With a range of products and services, the LLB Group takes social responsibility for the future generations in its home markets of Liechtenstein and Switzerland. This applies to both private individuals and small and medium-sized enterprises (SMEs).
Risk-conscious growth in the mortgage lending business
The development of the real estate and mortgage market plays a key role in the economy. In Liechtenstein, LLB has a leadership position in the mortgage lending business with a market share of around 50 per cent. Bank Linth is an important partner for the people and economy of eastern Switzerland. To achieve sustained, profitable growth, the LLB Group focuses in Liechtenstein and Switzerland on the quality of the mortgage portfolio and risk-conscious growth carefully tuned to suit the region and the type of property. In 2018, mortgages accounted for 86.5 per cent (2017: 87.4 %) of loans granted by the LLB Group, corresponding to CHF 11.1 billion (2017: CHF 10.6 billion).
Financial planning for private clients and businesses
Changing asset structures, the growing diversity and complexity of financial instruments, the globalisation of financial markets and changes to pension provision are new aspects that we have to take account of. The need for professional and holistic private financial planning therefore continues to grow. In 2017, LLB further refined its “LLB Compass” service offering, which offers solutions for all stages of life and business. Bank Linth launched its comprehensive advisory service in Switzerland in spring 2017.
LLB offers three separate advisory packages for corporate clients. In the case of owners of small and medium-sized enterprises (SMEs), private and business assets are often closely interlinked. Our 360-degree financial planning covers all the important topics such as assets, financing, pension planning, real estate, taxes and estates.
LLB Pension Fund Foundation for Liechtenstein
An important element in integrated advisory and financial planning services for SMEs is occupational pension provision. With the LLB Pension Fund Foundation, we are the only bank in Liechtenstein able to offer clients an attractive pension fund solution and that since 2005. It has proved very popular: with a market share of around 40 per cent, the youngest pension fund in the Principality ranks as the number two among the collective foundations. It is therefore an essential pillar of the pension fund market in Liechtenstein. At the end of 2018, it had significantly increased pension fund assets under management to CHF 756 million (2017: CHF 732 million). It provided services to 450 (2017: 423) companies with 5'300 (2017: 5'360) active insured persons and had a liquidity ratio of 101 per cent (2017: 107 %). The LLB Pension Fund Foundation has a very good structural ratio: for each pensioner there are 15 active insured contributors (2017: 19 active insured contributors).
In order to be able to actively participate in shaping the legal framework, the LLB Pension Fund Foundation is represented on the Executive Board of the Liechtenstein Pension Scheme Association (LPKV) and is helping to develop the Liechtenstein pension fund market.
According to Liechtenstein’s Environmental, Social and Governance (ESG) Market Report of November 2016, LLB is the market leader in the Principality based on the number of its funds. The funds are managed by LLB Asset Management AG, the LLB Group’s investment competence centre. And this is done on the basis of the ESG rating of the individual investments in the funds; we obtain these ratings from MSCI ESG. ESG criteria are increasingly impacting the investment behaviour of both private and institutional investors.
Sustainable asset management
Our product range also includes “Sustainable asset management”, developed by the Asset Management Business Area of the LLB Group. When constructing a portfolio, we only consider securities with a favourable ESG rating based on MSCI. Sectors such as tobacco, alcohol, nuclear energy and armaments can be excluded from the portfolio if a client so wishes.