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 assessing 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 2015

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

89'246

16'590

8'147

18'471

132'454

Credit loss (expense) / recovery

–57

0

–5'979

0

–6'036

Net interest income after credit loss expense

89'189

16'590

2'168

18'471

126'418

Net fee and commission income

28'124

66'766

56'907

–2'173

149'625

Net trading income

11'157

10'277

11'896

–246

33'084

Net income from financial investments at fair value

0

0

0

–736

–736

Share of net income of joint venture

0

0

0

–13

–13

Other income

543

2

1'584

2'656

4'785

Total operating income *

129'013

93'635

72'555

17'959

313'163

Personnel expenses

–31'741

–24'209

–15'575

–52'257

–123'782

General and administrative expenses

–2'607

–2'776

–2'985

–55'286

–63'653

Depreciation and amortisation

–321

0

0

–33'336

–33'657

Services (from) / to segments

–51'790

–25'592

–10'133

87'515

0

Total operating expenses

–86'459

–52'577

–28'693

–53'364

–221'093

Operating profit before tax

42'554

41'058

43'862

–35'405

92'070

Tax expenses

 

 

 

 

–5'770

Net profit

 

 

 

 

86'301

(XLS:) Download
Business year 2014 (restated) **

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.

**

The comparison period was adjusted on the basis of the restatement. See point 2.1 of the accounting principles.

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

–51'497

–23'956

Net income from financial investments at fair value

0

0

0

36'257

36'257

Share of net income of joint venture

0

0

0

19

19

Other income

800

31

–297

3'213

3'748

Total operating income *

114'718

100'281

102'346

24'125

341'470

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

–60'648

–28'795

–9'435

98'879

0

Total operating expenses

–94'986

–59'070

–57'268

–59'648

–270'973

Operating profit before tax

19'732

41'211

45'078

–35'523

70'497

Tax expenses

 

 

 

 

1'598

Net profit

 

 

 

 

72'095

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