Notes to the consolidated income statement
Information checkedInformation geprüft Notes to the consolidated income statement
1Net interest income
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Interest income from financial instruments measured at amortised cost |
|
|
|
|
Due from banks |
5'684 |
18'811 |
– 69.8 |
|
Loans |
153'546 |
168'404 |
– 8.8 |
|
Loan commissions with the character of interest |
3'771 |
4'439 |
– 15.0 |
|
Financial liabilities |
19'951 |
17'287 |
15.4 |
|
Total interest income from financial instruments measured at amortised cost |
182'953 |
208'941 |
– 12.4 |
|
|
|
|
|
|
Interest income from financial instruments, recognised at fair value through other comprehensive income |
|
|
|
|
Debt instruments |
14'141 |
12'957 |
9.1 |
|
Total interest income from financial instruments, recognised at fair value through other comprehensive income |
14'141 |
12'957 |
9.1 |
|
|
|
|
|
|
Interest income from financial instruments at fair value through profit and loss |
|
|
|
|
Debt instruments |
5'193 |
8'680 |
– 40.2 |
|
Interest rate derivatives |
6'097 |
3'762 |
62.1 |
|
Total interest income from financial instruments at fair value through profit and loss |
11'290 |
12'442 |
– 9.3 |
|
|
|
|
|
|
Total interest income |
208'384 |
234'340 |
– 11.1 |
|
|
|
|
|
|
Interest expenses from financial instruments measured at amortised cost |
|
|
|
|
Due to banks |
– 3'830 |
– 696 |
450.1 |
|
Due to customers |
– 10'215 |
– 31'900 |
– 68.0 |
|
Financial assets |
– 15'255 |
– 20'214 |
– 24.5 |
|
Lease liabilities |
– 308 |
– 348 |
– 11.6 |
|
Debt issued |
– 6'204 |
– 9'307 |
– 33.3 |
|
Total interest expenses from financial instruments measured at amortised cost |
– 35'812 |
– 62'465 |
– 42.7 |
|
|
|
|
|
|
Interest expenses from financial instruments measured at fair value |
|
|
|
|
Interest rate derivatives |
– 18'475 |
– 20'611 |
– 10.4 |
|
Total interest expenses from financial instruments measured at fair value |
– 18'475 |
– 20'611 |
– 10.4 |
|
|
|
|
|
|
Total interest expenses |
– 54'287 |
– 83'076 |
– 34.7 |
|
|
|
|
|
|
Total net interest income |
154'097 |
151'264 |
1.9 |
2Net fee and commission income
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Brokerage fees |
53'293 |
47'032 |
13.3 |
|
Custody fees |
44'830 |
45'577 |
– 1.6 |
|
Advisory and management fees |
51'956 |
59'694 |
– 13.0 |
|
Investment fund fees |
155'084 |
152'366 |
1.8 |
|
Credit-related fees and commissions |
663 |
589 |
12.5 |
|
Commission income from other services |
27'025 |
34'414 |
– 21.5 |
|
Total fee and commission income |
332'850 |
339'672 |
– 2.0 |
|
|
|
|
|
|
Brokerage fees paid |
– 11'161 |
– 12'202 |
– 8.5 |
|
Other fee and commission expenses |
– 122'553 |
– 118'314 |
3.6 |
|
Total fee and commission expenses |
– 133'714 |
– 130'516 |
2.5 |
|
|
|
|
|
|
Total net fee and commission income |
199'136 |
209'156 |
– 4.8 |
LLB and its subsidiaries offer clients an all-in fee for various services. This is recognised in the line “Advisory and management fees”. The following table shows what share of the income position the all-in fee has and what proportion of which services is included in it:
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Total all-in-fees |
29'642 |
32'964 |
– 10.1 |
|
of which brokerage |
12'525 |
10'702 |
17.0 |
|
of which securities administration |
4'241 |
5'189 |
– 18.3 |
|
of which asset management |
12'876 |
17'073 |
– 24.6 |
3Net trading income
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Foreign exchange trading |
68'398 |
67'061 |
2.0 |
|
Foreign note trading |
– 110 |
– 482 |
– 77.2 |
|
Precious metals trading |
2'524 |
1'258 |
100.6 |
|
Interest rate instruments * |
13'481 |
11'069 |
21.8 |
|
Total net trading income |
84'294 |
78'906 |
6.8 |
* The LLB Group uses interest rate swaps for trading and hedging purposes. If the interest rate swaps do not fulfil the approval criteria according to IAS 39 in order to be booked as hedging transactions, they are treated as interest rate swaps for trading purposes.
4Net income from financial investments
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Financial investments at fair value through profit and loss |
|
|
|
|
Dividend income |
353 |
290 |
21.7 |
|
Price gains * |
– 2'853 |
1'257 |
|
|
Total net income from financial investments at fair value through profit and loss |
– 2'500 |
1'547 |
|
|
|
|
|
|
|
Financial investments, recognised at fair value through other comprehensive income |
|
|
|
|
Dividend income |
2'006 |
1'214 |
65.2 |
|
of which from financial investments held on the balance sheet date |
1'856 |
1'214 |
52.9 |
|
of which from financial investments sold during the reporting period ** |
150 |
0 |
|
|
Realised gain |
2 |
1'343 |
– 99.8 |
|
Expected credit loss on financial investments |
– 65 |
– 55 |
17.6 |
|
Total financial investments, recognised at fair value through other comprehensive income |
1'944 |
2'502 |
– 22.3 |
|
|
|
|
|
|
Total net income from financial investments at fair value |
– 556 |
4'049 |
|
* The realised price gains for 2020 amounted to CHF thousands minus 1'587 (previous year: CHF thousands minus 3'943).
** Further details are provided in note 15.
5Other income
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Net income from properties |
1'795 |
1'649 |
8.9 |
|
Adjustments on purchase price obligations from acquisitions |
0 |
3'296 |
– 100.0 |
|
Realised profits / (losses) from sales of tangible assets * |
1'625 |
1'487 |
9.2 |
|
Income from various services |
905 |
1'480 |
– 38.8 |
|
Share of income from associated companies and joint venture |
– 1 |
– 3 |
– 63.2 |
|
Additional other income |
651 |
461 |
41.1 |
|
Total other income |
4'975 |
8'371 |
– 40.6 |
* Contains income from sales of properties held for sale
6Personnel expenses
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Salaries * |
– 146'591 |
– 148'969 |
– 1.6 |
|
Pension and other post-employment benefit plans ** |
– 11'135 |
– 18'917 |
– 41.1 |
|
Other social contributions |
– 16'247 |
– 17'831 |
– 8.9 |
|
Training costs |
– 1'348 |
– 1'655 |
– 18.6 |
|
Other personnel expenses |
– 5'719 |
– 5'487 |
4.2 |
|
Total personnel expenses |
– 181'040 |
– 192'860 |
– 6.1 |
* Contains the variable compensation of the management, which is disclosed in detail in the compensation report as well as aggregated in note "Related party transactions".
** See note "Pension plans and other long-term benefits" for details
The average headcount of the LLB Group amounted to 1’076 full-time equivalent positions in the 2020 business year (previous year: 1'086 fulltime equivalent positions).
7General and administrative expenses
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Occupancy |
– 6'712 |
– 7'449 |
– 9.9 |
|
Expenses for IT, machinery and other equipment |
– 32'961 |
– 27'052 |
21.8 |
|
Information and communication expenses |
– 18'725 |
– 19'355 |
– 3.3 |
|
Marketing and public relations |
– 7'386 |
– 9'320 |
– 20.8 |
|
Consulting and audit fees |
– 7'113 |
– 5'725 |
24.2 |
|
Provisions for legal and litigation risks * |
1'987 |
4'724 |
– 57.9 |
|
Litigation, legal and representation costs |
– 1'772 |
– 2'155 |
– 17.8 |
|
Contributions to Deposit Protection Fund |
– 2'766 |
– 1'908 |
45.0 |
|
Other general and administrative expenses |
– 7'924 |
– 8'308 |
– 4.6 |
|
Total general and administrative expenses |
– 83'371 |
– 76'547 |
8.9 |
* See note 26 for details
8Depreciation
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Property |
– 4'753 |
– 4'919 |
– 3.4 |
|
Equipment |
– 9'655 |
– 8'934 |
8.1 |
|
Intangible assets |
– 22'977 |
– 23'334 |
– 1.5 |
|
Right of use assets |
– 4'866 |
– 4'737 |
2.7 |
|
Total depreciation |
– 42'251 |
– 41'925 |
0.8 |
9Tax expenses
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Current taxes |
– 14'304 |
– 17'425 |
– 17.9 |
|
Deferred taxes * |
484 |
– 613 |
|
|
Total tax expenses |
– 13'820 |
– 18'038 |
– 23.4 |
* For further details, see note 25
The actual net payments made by the LLB Group for domestic and foreign corporate profit taxes amounted to CHF 14.6 million for the 2020 financial year (previous year: CHF 18.1 million).
The tax on pre-tax Group profit deviates from the theoretical amount, calculated on the basis of the weighted average Group tax rate on profit before tax, as follows:
|
in CHF thousands |
2020 |
2019 |
+ / – % |
|
Operating profit before tax |
123'643 |
141'416 |
– 12.6 |
|
Assumed average income tax rate of 12.6 per cent (previous year: 13.1 %) |
– 15'620 |
– 18'526 |
– 15.7 |
|
|
|
|
|
|
Increase / (Decrease) resulting from |
|
|
|
|
Use of losses carried forward |
506 |
570 |
– 11.2 |
|
Tax savings / (charges) from previous years |
– 488 |
– 754 |
– 35.2 |
|
Non-tax deductible (expenses) / tax-exempt income * |
1'782 |
672 |
165.2 |
|
Total tax expenses |
– 13'820 |
– 18'038 |
– 23.4 |
* These resulted from, inter alia, the notional interest deduction, the valuation of the LLB shares and from investment fund business.
The assumed average tax burden is based on the weighted average tax rates of the individual companies.
10Earnings per share
|
|
2020 |
2019 |
+ / – % |
|
Net profit attributable to the shareholders of LLB (in CHF thousands) |
103'524 |
115'274 |
– 10.2 |
|
Weighted average shares outstanding |
30'493'736 |
30'560'789 |
– 0.2 |
|
Basic earnings per share (in CHF) |
3.39 |
3.77 |
– 10.0 |
|
|
|
|
|
|
Net profit for diluted earnings per share attributable to the shareholders of LLB (in CHF thousands) |
103'524 |
115'274 |
– 10.2 |
|
Weighted average shares outstanding for diluted earnings per share |
30'665'525 |
30'767'265 |
– 0.3 |
|
Diluted earnings per share (in CHF) |
3.38 |
3.75 |
– 9.9 |
|
|
|
|
|
|
Dividend (in CHF) |
* 2.20 |
2.20 |
|
* Proposal of the Board of Directors to the General Meeting of Shareholders on 7 May 2021