Notes to the consolidated income statement
Information unaudited Information ungeprüft Notes to the consolidated income statement
1Net interest income
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Interest income from financial instruments measured at amortised cost |
|
|
|
|
Due from banks |
136'936 |
14'794 |
825.6 |
|
Loans |
275'959 |
162'406 |
69.9 |
|
Debt instruments |
14'652 |
977 |
|
|
Loan commissions with the character of interest |
3'085 |
2'913 |
5.9 |
|
Received negative interest |
2'528 |
22'654 |
– 88.8 |
|
Total interest income from financial instruments measured at amortised cost |
433'160 |
203'745 |
112.6 |
|
|
|
|
|
|
Interest income from financial instruments, recognised at fair value through other comprehensive income |
|
|
|
|
Debt instruments |
19'178 |
18'679 |
2.7 |
|
Total interest income from financial instruments, recognised at fair value through other comprehensive income |
19'178 |
18'679 |
2.7 |
|
|
|
|
|
|
Interest income from financial instruments at fair value through profit and loss |
|
|
|
|
Debt instruments |
452 |
1'083 |
– 58.3 |
|
Interest rate derivatives |
5'594 |
18'264 |
– 69.4 |
|
Total interest income from financial instruments at fair value through profit and loss |
6'045 |
19'347 |
– 68.8 |
|
|
|
|
|
|
Total interest income |
458'383 |
241'771 |
89.6 |
|
|
|
|
|
|
Interest expenses from financial instruments measured at amortised cost |
|
|
|
|
Due to banks |
– 26'300 |
– 7'362 |
257.3 |
|
Due to customers |
– 251'166 |
– 37'837 |
563.8 |
|
Paid negative interest |
– 2'126 |
– 13'729 |
– 84.5 |
|
Lease liabilities |
– 284 |
– 240 |
18.5 |
|
Debt issued |
– 11'295 |
– 5'187 |
117.8 |
|
Total interest expenses from financial instruments measured at amortised cost |
– 291'170 |
– 64'354 |
352.4 |
|
|
|
|
|
|
Interest expenses from financial instruments measured at fair value |
|
|
|
|
Interest rate derivatives |
– 2'821 |
– 25'170 |
– 88.8 |
|
Total interest expenses from financial instruments measured at fair value |
– 2'821 |
– 25'170 |
– 88.8 |
|
|
|
|
|
|
Total interest expenses |
– 293'991 |
– 89'524 |
228.4 |
|
|
|
|
|
|
Total net interest income |
164'393 |
152'247 |
8.0 |
2Net fee and commission income
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Brokerage fees |
38'218 |
44'524 |
– 14.2 |
|
Custody fees |
46'203 |
52'327 |
– 11.7 |
|
Advisory and management fees |
62'551 |
55'290 |
13.1 |
|
Investment fund fees |
152'065 |
157'251 |
– 3.3 |
|
Credit-related fees and commissions |
758 |
736 |
2.9 |
|
Commission income from other services |
27'448 |
33'761 |
– 18.7 |
|
Total fee and commission income |
327'242 |
343'889 |
– 4.8 |
|
|
|
|
|
|
Brokerage fees paid |
– 9'380 |
– 10'298 |
– 8.9 |
|
Other fee and commission expenses |
– 117'817 |
– 122'644 |
– 3.9 |
|
Total fee and commission expenses |
– 127'197 |
– 132'942 |
– 4.3 |
|
|
|
|
|
|
Total net fee and commission income |
200'045 |
210'947 |
– 5.2 |
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 |
2023 |
2022 1 |
+ / – % |
|
Total all-in fees |
41'499 |
31'974 |
29.8 |
|
of which brokerage |
16'343 |
15'466 |
5.7 |
|
of which securities administration |
5'874 |
3'934 |
49.3 |
|
of which asset management |
19'282 |
12'574 |
53.4 |
1 The all-in fee was adjusted for the 2022 business year. The total does not change. The adjustment does not change the amount in the line item "Advisory and management fees" nor does it directly affect the income statement.
3Net trading income
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Foreign exchange trading |
171'658 |
129'319 |
32.7 |
|
Foreign note trading |
– 1'018 |
– 350 |
191.2 |
|
Precious metals trading |
2'031 |
2'211 |
– 8.2 |
|
Interest rate instruments 1 |
500 |
4'969 |
– 89.9 |
|
Total net trading income |
173'171 |
136'149 |
27.2 |
1 The LLB Group employs interest rate swaps to hedge interest rate risks. The interest rate swaps reported here do not fulfil the approval criteria for booking as hedging transactions in accordance with IAS 39 (see also note 14).
4Net income from financial investments
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Financial investments at fair value through profit and loss |
|
|
|
|
Dividend income |
589 |
566 |
4.1 |
|
Price gains 1 |
884 |
– 6'965 |
|
|
Total net income from financial investments at fair value through profit and loss |
1'472 |
– 6'399 |
|
|
|
|
|
|
|
Financial investments, recognised at fair value through other comprehensive income |
|
|
|
|
Dividend income |
5'947 |
5'693 |
4.5 |
|
of which from financial investments held on the balance sheet date |
5'787 |
5'514 |
5.0 |
|
of which from financial investments sold during the reporting period 2 |
160 |
179 |
– 11.0 |
|
Realised gain |
– 157 |
– 227 |
– 31.0 |
|
Total net income from financial investments, recognised at fair value through other comprehensive income |
5'790 |
5'466 |
5.9 |
|
|
|
|
|
|
Total net income from financial investments at fair value |
7'262 |
– 933 |
|
1 The realised price gains for 2023 amounted to minus CHF thousands 2'305 (2022: minus CHF thousands 1'347).
2 Further details are provided in note 15.
5Other income
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Net income from properties 1 |
– 1'104 |
2'014 |
|
|
Income from various services |
– 768 |
– 554 |
38.7 |
|
Share of income from associated companies and joint venture |
0 |
3 |
– 93.3 |
|
Additional other income 2 |
– 1'032 |
6'036 |
|
|
Total other income |
– 2'904 |
7'499 |
|
1 In the 2023 business year, net income from properties consisted of rental income and market-related revaluation adjustments of property (2022: rental income and profit from the sale of properties).
2 Contains the sale of a value-adjusted claim amounting to CHF 5.6 million in 2022
6Personnel expenses
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Salaries 1 |
– 170'546 |
– 156'237 |
9.2 |
|
Pension and other post-employment benefit plans 2 |
– 13'362 |
– 16'935 |
– 21.1 |
|
Other social contributions |
– 19'042 |
– 17'259 |
10.3 |
|
Training costs |
– 1'955 |
– 1'772 |
10.3 |
|
Other personnel expenses |
– 4'559 |
– 3'945 |
15.5 |
|
Total personnel expenses |
– 209'463 |
– 196'148 |
6.8 |
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:
|
|
2023 |
2022 |
|
Employees |
|
|
|
Number of employees (full-time equivalents) |
1'175 |
1'080 |
|
Full-time employees |
963 |
918 |
|
of which apprentices |
23 |
26 |
|
of which young talents 1 |
13 |
14 |
|
Part-time employees |
388 |
353 |
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 |
2023 |
2022 |
+ / – % |
|
Occupancy |
– 6'246 |
– 6'265 |
– 0.3 |
|
Expenses for IT, machinery and other equipment |
– 35'011 |
– 30'436 |
15.0 |
|
Information and communication expenses |
– 19'379 |
– 20'955 |
– 7.5 |
|
Marketing and public relations |
– 14'610 |
– 11'334 |
28.9 |
|
Consulting and audit fees |
– 10'594 |
– 9'488 |
11.7 |
|
Provisions for legal and litigation risks 1 |
18 |
– 4'503 |
|
|
Litigation, legal and representation costs |
– 1'325 |
– 2'376 |
– 44.3 |
|
Contributions to Deposit Protection Fund |
– 3'096 |
– 3'231 |
– 4.2 |
|
Other general and administrative expenses |
– 9'695 |
– 7'430 |
30.5 |
|
Total general and administrative expenses |
– 99'936 |
– 96'017 |
4.1 |
1 See note 25 for details
8Depreciation
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Property |
– 4'537 |
– 4'485 |
1.2 |
|
Right of use assets |
– 7'530 |
– 5'236 |
43.8 |
|
Other equipment |
– 10'142 |
– 9'032 |
12.3 |
|
Intangible assets |
– 16'797 |
– 17'313 |
– 3.0 |
|
Total depreciation |
– 39'006 |
– 36'066 |
8.2 |
9Tax expenses
|
in CHF thousands |
2023 |
2022 |
+ / – % |
|
Current taxes |
– 24'258 |
– 31'504 |
– 23.0 |
|
Deferred taxes 1 |
– 4'372 |
5'993 |
|
|
Total tax expenses |
– 28'630 |
– 25'511 |
12.2 |
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 11.0 million for the 2023 financial year (previous year: CHF 26.5 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 |
2023 |
2022 |
+ / – % |
|
Operating profit before tax |
193'363 |
174'961 |
10.5 |
|
Assumed average income tax rate of 13.7 per cent (previous year: 14.2 %) |
– 26'501 |
– 24'760 |
7.0 |
|
|
|
|
|
|
Increase / (Decrease) resulting from |
|
|
|
|
Use of losses carried forward |
0 |
822 |
– 100.0 |
|
Tax savings / (charges) from previous years |
– 260 |
104 |
|
|
Non-tax deductible (expenses) / tax-exempt income |
– 1'869 |
– 1'678 |
11.4 |
|
Total tax expenses |
– 28'630 |
– 25'511 |
12.2 |
The assumed average tax burden is based on the weighted average tax rates of the individual Group companies. The decrease in the average tax burden is mainly due to the reduction in the assumed tax rate of LLB (Österreich) AG.
As at 31 December 2023, there were losses carried forward amounting to CHF 32 million, which were not reported as deferred tax receivables (previous year: CHF 38 million). They expire within the next five 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
|
|
2023 |
2022 |
+ / – % |
|
Net profit attributable to the shareholders of LLB (in CHF thousands) |
164'570 |
147'543 |
11.5 |
|
Weighted average shares outstanding |
30'638'158 |
30'607'810 |
0.1 |
|
Basic earnings per share (in CHF) |
5.37 |
4.82 |
11.4 |
|
|
|
|
|
|
Net profit for diluted earnings per share attributable to the shareholders of LLB (in CHF thousands) |
164'570 |
147'543 |
11.5 |
|
Weighted average shares outstanding for diluted earnings per share |
30'798'660 |
30'766'678 |
0.1 |
|
Diluted earnings per share (in CHF) |
5.34 |
4.80 |
11.4 |
|
|
|
|
|
|
Dividend (in CHF) |
2.70 1 |
2.50 |
|
1 Proposal of the Board of Directors to the General Meeting of Shareholders on 19 April 2024
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.