Business segment result

The LLB Group reports income from financial investments, the structural contribution from interest business and the valuation of interest rate hedging instruments under the Corporate Center. The continuing low interest situation in the 2015 business year had an adverse impact on the structural contribution from interest business and income from trading business. Falling and in some cases negative interest earnings on bank investments, as well as negative interest on interest rate hedging instruments led to a decrease in interest business of 48.7 percent to CHF 18.5 million (2014: CHF 36.0 million). From the perspective of the reporting date, a valuation loss of CHF 10.1 million (2014: minus CHF 56.4 million) was incurred on interest rate swaps in 2015. Net trading income amounted to minus CHF 0.2 million (2014: minus CHF 51.5 million). At the same time, the valuation of financial investments resulted in a currency-related loss of CHF 0.7 million compared with a gain of CHF 36.3 million in the previous year. Operating income fell by 25.6 percent to CHF 18.0 million (2014: CHF 24.1 million).

Operating expenses fell by 10.5 percent to CHF 53.4 million (2014: CHF 59.6 million).

In total, the segment profit before tax of minus CHF 35.4 million was lower than in the previous year (2014: minus CHF 35.5 million).

The figures for the 2014 business year had to be restated (see Point 2.1 of the accounting principles).

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Segment reporting

in CHF thousands

2015

2014 (restated) *

+/− %

*

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

Net interest income

18'471

36'002

–48.7

Credit loss (expense) / recovery

0

0

 

Net interest income after credit loss expense

18'471

36'002

–48.7

Net fee and commission income

–2'173

131

 

Net trading income

–246

–51'497

–99.5

Net income from financial investments at fair value

–736

36'257

 

Share of net income of joint venture

–13

19

 

Other income

2'656

3'213

–17.3

Total operating income

17'959

24'125

–25.6

Personnel expenses

–52'257

–68'699

–23.9

General and administrative expenses

–55'286

–60'943

–9.3

Depreciation and amortisation

–33'336

–28'885

15.4

Services (from) / to segments

87'515

98'879

–11.5

Total operating expenses

–53'364

–59'648

–10.5

Segment profit before tax

–35'405

–35'523

–0.3

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Additional information

 

31.12.2015

31.12.2014

+/− %

Employees (full time equivalent, in positions)

372

378

–1.6