Consolidated management report

LLB Group financial statement

The consolidated financial statement is prepared in accordance with the International Financial Reporting Standards (IFRS).

In the 2015 business year, the LLB Group earned a net profit of CHF 86.3 million. The LLB Group net profit for the 2014 business year amounted to CHF 72.1. The figures for the 2014 business year had to be restated, for details of the restatement, see point 2.1 of the accounting principles. Net profit for 2015 therefore increased by 19.7 percent or CHF 14.2 million compared with the previous year.

The financial statement for the previous year contained earnings and expenses of the swisspartners Group, which was sold at the beginning of 2015. The figures for the previous year, adjusted to consider the sale of the swisspartners Group, are provided here as a comparison basis for the previous year.

In comparison with 2014, operating income fell by 8.3 percent, but on a comparable basis for the previous year it rose by 2.5 percent. In comparison with 2014, operating expenses fell by 18.4 percent. On a comparable basis with the previous year, expenses were down by 9.2 percent.

The net profit attributable to the shareholders of LLB amounted to CHF 82.7 million (2014: CHF 70.2 million). Earnings per share stood at CHF 2.87 (2014: CHF 2.43).

Assets under management

Assets under management stood at CHF 45.6 billion at 31 December 2015 (31.12.2014: CHF 50.2 billion). Client assets were down by CHF 1.0 billion due to currency factors and by CHF 3.3 billion on account of the sale of the swisspartners Group. Assets in own-managed funds declined by 2.6 percent to CHF 4.4 billion (31.12.2014: CHF 4.5 billion). Assets with discretionary mandates stood at CHF 6.4 billion (31.12.2014: CHF 8.6 billion) and other client assets under management amounted to CHF 34.8 billion (31.12.2014: CHF 37.1 billion).

The LLB Group registered net new money outflows of CHF 206 million (2014: minus CHF 350 million), confirming that outflows have steadily slowed in recent years. The Retail & Corporate Banking segment generated pleasing inflows of CHF 199 million. Predominantly private and corporate clients from the onshore markets entrusted the LLB Group with new money in this segment. The Private Banking and Institutional Clients market segments posted outflows of CHF 217 million and CHF 193 million. In these segments too, pleasing inflows were booked from the domestic and growth markets. However, money outflows were experienced as a result of the implementation of the tax compliance and cross-border strategy.

Assets under management (in CHF billions)

Assets under management (bar chart)

Outlook

The LLB Group assumes the economic environment will continue to be challenging in the 2016 business year. The strength of the Swiss Franc, negative interest rates, volatile financial markets and stricter regulation will again challenge the banks’ resilience. With its StepUp2020 strategy, the LLB Group has set its sights on sustainable, profitable growth. Thanks to its stable foundation, its focused business model and its clear strategy, it is confident of achieving further operative progress and a solid business result in the 2016 business year.