Private Banking Segment

Private Banking

The Private Banking Division of the LLB Group combines advisory quality and investment competence with modern technology. The focus lies on the onshore markets of Liechtenstein, Switzerland and Austria, the traditional cross-border markets in Germany and Western Europe, as well as the growth markets in Central and Eastern Europe and the Middle East. In addition, the Private Banking Division is responsible for groupwide product management. The Private Banking Division offers international clients investment advice, wealth management, asset structuring, financing facilities, as well as financial and retirement planning. These services are provided at its three banks in Liechtenstein (Vaduz), Switzerland (Uznach) and Austria (Vienna), as well as at the bank branches of LLB AG in Liechtenstein and at the business locations of Bank Linth in eastern Switzerland. In addition, the Private Banking Division is represented through branches at Zurich-Erlenbach and Geneva, as well as in Abu Dhabi and Dubai.

Business segment result

At CHF 19.2 million, the profit before tax of the Private Banking segment was lower than the previous year’s result. This was attributable, on the one hand, to the lower earnings in interest differential business due to the plunge in US dollar interest rates, and on the other, to the allocation of provisions for expected credit losses. Moreover, operating expenses increased to CHF 38.0 million. In the previous year, the release of provisions had a positive effect on the interim result. Adjusted to take into consideration these effects, operating expenses decreased by 7.7 per cent in comparison with the equivalent period in the previous year. On account of the performance of the market, client assets under management fell to CHF 18.2 billion. The segment posted gratifying net new money inflows, especially in the home market of Austria. A total net new money inflow of CHF 171 million was attained.

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Segment reporting

in CHF thousands

 

First half 2020

 

First half 2019

 

+/− %

Net interest income

 

15'648

 

21'187

 

–26.1

Expected credit losses

 

–4'406

 

464

 

 

Net interest income after expected credit losses

 

11'242

 

21'651

 

–48.1

Net fee and commission income

 

39'656

 

39'886

 

–0.6

Net trading income

 

6'283

 

3'967

 

58.4

Other income

 

1

 

1

 

44.9

Total operating income

 

57'182

 

65'505

 

–12.7

Personnel expenses

 

–18'623

 

–18'513

 

0.6

General and administrative expenses

 

–1'065

 

1'440

 

 

Depreciation

 

–64

 

–67

 

–4.4

Services (from) / to segments

 

–18'252

 

–18'502

 

–1.3

Total operating expenses

 

–38'005

 

–35'642

 

6.6

Segment profit before tax

 

19'177

 

29'863

 

–35.8

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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) *

 

69.5

 

72.2

Cost-Income-Ratio (in per cent) **

 

61.7

 

59.0

Net new money (in CHF millions)

 

171

 

72

Growth of net new money (in per cent)

 

1.0

 

0.4

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Additional information

 

 

30.06.2020

 

31.12.2019

 

+/− %

Business volume (in CHF millions)

 

18'224

 

18'743

 

–2.8

Assets under management (in CHF millions)

 

16'419

 

16'859

 

–2.6

Loans (in CHF millions)

 

1'805

 

1'884

 

–4.2

Employees (full-time equivalents, in positions)

 

188

 

185

 

1.8