Retail & Corporate Banking Segment

Private and corporate clients

The Retail & Corporate Banking Division of the LLB Group offers the entire spectrum of banking and financial services for private and corporate clients in Liechtenstein and Switzerland at all phases of life and the business cycle. Traditionally, savings and mortgage lending business has always played a very important role. This is supplemented by financial planning and corporate pension provisioning.

In addition, the Retail & Corporate Banking Division provides specific investment advice and asset management to clients having available assets of up to CHF 0.5 million. At the same time, the LLB Group offers services for small and medium-sized enterprises (SMEs). Retail & Corporate Banking combines modern bank branches with mobile and web-based services. It has three branches in Liechtenstein and 20 in the Swiss regions of Linthgebiet, Zürichsee, Sarganserland, Ausserschwyz, Winterthur and Thurgau.

Business segment result

Interest differential business, which comprises the largest part of earnings in private and corporate client business, developed positively in spite of the persisting pressure on margins and, at CHF 45.3 million, attained the same level as in the previous year. In contrast to the release of provisions in the previous year, provisions had to be allocated this year for expected credit losses. This is reflected in the lower profit before taxes. In spite of further investments in the branch and distribution network, operating expenses were marginally lower at CHF 41.7 million. Thanks to net new money inflows of CHF 422 million in both the home markets of Switzerland and Liechtenstein, as well as continued growth in mortgage lending business, the business volume rose by 1.5 per cent to CHF 20.2 billion.

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Segment reporting

in CHF thousands

 

First half 2020

 

First half 2019

 

+/− %

Net interest income

 

45'324

 

45'575

 

–0.5

Expected credit losses

 

–6'173

 

3'278

 

 

Net interest income after expected credit losses

 

39'152

 

48'853

 

–19.9

Net fee and commission income

 

16'783

 

16'117

 

4.1

Net trading income

 

4'879

 

5'118

 

–4.7

Other income

 

1'076

 

1'055

 

2.1

Total operating income

 

61'890

 

71'142

 

–13.0

Personnel expenses

 

–13'323

 

–14'555

 

–8.5

General and administrative expenses

 

–791

 

–842

 

–6.1

Depreciation

 

0

 

0

 

 

Services (from) / to segments

 

–27'602

 

–26'378

 

4.6

Total operating expenses

 

–41'716

 

–41'775

 

–0.1

Segment profit before tax

 

20'175

 

29'367

 

–31.3

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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) *

 

68.0

 

68.9

Cost-Income-Ratio (in per cent) **

 

61.3

 

61.6

Net new money (in CHF millions)

 

422

 

205

Growth of net new money (in per cent)

 

4.5

 

2.4

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Additional information

 

 

30.06.2020

 

31.12.2019

 

+/− %

Business volume (in CHF millions)

 

20'223

 

19'915

 

1.5

Assets under management (in CHF millions)

 

9'463

 

9'280

 

2.0

Loans (in CHF millions)

 

10'760

 

10'635

 

1.2

Employees (full-time equivalents, in positions)

 

180

 

182

 

–1.0