Retail & Corporate Banking

Private and corporate clients

The Retail & Corporate Banking Market Division encompasses the universal banking business in the domestic markets of Liechtenstein and Switzerland. The Liechtensteinische Landesbank with headquarters in Vaduz and Bank Linth with headquarters in Uznach offer a full range of banking and financial services for private and corporate clients. This includes lending and deposit business as well as payment services together with investment and asset management. Traditionally, savings and mortgage lending business have always been of great importance.

At the same time, the LLB Group regards itself as an entrepreneurial bank having an holistic advisory concept. The corporate banking business focuses on providing a plethora of services for small and medium-sized enterprises (SMEs). These services and the expertise from one source are supplemented by retirement, financial and estate planning as well as taxation advice and corporate and private pension provisioning. The LLB Group is represented with 3 branches in Liechtenstein and 19 in the Swiss cantons of Zurich, St. Gallen, Schwyz and Glarus.

Business segment result

During the first half of 2014, the business volume in the Retail & Corporate Banking Business Segment expanded moderately to CHF 17.0 billion. Assets under management remained stable at CHF 8.1 billion. The solid inflows from the onshore markets were not able to fully compensate for the outflows posted in the cross-border markets. Accordingly, the net new money outflow amounted to CHF 25 million.

Interest income after credit loss expense increased to CHF 43.0 million. This was attributable to credit loss recovery in the first half of 2014. Fee and commission income rose by 6.8 percent. The development of earnings from investment funds was particularly pleasing. The attractive price / performance ratio was reflected in a substantial rise in trading income to CHF 4.5 million. Operating expenses fell by a further 3.7 percent to CHF 37.0 million. The segment profit before tax climbed to CHF 24.4 million.

The Cost-Income-Ratio decreased to 62.9 percent.

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

First half 2014

First half 2013

+/– %

Net interest income

40'345

42'883

–5.9

Credit loss (expense) / recovery

2'618

–1'117

 

Net interest income after credit loss expense

42'963

41'766

2.9

Net fee and commission income

13'568

12'707

6.8

Net trading income

4'476

3'532

26.7

Other income

363

0

 

Total operating income

61'370

58'005

5.8

Personnel expenses

–16'132

–15'829

1.9

General and administrative expenses

–898

–964

–6.8

Depreciation and amortisation

–50

–55

–9.1

Services (from) / to segments

–19'900

–21'570

–7.7

Total operating expenses

–36'980

–38'418

–3.7

Segment profit before tax

24'390

19'587

24.5

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)

–25

–51

Growth of net new money (in percent)

–0.3

–0.7

Cost-Income-Ratio (in percent)*

62.9

65.0

Gross margin (in basis points)**

69.3

72.8

Additional information

 

(XLS:)

 

 

 

 

 

30.06.2014

31.12.2013

+/– %

Business volumes (in CHF millions)

16'978

16'916

0.4

Assets under management (in CHF millions)

8'112

8'089

0.3

Employees (full time equivalent, in positions)

223

235

–5.1

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