A good equity base not only protects its reputation, but is also part of the financial management and credibility of a bank. Having a sufficiently high-quality equity base at its disposal is part of the LLB Group’s identity. The LLB Group’s financial strength shall remain, as far as possible, unaffected by fluctuations in the capital markets.
We simulate external influences and analyse how these affect our capital base using scenario analyses and stress tests and, where necessary, we take measures to limit risks.
Solid equity base
LLB is considered to be of systemic importance to the Liechtenstein economy and subject to a regulatory minimum capital adequacy ratio of 13 percent. We are targeting a Tier 1 ratio of over 14 percent as a strategic objective.
As at the end of 2017, the LLB Group had CHF 1.9 billion in equity capital (31.12.2016: CHF 1.8 billion). At 22.2 percent (31.12.2016: 21.0%), LLB’s Tier 1 ratio is well above the regulatory requirement.
The LLB Group continues to enjoy a high level of financial stability and security on account of its solid equity base, which consists entirely of hard core capital. The comfortable capital situation gives the LLB Group leeway to make acquisitions (see chapter “Strategy and organisation”).