Segment reporting
Information checkedInformation geprüft Segment reporting
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 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 and 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.
Financial year 2019
|
in CHF thousands |
Retail & Corporate Banking |
Private Banking |
Institutional Clients |
Corporate Center |
Total Group |
|
Net interest income |
93'151 |
40'299 |
21'310 |
– 3'496 |
151'264 |
|
Expected credit losses |
731 |
486 |
– 215 |
0 |
1'002 |
|
Net interest income after expected credit losses |
93'882 |
40'785 |
21'095 |
– 3'496 |
152'266 |
|
Net fee and commission income |
31'806 |
82'973 |
105'195 |
– 10'818 |
209'156 |
|
Net trading income |
10'921 |
8'460 |
10'149 |
49'376 |
78'906 |
|
Net income from financial investments |
0 |
0 |
0 |
4'049 |
4'049 |
|
Other income |
2'208 |
2 |
– 3 |
6'165 |
8'371 |
|
Total operating income * |
138'817 |
132'220 |
136'436 |
45'275 |
452'748 |
|
Personnel expenses |
– 28'698 |
– 37'238 |
– 32'650 |
– 94'274 |
– 192'860 |
|
General and administrative expenses |
– 1'924 |
1'837 |
– 1'127 |
– 75'332 |
– 76'547 |
|
Depreciation |
0 |
– 134 |
– 377 |
– 41'413 |
– 41'925 |
|
Services (from) / to segments |
– 52'575 |
– 37'072 |
– 29'979 |
119'626 |
0 |
|
Total operating expenses |
– 83'197 |
– 72'608 |
– 64'133 |
– 91'394 |
– 311'332 |
|
Operating profit before tax |
55'620 |
59'612 |
72'303 |
– 46'119 |
141'416 |
|
Tax expenses |
|
|
|
|
– 18'038 |
|
Net profit |
|
|
|
|
123'378 |
* There were no substantial earnings generated between the segments so that income between the segments is not material.
Financial year 2020
|
in CHF thousands |
Retail & Corporate Banking |
Private Banking |
Institutional Clients |
Corporate Center |
Total Group |
|
Net interest income |
91'216 |
25'739 |
14'943 |
22'199 |
154'097 |
|
Expected credit losses |
– 4'120 |
– 4'365 |
– 3'155 |
0 |
– 11'640 |
|
Net interest income after expected credit losses |
87'096 |
21'374 |
11'788 |
22'199 |
142'457 |
|
Net fee and commission income |
33'059 |
81'102 |
98'088 |
– 13'112 |
199'136 |
|
Net trading income |
10'092 |
11'906 |
14'620 |
47'676 |
84'294 |
|
Net income from financial investments |
0 |
0 |
0 |
– 556 |
– 556 |
|
Other income |
2'258 |
3 |
2 |
2'712 |
4'975 |
|
Total operating income * |
132'504 |
114'384 |
124'499 |
58'919 |
430'306 |
|
Personnel expenses |
– 27'224 |
– 36'484 |
– 31'687 |
– 85'645 |
– 181'040 |
|
General and administrative expenses |
– 1'572 |
– 2'478 |
– 6'568 |
– 72'753 |
– 83'371 |
|
Depreciation |
0 |
– 128 |
– 381 |
– 41'742 |
– 42'251 |
|
Services (from) / to segments |
– 56'252 |
– 38'087 |
– 27'309 |
121'648 |
0 |
|
Total operating expenses |
– 85'049 |
– 77'177 |
– 65'946 |
– 78'492 |
– 306'663 |
|
Operating profit before tax |
47'455 |
37'207 |
58'553 |
– 19'573 |
123'643 |
|
Tax expenses |
|
|
|
|
– 13'820 |
|
Net profit |
|
|
|
|
109'823 |
* There were no substantial earnings generated between the segments so that income between the segments is not material.
There were no revenues deriving from transactions with a single external customer that amounted to ten per cent or more of the Group’s revenues.
Segment reporting by geographic location
The geographic analysis of operating income and assets is based on the location of the company in which the transactions and assets are recorded.
Financial year 2019
|
|
|
|
|
|
|
|
|
|
|
|
Liechtenstein |
Switzerland |
Austria |
Total Group |
||||
|
|
|
in % |
|
in % |
|
in % |
|
in % |
|
Operating income (in CHF thousands) |
260'042 |
57.4 |
118'647 |
26.2 |
74'059 |
16.4 |
452'748 |
100.0 |
|
Total assets (in CHF millions) |
12'539 |
55.3 |
7'974 |
35.2 |
2'149 |
9.5 |
22'662 |
100.0 |
Financial year 2020
|
|
|
|
|
|
|
|
|
|
|
|
Liechtenstein |
Switzerland |
Austria |
Total Group |
||||
|
|
|
in % |
|
in % |
|
in % |
|
in % |
|
Operating income (in CHF thousands) |
259'968 |
60.4 |
108'619 |
25.2 |
61'719 |
14.3 |
430'306 |
100.0 |
|
Total assets (in CHF millions) |
12'817 |
54.4 |
8'403 |
35.6 |
2'355 |
10.0 |
23'575 |
100.0 |