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LLB Annual Report 2022 de

Notes to the consolidated income statement

Information checkedInformation unaudited Information geprüft Information ungeprüft Notes to the consolidated income statement 

1Net interest income

in CHF thousands

2022

2021

+ / – %

Interest income from financial instruments measured at amortised cost

 

 

 

Due from banks

14'794

731

 

Loans

162'406

147'643

10.0

Debt instruments

977

 

 

Loan commissions with the character of interest

2'913

3'386

– 14.0

Received negative interest

22'654

27'923

– 18.9

Total interest income from financial instruments measured at amortised cost

203'745

179'683

13.4

 

 

 

 

Interest income from financial instruments, recognised at fair value through other comprehensive income

 

 

 

Debt instruments

18'679

11'816

58.1

Total interest income from financial instruments, recognised at fair value through other comprehensive income

18'679

11'816

58.1

 

 

 

 

Interest income from financial instruments at fair value through profit and loss

 

 

 

Debt instruments

1'083

2'810

– 61.5

Interest rate derivatives

18'264

3'540

415.9

Total interest income from financial instruments at fair value through profit and loss

19'347

6'350

204.7

 

 

 

 

Total interest income

241'771

197'850

22.2

 

 

 

 

Interest expenses from financial instruments measured at amortised cost

 

 

 

Due to banks

– 7'362

– 1'921

283.2

Due to customers

– 37'837

– 3'679

928.5

Paid negative interest

– 13'729

– 20'392

– 32.7

Lease liabilities

– 240

– 273

– 12.3

Debt issued

– 5'187

– 4'509

15.0

Total interest expenses from financial instruments measured at amortised cost

– 64'354

– 30'774

109.1

 

 

 

 

Interest expenses from financial instruments measured at fair value

 

 

 

Interest rate derivatives

– 25'170

– 13'065

92.6

Total interest expenses from financial instruments measured at fair value

– 25'170

– 13'065

92.6

 

 

 

 

Total interest expenses

– 89'524

– 43'839

104.2

 

 

 

 

Total net interest income

152'247

154'010

– 1.1

2Net fee and commission income

in CHF thousands

2022

2021

+ / – %

Brokerage fees

44'524

54'382

– 18.1

Custody fees

52'327

54'576

– 4.1

Advisory and management fees

55'290

65'463

– 15.5

Investment fund fees

157'251

194'843

– 19.3

Credit-related fees and commissions

736

648

13.6

Commission income from other services

33'761

29'722

13.6

Total fee and commission income

343'889

399'634

– 13.9

 

 

 

 

Brokerage fees paid

– 10'298

– 11'180

– 7.9

Other fee and commission expenses

– 122'644

– 154'816

– 20.8

Total fee and commission expenses

– 132'942

– 165'996

– 19.9

 

 

 

 

Total net fee and commission income

210'947

233'638

– 9.7

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

2022

2021

+ / – %

Total all-in-fees

31'974

40'599

– 21.2

of which brokerage

11'626

15'126

– 23.1

of which securities administration

2'958

6'225

– 52.5

of which asset management

17'391

19'248

– 9.6

3Net trading income

in CHF thousands

2022

2021

+ / – %

Foreign exchange trading

129'319

68'295

89.4

Foreign note trading

– 350

– 542

– 35.5

Precious metals trading

2'211

1'773

24.7

Interest rate instruments 1

4'969

9'439

– 47.4

Total net trading income

136'149

78'966

72.4

1 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

2022

2021

+ / – %

Financial investments at fair value through profit and loss

 

 

 

Dividend income

566

292

93.5

Price gains 1

– 6'965

– 631

 

Total net income from financial investments at fair value through profit and loss

– 6'399

– 338

 

 

 

 

 

Financial investments, recognised at fair value through other comprehensive income

 

 

 

Dividend income

5'693

3'219

76.8

of which from financial investments held on the balance sheet date

5'514

3'211

71.7

of which from financial investments sold during the reporting period 2

179

9

 

Realised gain

– 227

865

 

Total net income from financial investments, recognised at fair value through other comprehensive income

5'466

4'084

33.8

 

 

 

 

Total net income from financial investments at fair value

– 933

3'746

 

1 The realised price gains for 2022 amounted to minus CHF thousands 1'347 (2021: minus CHF thousands 157).

2 Further details are provided in note 15.

5Other income

in CHF thousands

2022

2021

+ / – %

Net income from properties 1

2'014

2'207

– 8.7

Income from various services

– 554

488

 

Share of income from associated companies and joint venture

3

3

– 2.5

Additional other income 2

6'036

876

588.9

Total other income

7'499

3'574

109.8

1 In the 2022 business year, net income from properties consisted of rental income and the profit from the sale of properties (2021: rental income and revaluation of an investment property).

2 Contains the sale of a value-adjusted claim amounting to CHF 5.6 million in 2022

6Personnel expenses

in CHF thousands

2022

2021

+ / – %

Salaries 1

– 156'237

– 149'184

4.7

Pension and other post-employment benefit plans 2

– 16'935

– 17'106

– 1.0

Other social contributions

– 17'259

– 16'486

4.7

Training costs

– 1'772

– 1'383

28.2

Other personnel expenses

– 3'945

– 5'833

– 32.4

Total personnel expenses

– 196'148

– 189'991

3.2

1 Contains the variable compensation of the management, which is disclosed in note "Related party transactions".

2 See note "Pension plans and other long-term benefits" for details

An overview of the employees and their employment relationship is shown in the following table:

 

2022

2021

Employees

 

 

Number of employees (full-time equivalents)

1'080

1'055

Full-time employees

918

902

of which apprentices

26

28

of which young talents 1

14

11

Part-time employees

353

317

1 Includes all working students in master's studies, trainees with master's degree and direct entrants with bachelor's degree. All young talents have temporary employment contracts.

7General and administrative expenses

in CHF thousands

2022

2021

+ / – %

Occupancy

– 6'265

– 6'630

– 5.5

Expenses for IT, machinery and other equipment

– 30'436

– 26'926

13.0

Information and communication expenses

– 20'955

– 19'305

8.5

Marketing and public relations

– 11'334

– 7'357

54.0

Consulting and audit fees

– 9'488

– 6'637

43.0

Provisions for legal and litigation risks 1

– 4'503

– 952

373.0

Litigation, legal and representation costs

– 2'376

– 4'940

– 51.9

Contributions to Deposit Protection Fund

– 3'231

– 2'661

21.4

Other general and administrative expenses

– 7'430

– 8'037

– 7.6

Total general and administrative expenses

– 96'017

– 83'445

15.1

1 See note 25 for details

8Depreciation

in CHF thousands

2022

2021

+ / – %

Property

– 4'485

– 4'428

1.3

Other equipment

– 9'032

– 10'627

– 15.0

Intangible assets

– 17'313

– 18'531

– 6.6

Right of use assets

– 5'236

– 5'968

– 12.3

Total depreciation

– 36'066

– 39'555

– 8.8

9Tax expenses

in CHF thousands

2022

2021

+ / – %

Current taxes

– 31'504

– 25'682

22.7

Deferred taxes

5'993

133

 

Total tax expenses

– 25'511

– 25'549

– 0.1

1 For further details, see note 24

The actual net payments made by the LLB Group for domestic and foreign corporate profit taxes amounted to CHF 26.5 million for the 2022 financial year (previous year: CHF 11.9 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

2022

2021

+ / – %

Operating profit before tax

174'961

163'412

7.1

Assumed average income tax rate of 14.2 per cent (previous year: 13.4 %)

– 24'760

– 21'921

12.9

 

 

 

 

Increase / (Decrease) resulting from

 

 

 

Use of losses carried forward

822

0

 

Tax savings / (charges) from previous years

104

– 3'616

 

Non-tax deductible (expenses) / tax-exempt income 1

– 1'678

– 12

 

Total tax expenses

– 25'511

– 25'549

– 0.1

1 These were mainly attributable to losses with equities, which were not tax deductible.

The assumed average tax burden is based on the weighted average tax rates of the individual group companies.

The increase in average tax burden is attributable to the changed profit contributions of the Group companies. In particular, the increased relative profit contribution of LLB (Österreich) AG in 2022 led to a higher assumed average tax burden in comparison with the previous year.

As at 31 December 2022, there were losses carried forward amounting to CHF 38 million, which were not reported as deferred tax receivables (previous year: CHF 84 million). They expire within the next six years. In general, tax losses can be carried forward for seven years in Switzerland, and indefinitely in the Principality of Liechtenstein and in Austria.

10Earnings per share

 

2022

2021

+ / – %

Net profit attributable to the shareholders of LLB (in CHF thousands)

147'543

129'907

13.6

Weighted average shares outstanding

30'607'810

30'551'544

0.2

Basic earnings per share (in CHF)

4.82

4.25

13.4

 

 

 

 

Net profit for diluted earnings per share attributable to the shareholders of LLB (in CHF thousands)

147'543

129'907

13.6

Weighted average shares outstanding for diluted earnings per share

30'766'678

30'723'923

0.1

Diluted earnings per share (in CHF)

4.80

4.23

13.4

 

 

 

 

Dividend (in CHF)

2.50 1

2.30

 

1 Proposal of the Board of Directors to the General Meeting of Shareholders on 5 May 2023

The weighted average number of shares outstanding for the calculation of the undiluted and diluted result differs in that the share entitlements are included in the calculation of the diluted earnings. There are no other factors that would lead to a dilution of earnings.