Institutional Clients Segment

Intermediary and investment fund business, asset management

The Institutional Clients Division encompasses the intermediary and investment fund business, as well as asset management services. The LLB Group unites four investment fund management companies under one corporate roof. In its three home markets of Liechtenstein, Austria and Switzerland, it operates as a dynamic, versatile fund powerhouse. The focus lies on providing private label fund solutions. The LLB teams of experts for the care of fiduciaries, external asset managers, insurance companiesand public institutions are distinguished by their holistic, partner-like client orientation. LLB Asset Management AG fulfils a central role within the LLB Group. Its award-winning, outstanding investment competence is one of the Group’s great strengths. At the Refinitiv Lipper Group Awards in April 2019, LLB was named European champion in the “Overall Small Company” category.

Business segment result

At CHF 63.5 million, the operating income of the Institutional Clients segment was slightly under the result of the equivalent period in the previous year. The plunge in US dollar interest rates together with the allocation of provisions for expected credit losses adversely affected interest income after expected credit losses. In contrast, on account of higher trading activity, trading income developed positively and was CHF 3.0 million above the previous year’s figure. Operating expenses climbed to CHF 33.4 million. The release of provisions was included in the equivalent period for the previous year. Adjusted to consider this effect, operating expenses were slightly below the previous year’s level. At CHF 435 million, the segment once again posted high net new money inflows.

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Segment reporting

in CHF thousands

 

First half 2020

 

First half 2019

 

+/− %

Net interest income

 

9'430

 

10'949

 

–13.9

Expected credit losses

 

–3'198

 

0

 

 

Net interest income after expected credit losses

 

6'232

 

10'949

 

–43.1

Net fee and commission income

 

49'293

 

50'869

 

–3.1

Net trading income

 

8'023

 

4'989

 

60.8

Other income

 

1

 

–5

 

 

Total operating income

 

63'549

 

66'803

 

–4.9

Personnel expenses

 

–15'989

 

–16'069

 

–0.5

General and administrative expenses

 

–2'694

 

209

 

 

Depreciation

 

–190

 

–185

 

2.7

Services (from) / to segments

 

–14'501

 

–15'145

 

–4.2

Total operating expenses

 

–33'374

 

–31'190

 

7.0

Segment profit before tax

 

30'175

 

35'613

 

–15.3

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Performance figures

 

 

First half 2020

 

First half 2019

*

Operating income (excluding expected credit losses) relative to average monthly business volumes.

**

Operating expenses (excluding provisions for legal and litigation risks) in relation to operating income (excluding expected credit losses).

Gross margin (in basis points) *

 

28.3

 

29.1

Cost-Income-Ratio (in per cent) **

 

50.0

 

50.8

Net new money (in CHF millions)

 

435

 

1'727

Growth of net new money (in per cent)

 

0.9

 

4.1

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Additional information

 

 

30.06.2020

 

31.12.2019

 

+/− %

Business volume (in CHF millions)

 

48'069

 

50'694

 

–5.2

Assets under management (in CHF millions)

 

47'598

 

50'182

 

–5.2

Loans (in CHF millions)

 

472

 

512

 

–7.8

Employees (full-time equivalents, in positions)

 

178

 

172

 

3.7