Segment reporting by operating segments

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

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

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

Following the management approach of IFRS 8, operating segments are reported in accordance with the 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. 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 organizational structure, income and expenditure are allocated to the business 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.

(XLS:) Download
Business year 2014

in CHF thousands

Retail & Corporate Banking

Private Banking

Institutional Clients

Corporate Center

Total Group

*

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

Net interest income

79'851

13'340

7'418

36'002

136'612

Credit loss (expense) / recovery

−1'864

957

−911

0

−1'818

Net interest income after
credit loss expense

77'987

14'297

6'507

36'002

134'793

Net fee and commission income

26'540

76'968

86'970

131

190'609

Net trading income

9'391

8'985

9'166

−50'932

−23'391

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

0

0

0

36'257

36'257

Share of net income of associates

0

0

0

19

19

Other income

800

31

−297

3'213

3'748

Total operating income *

114'718

100'281

102'346

24'690

342'036

Personnel expenses

−32'043

−24'955

−38'170

−68'699

−163'868

General and administrative expenses

−2'195

−5'318

−6'321

−60'943

−74'777

Depreciation and amortisation

−100

−2

−3'342

−28'885

−32'329

Services (from) / to segments

−40'538

−34'538

−35'928

111'005

0

Total operating expenses

−74'876

−64'813

−83'761

−47'522

−270'973

Operating profit before tax

39'842

35'468

18'585

−22'832

71'063

Tax expenses

 

 

 

 

1'542

Net profit

 

 

 

 

72'604

(XLS:) Download
Business year 2013

in CHF thousands

Retail & Corporate Banking

Private Banking

Institutional Clients

Corporate Center

Total Group

*

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

Net interest income

84'669

18'515

10'469

32'066

145'719

Credit loss (expense) / recovery

817

−20'400

−5'400

0

−24'983

Net interest income after
credit loss expense

85'486

−1'885

5'069

32'066

120'736

Net fee and commission income

24'301

85'326

101'816

−1'027

210'416

Net trading income

7'748

8'892

9'136

32'857

58'633

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

0

0

0

15'645

15'645

Share of net income of associates

0

0

0

5

5

Other income

744

15'900

57'283

7'607

81'534

Total operating income *

118'279

108'233

173'304

87'153

486'969

Personnel expenses

−28'928

−28'980

−39'384

−75'884

−173'176

General and administrative expenses

−3'485

−16'273

−116'212

−58'171

−194'141

Depreciation and amortisation

−107

−2'459

−9'853

−46'307

−58'726

Services (from) / to segments

−41'857

−40'409

−43'467

125'733

0

Total operating expenses

−74'377

−88'121

−208'916

−54'629

−426'043

Operating profit before tax

43'902

20'112

−35'612

32'524

60'926

Tax expenses

 

 

 

 

−7'153

Net profit

 

 

 

 

53'773

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group’s revenues.

top of page