Business segment result

The business volume of the Retail & Corporate Banking segment of the LLB Group grew by 2.5 percent to CHF 17.3 billion (31.12. 2013: CHF 16.9 billion) in 2014. Lending business again posted a very positive development with loans rising by 3.4 percent to CHF 9.1 billion (2013: CHF 8.8 billion). Assets under management recorded a gain of 1.7 percent to CHF 8.2 billion (31.12.2013: CHF 8.1 billion). The segment reported a net new money inflow of CHF 49 million (2013: outflow of CHF 2 million). Headcount stood at 225 full-time positions (31.12.2013: 235).

Operating income fell by 3.0 percent to CHF 114.7 million (2013: CHF 118.3 million). The persisting pressure on margins in lending business led to a decline in interest income of 5.7 percent to CHF 79.9 million (2013: CHF 84.7 million). In fixed interest business, margins showed a gratifying improvement. Fee and commission income and trading income again exceeded the previous year’s result.

Operating expenses rose by 0.7 percent to CHF 74.9 million (2013: CHF 74.4 million). Personnel expenses climbed by 10.8 percent to CHF 32.0 million (2013: CHF 28.9 million). General and administrative expenses decreased by 37.0 percent to CHF 2.2 million (2013: CHF 3.5 million). This was attributable to the provisions set aside for the US tax dispute in the previous year.

The segment profit before tax fell by 9.2 percent to CHF 39.8 million (2013: CHF 43.9 million).

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Segment reporting

in CHF thousands

2014

2013

+/– %

Net interest income

79'851

84'669

−5.7

Credit loss (expense) / recovery

−1'864

817

 

Net interest income after credit loss expense

77'987

85'486

−8.8

Net fee and commission income

26'540

24'301

9.2

Net trading income

9'391

7'748

21.2

Other income

800

744

7.5

Total operating income

114'718

118'279

−3.0

Personnel expenses

−32'043

−28'928

10.8

General and administrative expenses

−2'195

−3'485

−37.0

Depreciation and amortisation

−100

−107

−6.5

Services (from) / to segments

−40'538

−41'857

−3.2

Total operating expenses

−74'876

−74'377

0.7

Segment profit before tax

39'842

43'902

−9.2

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Performance figures

 

2014

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)

49

−2

Growth of net new money (in percent)

0.6

0.0

Cost-Income-Ratio (in percent) *

64.2

62.5

Gross margin (in percent) **

68.1

71.4

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Additional information

 

31.12.2014

31.12.2013

+/– %

Business volumes (in CHF millions)

17'347

16'916

2.5

Assets under management (in CHF millions)

8'223

8'089

1.7

Loans (in CHF millions)

9'124

8'827

3.4

Employees (full time equivalent, in positions)

225

235

−4.3

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