The consolidated financial statement is prepared in accordance with the International Financial Reporting Standards (IFRS).
In the 2016 business year, the LLB Group earned a net profit of CHF 103.9 million (2015 business year: CHF 86.3 million). The net profit for 2016 therefore improved in comparison with the previous year by 20.4 percent or CHF 17.6 million.
In comparison with 2015, operating income rose by 18.7 percent and operating expenses by 16.8 percent. The net profit attributable to the shareholders of LLB amounted to CHF 98.2 million (2015: CHF 82.7 million). Earnings per share stood at CHF 3.40 (2015: CHF 2.87).
Assets under management
Assets under management at 31 December 2016 stood at CHF 46.4 billion (31.12.2015: CHF 45.6 billion). The LLB Group attained a performance-related increase in assets under management of 1.9 percent. Assets in own-managed funds climbed by 3.5 percent to CHF 4.6 billion (31.12.2015: CHF 4.4 billion) and assets with discretionary mandates by 2.3 percent to CHF 6.5 billion (31.12.2015: CHF 6.4 billion). Other assets under management amounted at 31 December 2016 to CHF 35.3 billion (31.12.2015: CHF 34.8 billion).
The LLB Group registered net new money outflows of CHF 65 million (2015: minus CHF 206 million). Outflows have therefore slowed down. In contrast, however, the Retail & Corporate Banking segment generated very robust inflows of CHF 334 million from private and corporate clients in the domestic Swiss and Liechtenstein markets. And the Private Banking segment also posted gratifying inflows totalling CHF 173 million, especially from the strategic growth markets. On account of individual larger outflows with public institutions and in cross-border business, net new money inflows in the Institutional Clients segment amounted to minus CHF 568 million.
The LLB Group is confronted with economic and industry-specific challenges. The business environment is marked by the strength of the Swiss franc, negative interest rates and volatile financial markets. This is exacerbated by political uncertainties, increasing regulation and the accelerated pace of change with information technology, which will continue to challenge the banking industry. Thanks to its focused business model and its clear StepUp2020 strategy, the LLB Group views the future with confidence. In spite of the challenging business conditions, it expects to achieve further operative progress and a solid business result in the 2017 business year.