Objectives

The LLB Group had set itself three financial targets with the Focus2015 strategy:

  • Tier 1 ratio of over 16 percent.
  • Cost-income ratio of under 60 percent.
  • From 2013 to 2015, a cumulative net profit for the LLB Group of more than CHF 300 million.

In 2015, we exceeded our target for the Tier 1 ratio, or core equity capital ratio, at 20.6 percent. This figure is convincing proof of our stability and our solid equity base. At the same time, the high Tier 1 ratio allows us strategic room to manoeuvre. With our cost-income ratio of 69.5 percent, we did not fully meet expectations. This is primarily due to market effects. If we exclude market effects, we can see a continual improvement in the cost-income ratio.

The same applies to our cumulative Group net profit over the past three years. At CHF 212.2 million, we have not attained our target. We were disciplined on the cost side, reducing operating expenses to below the target level of CHF 240 million and the number of full-time equivalents to under 840. On the income side, income was significantly impacted by the abandonment of the minimum exchange rate of the Swiss franc to the euro and the negative interest rate situation in the market.

Following the completion of Focus2015, we have reached a crucial point in the development of the LLB Group. After a refocusing phase, our growth ambitions as part of StepUp2020 mark a turning point.

Under the StepUp2020 strategy, the LLB Group will focus on four new financial targets until the end of 2020:

  • Increase in business volume to more than CHF 70 billion.
  • Cost-income ratio of under 65 percent.
  • From 2016 to 2020, a cumulative net profit for the LLB Group of more than CHF 500 million.
  • Tier 1 ratio of over 14 percent.