Information unaudited Information ungeprüftLLB continues to grow

Dear shareholders

“Increasing uncertainty” are probably the words one would use, if one had to describe 2024 in two words. Geo-political conflicts and an economic slowdown aggravate this uncertainty. Nevertheless, we in the LLB Group have demonstrated stability and success in a challenging environment.

Successful growth and increased Group net profit

In 2024 again, we maintained our dynamic growth momentum. We generated net new money amounting to CHF 2.8 billion (+3.2 %) as well as lending business growth of CHF 1.1 billion (7.4 %). Both market divisions and all three booking centres contributed to this pleasing growth in net new money. Thanks to the growth in loans to clients and the net new money inflows, the business volume expanded to CHF 113.5 billion as at 31 December 2024 – a new record level. The financial markets supported our robust growth. Client assets under management rose substantially to CHF 97.0 billion and loans to clients reached CHF 16.5 billion, both representing new record levels.

At CHF 167.2 million (2023: CHF 164.7 million), Group net profit exceeded the previous yearʼs result by 1.5 per cent, the best result for fifteen years. Operating income rose by 4.4 per cent to CHF 565.8 million (2023: CHF 541.8 million), reflecting the strength of our business model. Fee and commission income posted a particularly pleasing development. Thanks to higher volumes of client assets as well as performance fees, net fee and commission income was CHF 14.0 million up on the previous year (2023: CHF 200.0 million).The writing back of specific value adjustments also contributed to the positive development. The effects of the turnaround in interest rates ran in opposite directions with interest income and income from trading business. In total, these effects resulted in a decrease of CHF 4 million. At CHF 369.5 million (2023: CHF 348.4 million), as expected, operating expenses were 6.1 per cent higher, mainly as a result of higher personnel costs. In the LLB Group, in line with strategy, we created around seventy jobs last year, particularly in client advisory services and in the digital transformation functions. In spite of the growth achieved, general and administrative expenses fell to CHF 98.4 million, 1.5 per cent lower than in the previous year (2023: CHF 99.9 million). The Cost Income Ratio rose to 66.4 per cent (2023: 64.3 %). With a Tier 1 ratio of 18.8 per cent and an Aa2 rating from Moodyʼs, we continue to stand for the highest level of security and stability.

Growth in Austria, Germany and Switzerland

One of the core elements of our strategy is growth. In 2024, we took several important steps towards attaining our ambitious goals. At the beginning of the year we established three business locations in Germany, namely at Munich, Frankfurt and Düsseldorf. These business locations have developed very positively and our team is growing accordingly. Furthermore, we are expanding in Switzerland at Zurich and St. Gallen in order to better care for our clients in eastern Switzerland and the Zurich region. In Austria too, we are growing successfully. With the takeover of ZKB Österreich we have strengthened our position as the leading wealth management bank in Austria while also underscoring the strategic importance of this market. Thanks to the takeover, we can expand our business presence in Austriaʼs key wealth management centres in Vienna and Salzburg.

Digitalisation

For us, digitalisation is more than just a catchword. We are constantly working to make our processes more efficient and further digitalise our client contacts. We are the first bank in Liechtenstein to offer our clients a digital possibility of onboarding themselves to the bank. In the year under report, we introduced a powerful, new customer relationship management system which simplifies internal collaboration at the bank while making it more client focused at the same time. Moreover, we have added further functions and useful innovations to our digital “wiLLBe” asset management and mobile banking apps.

Sustainability

In relation to sustainability – another core element of our strategy – we set ourselves the goal of achieving complete climate neutrality by 2040. An important step in this direction is our new mobility concept that encourages our employees to utilise public transport facilities. We have introduced a new renovation calculator that offers building owners information about renovation requirements, costs and subsidy possibilities. We have also revised and improved the conditions of our green mortgage package. And finally, our dedicated sustainability team is working intensively on a new sustainability report to be implemented soon.

Successful half-time assessment

We can record a positive assessment at the half-way stage of our strategy period. The implementation of ACT-26 is proceeding as planned and we are on course to achieving our strategic goals. In 2024, in terms of the core element “Efficiency”, we are slightly above our self-defined target of a maximum Cost Income Ratio of 65 per cent.

Outstanding investment competence

The numerous awards we received in 2024 again confirmed the first class quality of our investment competence. At the prestigious Lipper Fund Awards we again received multiple accolades. The Fuchsbriefe report commended our competence in wealth management with the rating “very good”. At the Citywire Awards Germany, we were selected for the “Best Private Banking” award and we received the rating “Outstanding Wealth Management” from Focus Money and n-tv television.

Dividend

As shareholders, for many years you have benefitted from our long-term, attractive dividend policy. And that is to continue. Accordingly, the Board of Directors proposes to the General Meeting of Shareholders in April 2025 that the dividend be increased from CHF 2.70 to CHF 2.80. Based on the closing price of the LLB share on 31 December 2024, this corresponds to a dividend yield of 4.0 per cent.

Outlook

Our success in recent years shows that our forward-looking ACT-26 strategy works. As the LLB Group, we stand for the highest level of stability and security, enjoy the complete trust of our clients and are well positioned for the future. The “increasing global insecurity” seems certain to persist. On account of the changed market environment, we expect to attain a lower Group business result in 2025 than in the previous year. This is largely attributable to the sharply falling interest rates, especially in Swiss francs, and the one-time integration costs caused by the takeover of ZKB Österreich. In the first half of the current strategy period, our focus lay principally on the core element “Growth”. In the second half we shall concentrate on “Efficiency”.

A note of thanks

We are delighted to continue the successful 160-year story of our company. We would like to thank you our esteemed shareholders, as well as our clients, for your trust and loyalty. Our special thanks also go to our employees for their tireless commitment, which made our gratifying 2024 business result possible.

Yours sincerely

Gabriel Brenna

Group CEO

Georg Wohlwend

Chairman of the Board of Directors