 million. In contrast, operating expenses were sharply reduced by 28.8 percent to CHF 32.7 million, which was also due to the elimination of the expenses of LLB (Switzerland) Ltd. The segment profit before tax doubled to CHF 17.8 million.

The Cost-Income-Ratio stood at 64.8 percent.

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

First half 2014

First half 2013

+/– %

Net interest income

6'739

9'655

–30.2

Credit loss (expense) / recovery

1'589

–4'200

 

Net interest income after credit loss expense

8'328

5'455

52.7

Net fee and commission income

38'291

43'579

–12.1

Net trading income

3'870

4'687

–17.4

Other income

17

0

 

Total operating income

50'506

53'721

–6.0

Personnel expenses

–12'534

–13'370

–6.3

General and administrative expenses

–3'583

–11'416

–68.6

Depreciation and amortisation

–2

–12

–83.3

Services (from) / to segments

–16'568

–21'132

–21.6

Total operating expenses

–32'687

–45'930

–28.8

Segment profit before tax

17'819

7'791

128.7

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 to average business volumes.

Net new money (in CHF millions)

100

–230

Growth of net new money (in percent)

0.6

–1.3

Cost-Income-Ratio (in percent)*

64.8

62.7

Gross margin (in basis points)**

57.5

61.6

Additional information

 

(XLS:)

 

 

 

 

 

30.06.2014

31.12.2013

+/– %

Business volumes (in CHF millions)

17'148

16'873

1.6

Assets under management (in CHF millions)

16'065

15'770

1.9

Employees (full time equivalent, in positions)

122

124

–1.6

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