Performance mandate

The Principality of Liechtenstein is the majority shareholder in the LLB with 57.5 percent of the share capital. This ownership situation is unique in Liechtenstein. Sustainable business management is part of the performance mandate and the principles governing corporate strategy of the Liechtensteinische Landesbank. At the same time, social commitment has always been a significant part of our corporate identity. Our activities are in line with our statutory mandate: according to Art. 3 of the Law on the Liechtensteinische Landesbank (LLBG) of 21 October 1992 and under the investment strategy of the Government of the Principality of Liechtenstein of 22 November 2011, the LLB is mandated with the social responsibility of promoting Liechtenstein’s economic development while at the same time still taking ethical and ecological factors into account.

Pillar of stability

The Principality of Liechtenstein is among thirteen countries worldwide with an AAA rating. On 26 February 2016, Standard & Poor’s (S & P) reconfirmed its best rating for the country’s creditworthiness. Liechtenstein has no national debt, instead it has large reserves thanks to the state’s budgetary discipline. A functioning banking sector and stable financial center with strong international connections contribute substantially to the financial results of the state.

The financial services sector, accounting for around 24 percent of GDP, is the most important sector in the Liechtenstein economy after industry. Liechtenstein banks are particularly distinguished by their financial stability. They have solid and high-quality equity capital resources and already today meet the core capital ratio required from 2019 under Basel III regulations.

At the same time, banks such as the LLB Group support private persons, municipalities as well as small and medium-sized enterprises to finance their plans for the future, they indirectly promote the workplace and contribute to the prosperity of the people. The LLB is the market leader in the private client business and, as a business bank, enjoys the confidence of business and industry (see chapter “Retail & corporate banking”). With the LLB Liechtenstein Pension Fund Foundation competence center, it is also a strong pillar in the domestic pension fund market (see chapter “Clients and markets”).

Economic contribution

The LLB Group bases its business policy on market principles and pursues the objective of generating a reasonable profit. The Principality of Liechtenstein and its population participate in profits through regular distributions. The economic contribution – dividends, direct taxes and the compensation payment for the state guarantee – of the LLB Group amounted in 2015 to CHF 31.7 million (2014: CHF 34.7 million). The LLB receives no financial support for its banks or Group companies in Liechtenstein, Switzerland and Austria from any government.

The LLB’s clients benefit from additional security, for which the LLB makes a yearly compensation payment to the country of CHF 1.3 million. The LLB is the only bank in Liechtenstein which carries a state guarantee for savings account deposits and medium-term notes (cash bonds). This is governed by the Law of 21 October 1992 on the Liechtensteinische Landesbank (LLBG). According to Art. 5 of the LLBG, the Principality of Liechtenstein is liable for savings account deposits at the Landesbank and for medium-term notes (cash bonds) of the Landesbank, insofar as the bank’s own resources are not sufficient.

The LLB and Bank Linth are partners to private and corporate clients in all phases of life and of the corporate life cycle as well as being employers and customers to regional suppliers and partners. The LLB is also the market leader in the Liechtenstein mortgage market (see chapter “Clients and markets”). We contribute to community life in Liechtenstein and eastern Switzerland through sponsorship (see chapter “Brand and sponsoring”).