Business segment result

The LLB Group reports the structural contribution, the results of its own financial investments, and the income from interest rate hedge accounting under the Corporate Center.

From the perspective of the reporting date, a valuation loss of CHF 55.9 million was incurred with interest rate swaps in 2014. This meant that net trading income declined from CHF 32.9 million in the previous year to minus CHF 50.9 million. At the same time, income from financial investments increased by 131.7 percent to CHF 36.3 million (2013: CHF 15.6 million). Operating income fell by 71.7 percent to CHF 24.7 million (2013: CHF 87.2 million).

Operating expenses were reduced by 13.0 percent to CHF 47.5 million (2013: CHF 54.6 million). The lower total headcount is largely attributable to fewer employees in the Corporate Center. Cost savings with occupancy and IT expenses drove down general and administrative expenses. At the same time, in 2014 higher provisions were set aside for legal and process risks. Depreciation was reduced sharply, mainly in connection with one-off write offs in relation to the closure of LLB (Switzerland) Ltd. in the previous year.

In total, the segment profit before tax fell to minus CHF 22.8 million (2013: 32.5 million).

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Segment reporting

in CHF thousands

2014

2013

+/– %

Net interest income

36'002

32'066

12.3

Credit loss (expense) / recovery

0

0

 

Net interest income after credit loss expense

36'002

32'066

12.3

Net fee and commission income

131

−1'027

 

Net trading income

−50'932

32'857

 

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

36'257

15'645

131.7

Share of net income of associates

19

5

280.0

Other income

3'213

7'607

−57.8

Total operating income

24'690

87'153

−71.7

Personnel expenses

−68'699

−75'884

−9.5

General and administrative expenses

−60'943

−58'171

4.8

Depreciation and amortisation

−28'885

−46'307

−37.6

Services (from) / to segments

111'005

125'733

−11.7

Total operating expenses

−47'522

−54'629

−13.0

Segment profit before tax

−22'832

32'524

 

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Additional information

 

31.12.2014

31.12.2013

+/– %

Employees (full time equivalent, in positions)

378

400

−5.5

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