Corporate Center Segment

Controlling processes and risks

The Corporate Center bundles central functions within the LLB Group and supports the market-oriented divisions in conducting their activities and implementing their strategies. The focus lies on functions in the areas of communication, marketing, human resources, finance, risk and credit management, IT, trading, securities administration and payment services, corporate development, as well as legal and compliance services.

The Corporate Center of the LLB Group steers, coordinates and monitors groupwide business activities, processes and risks. It ensures the Group’s corporate development and its digital transformation, as well as enhancing the efficiency and quality of the services the LLB Group delivers.

Business segment result

Under the Corporate Center, the LLB Group reports the structural contribution from interest business, the valuation of interest rate hedging instruments and income from financial investments. Operating income rose by CHF 7.6 million to CHF 27.8 million. The increase was mainly attributable to the higher valuation of interest rate hedging instruments measured on the reporting date. General and administrative expenses decreased by CHF 9.2 million, largely due to the release of provisions (allocated in the previous year) as the result of a settlement reached in a legal case. Operating expenses fell by 31.1 per cent to CHF 30.1 million.

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Segment reporting

in CHF thousands

 

First half 2020

 

First half 2019

 

+/− %

Net interest income

 

8'385

 

4'903

 

71.0

Expected credit losses

 

0

 

0

 

 

Net interest income after expected credit losses

 

8'385

 

4'903

 

71.0

Net fee and commission income

 

–6'301

 

–7'906

 

–20.3

Net trading income

 

27'324

 

12'697

 

115.2

Net income from financial investments

 

–1'905

 

6'028

 

 

Other income

 

300

 

4'520

 

–93.4

Total operating income

 

27'802

 

20'241

 

37.4

Personnel expenses

 

–41'275

 

–45'901

 

–10.1

General and administrative expenses

 

–28'333

 

–37'567

 

–24.6

Depreciation

 

–20'798

 

–20'182

 

3.1

Services (from) / to segments

 

60'356

 

60'024

 

0.6

Total operating expenses

 

–30'050

 

–43'626

 

–31.1

Segment profit before tax

 

–2'248

 

–23'385

 

–90.4

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Additional information

 

 

30.06.2020

 

31.12.2019

 

+/− %

Employees (full-time equivalents, in positions)

 

529

 

539

 

–1.8