Segment reporting

(unaudited)

The business activities of the LLB Group are divided into the following three business areas. These form the basis for the segment reporting:

  • Retail & Corporate Banking segment encompasses the universal banking business in the home markets of Liechtenstein and Switzerland.
  • Private Banking segment encompasses all the private banking activities of the LLB Group.
  • Institutional Clients segment encompasses the financial intermediary and investment fund business as well as the asset management and wealth structuring activities of the LLB Group.

The segments receive comprehensive support from the Corporate Center. It comprises the following functions: finance, credit and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication, marketing, corporate development, as well as logistics and IT services.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Management (chief operating decision maker), which is responsible for allocating resources to the reportable segments and assessing their performance. All operating segments used by the LLB Group meet the definition of a reportable segment under IFRS 8.

In accordance with the principle of responsibility and based on the organisational structure, income and expenditure are allocated to the business divisions. Indirect costs resulting from services provided internally are accounted for according to the principle of causation and are recorded as a revenue increase for the service provider and as a cost increase for the service beneficiary. The remaining income and expenditure for overriding services which cannot be assigned to the segments are shown under Corporate Center. Furthermore, consolidation adjustments are reported under Corporate Center.

Transactions between the segments are executed at standard market conditions.

(XLSX:) Download
First half of 2019

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institutional Clients

 

Corporate Center

 

Total Group

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

Net interest income

 

45'575

 

21'187

 

10'949

 

4'903

 

82'613

Expected credit losses

 

3'278

 

464

 

0

 

0

 

3'743

Net interest income after expected credit losses

 

48'853

 

21'651

 

10'949

 

4'903

 

86'355

Net fee and commission income

 

16'117

 

39'886

 

50'869

 

–7'906

 

98'966

Net trading income

 

5'118

 

3'967

 

4'989

 

12'697

 

26'771

Net income from financial investments

 

0

 

0

 

0

 

6'028

 

6'028

Other income

 

1'055

 

1

 

–5

 

4'520

 

5'571

Total operating income *

 

71'142

 

65'505

 

66'803

 

20'241

 

223'691

Personnel expenses

 

–14'555

 

–18'513

 

–16'069

 

–45'901

 

–95'039

General and administrative expenses

 

–842

 

1'440

 

209

 

–37'567

 

–36'760

Depreciation

 

0

 

–67

 

–185

 

–20'182

 

–20'435

Services (from) / to segments

 

–26'378

 

–18'502

 

–15'145

 

60'024

 

0

Total operating expenses

 

–41'775

 

–35'642

 

–31'190

 

–43'626

 

–152'234

Operating profit before tax

 

29'367

 

29'863

 

35'613

 

–23'385

 

71'458

Tax expenses

 

 

 

 

 

 

 

 

 

–10'392

Net profit

 

 

 

 

 

 

 

 

 

61'065

(XLSX:) Download
First half of 2020

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institutional Clients

 

Corporate Center

 

Total Group

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

Net interest income

 

45'324

 

15'648

 

9'430

 

8'385

 

78'786

Expected credit losses

 

–6'173

 

–4'406

 

–3'198

 

0

 

–13'777

Net interest income after expected credit losses

 

39'152

 

11'242

 

6'232

 

8'385

 

65'010

Net fee and commission income

 

16'783

 

39'656

 

49'293

 

–6'301

 

99'432

Net trading income

 

4'879

 

6'283

 

8'023

 

27'324

 

46'509

Net income from financial investments

 

0

 

0

 

0

 

–1'905

 

–1'905

Other income

 

1'076

 

1

 

1

 

300

 

1'379

Total operating income *

 

61'890

 

57'182

 

63'549

 

27'802

 

210'424

Personnel expenses

 

–13'323

 

–18'623

 

–15'989

 

–41'275

 

–89'210

General and administrative expenses

 

–791

 

–1'065

 

–2'694

 

–28'333

 

–32'882

Depreciation

 

0

 

–64

 

–190

 

–20'798

 

–21'053

Services (from) / to segments

 

–27'602

 

–18'252

 

–14'501

 

60'356

 

0

Total operating expenses

 

–41'716

 

–38'005

 

–33'374

 

–30'050

 

–143'145

Operating profit before tax

 

20'175

 

19'177

 

30'175

 

–2'248

 

67'279

Tax expenses

 

 

 

 

 

 

 

 

 

–7'113

Net profit

 

 

 

 

 

 

 

 

 

60'166