Information unaudited Information ungeprüftNotes to the consolidated balance sheet
11Cash and balances with central banks
31.12.2024 | 31.12.2023 | +/- % | |
Cash | 60’398 | 69’556 | – 13.2 |
Demand deposits with central banks | 5’875’687 | 6’320’315 | – 7.0 |
Total cash and balances with central banks | 5’936’085 | 6’389’870 | – 7.1 |
12Due from banks
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
On demand 1 | 577’627 | 317’014 | 82.2 |
At maturity or callable | 600’094 | 0 | |
Total due from banks | 1’177’721 | 317’014 | 271.5 |
1Of which receivables from precious metals measured at fair value through profit and loss amounting to CHF 99.9 million (previous year: CHF 66.6 million)
13Loans
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Mortgage loans | 14’809’375 | 13’805’657 | 7.3 |
Public institutions | 106’574 | 115’201 | – 7.5 |
Fixed advances and loans | 1’183’433 | 1’024’609 | 15.5 |
Other loans and advances | 450’534 | 414’401 | 8.7 |
Expected credit losses | – 61’031 | – 73’112 | – 16.5 |
Total loans | 16’488’886 | 15’286’758 | 7.9 |
Further information, especially regarding the expected credit loss, is provided in risk management chapter 3 Credit risk.
14Derivative financial instruments
Interest rate swaps are concluded to hedge against interest rate fluctuation risks. In addition, derivative financial instruments are employed primarily within the scope of client business. In this case, both standardised and OTC derivatives are traded. International banks having a high creditworthiness serve as counterparties. LLB does not assume a market-maker role on the interbank market. The tables in this note contain information about the nominal value (contract volume), about the replacement values and about the hedge accounting positions.
Total | ||||||
in CHF thousands | Positive replacement values | Negative replacement values | Total contract volume | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Derivative financial instruments in the trading portfolio | ||||||
Interest rate contracts | ||||||
Interest rate swaps | 0 | 460 | 2 | 1’088 | 9’412 | 135’000 |
Foreign exchange contracts | ||||||
Forward contracts | 90’680 | 26’317 | 25’344 | 50’847 | 3’145’771 | 3’006’154 |
Combined interest rate / currency swaps | 307’911 | 192’447 | 309’391 | 270’382 | 19’661’136 | 17’498’885 |
Options (OTC) | 491 | 1’052 | 491 | 1’059 | 41’266 | 96’811 |
Precious metals contracts | ||||||
Options (OTC) | 2’042 | 269 | 2’041 | 269 | 35’006 | 12’180 |
Equity / index contracts | ||||||
Options (OTC) | 0 | 28 | 0 | 28 | 0 | 42’577 |
Total derivative financial instruments in the trading portfolio | 401’126 | 220’574 | 337’269 | 323’674 | 22’892’591 | 20’791’607 |
Derivative financial instruments for hedging purposes | ||||||
Interest rate contracts | ||||||
Interest rate swaps (fair value hedge) | 65’511 | 65’800 | 9’107 | 13’491 | 2’036’472 | 1’637’260 |
Total derivative financial instruments for hedging purposes | 65’511 | 65’800 | 9’107 | 13’491 | 2’036’472 | 1’637’260 |
Total derivative financial instruments | 466’637 | 286’374 | 346’376 | 337’165 | 24’929’063 | 22’428’867 |
Within the scope of fair value hedge accounting, the LLB Group employs interest rate swaps for interest rate risks on fixed-rate instruments. Ineffectiveness in highly effective hedge accounting positions occurs as a result of small mismatches in the risk profile, for example, differing payment dates or divergences in the term of the instruments amounting to a few days. Furthermore, different sensitivities in the underlying transactions and hedging instruments play a role, for example, major changes in the value of the front leg of the swap, for which there is no corresponding sensitivity in the underlying transaction. There are basic risks, which could have an influence on the effectiveness, such as different benchmark curves for the underlying and hedging transactions. In general, the LLB Group uses identical benchmark curves, however special situations such as the IBOR changeover could mean that a different approach is taken. Since the LLB Group utilises a macro hedge accounting concept, mortgage loans, medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banksʼ Central Bond Institutions represent the whole population of possible hedge accounting transactions. The population corresponds to the carrying amounts of the balance sheet items of the hedged items. Of these, only a portion is designated in the hedge accounting relationship. The designation between underlying transaction and hedging instrument is carried out with the aid of an optimisation algorithm, which determines the interest risk profile of the sub-portfolios in order to attain an optimal hedge allocation.
Carrying amount of hedging instrument | |||||
in CHF thousands | Nominal value of hedging instrument | Assets | Liabilities | Balance sheet position of hedging instrument | Fair value change to measurement of ineffective hedge |
31.12.2023 | |||||
Fair value hedge | |||||
Interest rate swaps | 1’217’260 | 65’800 | Derivative financial instruments | – 34’266 | |
Interest rate swaps | 420’000 | – 13’491 | Derivative financial instruments | 8’882 | |
Carrying amount of hedging instrument | |||||
in CHF thousands | Nominal value of hedging instrument | Assets | Liabilities | Balance sheet position of hedging instrument | Fair value change to measurement of ineffective hedge |
31.12.2024 | |||||
Fair value hedge | |||||
Interest rate swaps | 1’366’472 | 65’511 | Derivative financial instruments | 1’012 | |
Interest rate swaps | 670’000 | – 9’107 | Derivative financial instruments | 3’983 | |
Carrying amount of underlying transaction | Cumulative total from fair value adjustments of the underlying transaction | Balance sheet position of underlying transaction | Fair value change to measurement of ineffective hedge | |||
in CHF thousands | Assets | Liabilities | Assets | Liabilities | ||
31.12.2023 | ||||||
Fair value hedge | ||||||
Mortgage loans | 13’805’657 | – 37’507 | Loans | 38’998 | ||
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’030’887 | – 4’187 | Debt issued | – 10’283 | ||
Carrying amount of underlying transaction | Cumulative total from fair value adjustments of the underlying transaction | Balance sheet position of underlying transaction | Fair value change to measurement of ineffective hedge | |||
in CHF thousands | Assets | Liabilities | Assets | Liabilities | ||
31.12.2024 | ||||||
Fair value hedge | ||||||
Mortgage loans | 14’809’375 | – 6’560 | Loans | 30’947 | ||
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’310’300 | – 38’135 | Debt issued | – 33’947 | ||
in CHF thousands | Ineffectiveness recognised in the income statement | Income statement position |
31.12.2023 | ||
Fair value hedge | ||
Interest rate risk | 3’331 | Interest income |
31.12.2024 | ||
Fair value hedge | ||
Interest rate risk | 1’996 | Interest income |
15Financial investments
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Financial investments measured at amortised cost | |||
Debt instruments | |||
listed | 1’324’216 | 813’599 | 62.8 |
unlisted | 0 | 20’507 | – 100.0 |
Total debt instruments | 1’324’216 | 834’106 | 58.8 |
Total financial investments measured at amortised cost | 1’324’216 | 834’106 | 58.8 |
Financial investments measured at fair value through profit and loss | |||
Debt instruments | |||
listed | 2’744 | 24’109 | – 88.6 |
unlisted | 26’892 | 32’326 | – 16.8 |
Total debt instruments | 29’636 | 56’435 | – 47.5 |
Equity instruments | |||
listed | 9 | 10 | – 8.6 |
unlisted | 127 | 263 | – 51.7 |
Total equity instruments | 137 | 274 | – 50.1 |
Total financial investments measured at fair value through profit and loss | 29’772 | 56’709 | – 47.5 |
Financial investments, measured at fair value through other comprehensive income | |||
Debt instruments | |||
listed | 1’404’023 | 1’663’993 | – 15.6 |
Total debt instruments | 1’404’023 | 1’663’993 | – 15.6 |
Equity instruments | |||
listed | 208’095 | 199’062 | 4.5 |
unlisted | 36’420 | 33’116 | 10.0 |
Total equity instruments | 244’515 | 232’179 | 5.3 |
Total financial investments, measured at fair value through other comprehensive income | 1’648’539 | 1’896’172 | – 13.1 |
Total financial investments | 3’002’527 | 2’786’987 | 7.7 |
The equity instruments recognised at fair value through other comprehensive income consist of strategic investments of an infrastructure nature, which are not exchange-listed (see note 33), as well as various equities of the Swiss Market Index (SMI). Short-term profit-taking is not the focus with equity instruments recognised at fair value through other comprehensive income, rather they represent a long-term position which pursues the collection of dividends and a long-term appreciation in value.
Within the scope of the reweighting of the SMI, LLB adjusted its portfolio of equities recognised in other comprehensive income. The disposals resulted in a profit of CHF 1.3 million (previous year: loss of CHF 4.2 million). The fair value of the transactions amounted to CHF 7.1 million (previous year: CHF 9.6 million). The profit was recognised directly in retained earnings.
16Property and other equipment
in CHF thousands | Property | Right of use assets 1 | Other equipment | Total |
Year ended December 2023 | ||||
Cost as at 1 January | 202’876 | 48’428 | 100’591 | 351’896 |
Additions | 10’656 | 8’824 | 8’173 | 27’653 |
Disposals | – 10’306 | – 9’094 | – 11’770 | – 31’170 |
Currency effects | 0 | – 1’132 | – 301 | – 1’433 |
Cost as at 31 December | 203’226 | 47’027 | 96’693 | 346’947 |
Accumulated depreciation / impairments as at 1 January | – 124’096 | – 19’689 | – 74’443 | – 218’229 |
Depreciation | – 4’537 | – 5’390 | – 10’142 | – 20’069 |
Impairments | 0 | – 2’140 | 0 | – 2’140 |
Disposals / (Additions) from accumulated depreciation | 10’306 | 4’784 | 11’770 | 26’860 |
Currency effects | 0 | 403 | 244 | 648 |
Accumulated depreciation / impairments as at 31 December | – 118’327 | – 22’032 | – 72’571 | – 212’930 |
Carrying amount as at 31 December 2023 | 84’899 | 24’995 | 24’123 | 134’016 |
Year ended December 2024 | ||||
Cost as at 1 January | 203’226 | 47’027 | 96’693 | 346’947 |
Additions | 15’611 | 2’985 | 8’153 | 26’750 |
Disposals | – 210 | – 1’889 | – 5’726 | – 7’826 |
Currency effects | 0 | 289 | 84 | 373 |
Cost as at 31 December | 218’627 | 48’413 | 99’204 | 366’244 |
Accumulated depreciation / impairments as at 1 January | – 118’327 | – 22’032 | – 72’571 | – 212’930 |
Depreciation | – 4’560 | – 5’785 | – 8’636 | – 18’982 |
(Impairments) / Reversal of impairments | 0 | 158 | 0 | 158 |
Disposals / (Additions) from accumulated depreciation | 114 | 1’164 | 5’664 | 6’943 |
Currency effects | 0 | – 89 | – 59 | – 148 |
Accumulated depreciation / impairments as at 31 December | – 122’773 | – 26’585 | – 75’602 | – 224’959 |
Carrying amount as at 31 December 2024 | 95’854 | 21’828 | 23’602 | 141’284 |
1The rights of use relate mainly to real estate. An immaterial proportion relates to the use of vehicles.
The LLB Group as lessee
Further details regarding leases, besides this note, are provided for the repayment of leasing liabilities (see Statement of cash flows and note 23) as well as their amounts (note 26), maturities (see Risk management, chapter 2) and interest expenses (see note 1).
The LLB Group as lessor
Future claims from operating leases
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Due within one year | 1’253 | 1’255 | – 0.2 |
Residual period to maturity between 1 and 2 years | 1’114 | 1’112 | 0.3 |
Residual period to maturity between 2 and 3 years | 1’114 | 1’112 | 0.3 |
Residual period to maturity between 3 and 4 years | 1’082 | 1’112 | – 2.7 |
Residual period to maturity between 4 and 5 years | 763 | 1’079 | – 29.3 |
Due in more than five years | 2’278 | 3’028 | – 24.8 |
Total future net receivables from operating leases | 7’604 | 8’697 | – 12.6 |
Income from operating leases is a part of other income and amounted to CHF thousands 1ʼ614 (2023: CHF thousands 2ʼ073). Properties are only leased.
17Goodwill and other intangible assets
in CHF thousands | Goodwill | Client rela- tionships | Software | Other intangible assets | Total |
Year ended December 2023 | |||||
Cost as at 1 January | 154’828 | 145’345 | 150’318 | 1’140 | 451’630 |
Additions | 0 | 0 | 15’193 | 0 | 15’193 |
Disposals | 0 | 0 | – 2’506 | 0 | – 2’506 |
Currency effects | – 5’211 | – 4’419 | – 335 | – 2 | – 9’968 |
Cost as at 31 December | 149’617 | 140’926 | 162’669 | 1’138 | 454’349 |
Accumulated depreciation / impairments as at 1 January | 0 | – 80’983 | – 99’900 | – 985 | – 181’868 |
Depreciation | 0 | – 5’803 | – 10’848 | – 130 | – 16’782 |
Impairments | 0 | 0 | – 15 | 0 | – 15 |
Disposals / (Additions) from accumulated amortisation | 0 | 0 | 2’506 | 0 | 2’506 |
Currency effects | 0 | 1’369 | 124 | 0 | 1’494 |
Accumulated depreciation / impairments as at 31 December | 0 | – 85’416 | – 108’133 | – 1’116 | – 194’665 |
Carrying amount as at 31 December 2023 | 149’617 | 55’509 | 54’535 | 22 | 259’684 |
Year ended December 2024 | |||||
Cost as at 1 January | 149’617 | 140’926 | 162’669 | 1’138 | 454’349 |
Additions | 0 | 0 | 20’516 | 0 | 20’516 |
Disposals | 0 | 0 | – 1’820 | 0 | – 1’820 |
Currency effects | 1’349 | 1’144 | 100 | 0 | 2’593 |
Cost as at 31 December | 150’966 | 142’070 | 181’464 | 1’138 | 475’638 |
Accumulated depreciation / impairments as at 1 January | 0 | – 85’416 | – 108’133 | – 1’116 | – 194’665 |
Reclassifications | 0 | 0 | 22 | – 22 | 0 |
Depreciation | 0 | – 5’705 | – 11’823 | 0 | – 17’529 |
Disposals / (Additions) from accumulated amortisation | 0 | 0 | 1’820 | 0 | 1’820 |
Currency effects | 0 | – 313 | – 29 | 0 | – 343 |
Accumulated depreciation / impairments as at 31 December | 0 | – 91’435 | – 118’143 | – 1’138 | – 210’716 |
Carrying amount as at 31 December 2024 | 150’966 | 50’635 | 63’321 | 0 | 264’922 |
Goodwill
The LLB Group reported goodwill for the following cash generating units:
in CHF thousands | 31.12.2024 | 31.12.2023 |
Segment Retail & Corporate Banking | 55’620 | 55’620 |
Segment International Wealth Management 1 | 95’346 | 93’997 |
Total | 150’966 | 149’617 |
1Fluctuations in goodwill are attributable to conversion of the functional currency into the reporting currency.
Goodwill impairment testing
Goodwill is tested for impairment annually in the third quarter as a basis for the annual financial reporting, and also as required. The test to determine a possible impairment compares the recoverable amount of each cash generating unit, which carries goodwill, with its balance sheet value.
On the basis of the impairment testing carried out, management reached the conclusion that for the year ended 31 December 2024, the total goodwill of CHF 151.0 million assigned to the cash generating units remains recoverable.
Recoverable amount
For determining the value in use, which corresponds to the recoverable amount of the respective cash generating units, the LLB Group employs a discounted cash flow (DCF) valuation model. It takes into consideration the special characteristics of the banking business and the financial services sector, as well as the regulatory environment. With the aid of the model, and on the basis of the financial planning approved by management, the cash value of estimated free cash flow is calculated. If regulatory capital requirements exist for the cash generating unit, these capital requirements are deducted from the estimated free cash flows for the respective period. This amount, adjusted for regulatory capital requirements, then corresponds to the theoretical sum that could be paid out to the shareholders. For the assessment of the forecasted earnings, management employs approved financial plans covering a period of five years. The results for all periods after the fifth year are extrapolated from the forecasted result and the free cash flows of the fifth year with a long-term growth rate, which corresponds to the long-term inflation rate. These are the inflation rates of Switzerland and Liechtenstein. Under certain circumstances, the growth rates may vary for the individual cash generating units because the probable developments and conditions in the respective markets are taken into account.
Assumptions
As far as possible, and when available, the parameters on which the valuation model is based are coordinated with external market information. In this context, the value in use of a cash generating unit reacts in the most sensitive manner to changes in the forecasted earnings, changes to the discount rate and changes in the long-term growth rate. The forecasted earnings are based on an economic scenario, whose input factors are the projected interest rate, currency and stock market developments, as well as the sales planning of the individual market divisions. The discount rate is determined on the basis of the capital asset pricing model (CAPM), which contains a risk-free interest rate, a market risk premium, a small cap premium, as well as factor for the systematic market risk, i.e. the beta factor.
The long-term growth rate outside the five-year planning period (terminal value), on which the impairment tests for the annual report as at 31 December 2024 were based and which were used for extrapolation purposes, as well as the discount rate for the cash generating units are shown in the table below.
Growth rate | Discount rate | |||
in per cent | 2024 | 2023 | 2024 | 2023 |
Segment Retail & Corporate Banking | 1.5 | 1.5 | 5.5 | 5.5 |
Segment International Wealth Management | 1.5 | 1.5 | 7.5 | 8.0 |
Sensitivities
All the parameters and assumptions, on which the testing of the individual cash generating units are based, are reviewed and, if necessary, adjusted during the periodic preparation and conducting of impairment tests. In order to check the effects of parameter adjustments on the value in use of the individual cash generating units, the parameters and assumptions used with the valuation model are subjected to an individual sensitivity analysis. For this purpose, the forecasted free cash flow is changed by 10 per cent, the discount rate by 10 per cent and the long-term growth rates also by 10 per cent. According to the results of the impairment tests performed, and based on the assumptions described, an amount of between CHF 106 million and CHF 590 million in excess of the balance sheet value is obtained for all cash generating units. A reduction of the free cash flow by 10 per cent, or an increase in the discount rate of 10 per cent, or a reduction in the long-term growth rate of 10 per cent would not result in any impairment of the goodwill.
Over the last five years, the parameters have remained very constant. Since a constant development of the parameters is also expected in the future, the sensitivities of 10 per cent for each of the three parameters are regarded as reasonable.
Client relationships
Client relationships are assets, which are acquired and capitalised within the scope of an acquisition. These are amortised over a period of 15 years on a straight-line basis. Estimated aggregated amortisation amounts to:
in CHF thousands | |
2025 | 5’705 |
2026 | 5’705 |
2027 | 5’705 |
2028 | 5’705 |
2029 | 5’705 |
2030 and thereafter | 22’109 |
Total | 50’635 |
18Other assets
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Precious metals holdings | 73’759 | 68’335 | 7.9 |
Settlement accounts | 17’264 | 16’065 | 7.5 |
Investment property 1 | 19’311 | 19’241 | 0.4 |
Non-current assets held for sale 2 | 13’081 | 8’808 | 48.5 |
VAT and other tax receivables | 5’637 | 4’932 | 14.3 |
Current tax assets | 0 | 7 | – 100.0 |
Investment in associates and joint venture | 36 | 35 | 3.2 |
Total other assets | 129’088 | 117’424 | 9.9 |
1Facilitate value appreciation and include properties and buildings. They are valued according to the fair value model on every balance sheet reporting date. Changes to the fair value, based on expert analyses carried out, are recognised in net income from property (see note 5).
2Several apartments were aqcuired within the scope of a residential construction project. In some cases, value adjustements were made for the apartments. Expenses incurred with this are part of net income from properties in other income (see note 5).
19Assets pledged
31.12.2024 | 31.12.2023 | |||
in CHF thousands | Carrying amount | Actual liability | Carrying amount | Actual liability |
Cash and balances with central banks | 13’325 | 26’650 | 13’599 | 27’198 |
Due from banks | 206’915 | 296’020 | 22’389 | 24’437 |
Mortgage loans | 2’912’450 | 2’143’600 | 2’452’711 | 1’809’600 |
Financial investments | 124’311 | 7’633 | 270’893 | 160’000 |
Receivables from customers | 9’085 | 17’793 | 34’171 | 38’802 |
Total pledged / assigned assets | 3’266’086 | 2’491’697 | 2’793’763 | 2’060’037 |
The mortgage loans are pledged as collateral for shares in bond issues of the Swiss Regional or Cantonal Banksʼ Central Bond Institutions.
The financial assets are pledged for repurchase agreements, stock exchange deposits, lombard limits at national and central banks and to secure other business activities.
20Due to banks
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
On demand | 707’360 | 552’284 | 28.1 |
At maturity or callable | 396’317 | 398’258 | – 0.5 |
Total due to banks | 1’103’678 | 950’541 | 16.1 |
21Due to customers
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
On demand 1 | 13’689’875 | 11’844’235 | 15.6 |
At maturity or callable | 4’045’893 | 4’756’722 | – 14.9 |
Savings accounts | 2’908’739 | 2’767’376 | 5.1 |
Total due to customers | 20’644’507 | 19’368’333 | 6.6 |
1Of which liabilities from precious metals measured at fair value through profit and loss amounting to CHF 172.9 million (previous year: CHF 134.6 million)
22Debt issued
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Medium-term notes 1 | 171’009 | 217’704 | – 21.4 |
Shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions 2 | 2’139’291 | 1’813’184 | 18.0 |
Bonds | 751’855 | 551’090 | 36.4 |
Total debt issued | 3’062’154 | 2’581’977 | 18.6 |
1The average interest rate was 1.0 per cent as at 31 December 2024 (31.12.2023: 0.8 %).
2The average interest rate was 0.9 per cent as at 31 December 2024 (31.12.2023: 0.8 %).
The following table contains further information on the bonds issued:
in CHF thousands | |||||||||
Year issued | Name | ISIN | Currency | Maturity | Effective annual interest rate in % | Nominal interest rate in % | Nominal value | 31.12.2024 | 31.12.2023 |
2019 | Liechtensteinische Landesbank AG 0.125% Senior Preferred Anleihe 2019 – 2026 | CH0419041204 | CHF | 28.05.2026 | 0.106 % | 0.125 % | 150’000 | 150’151 | 150’179 |
2019 | Liechtensteinische Landesbank AG 0.000% Senior Preferred Anleihe 2019 – 2029 | CH0419041527 | CHF | 27.09.2029 | – 0.133 % | 0.000 % | 100’000 | 100’635 | 100’769 |
2020 | Liechtensteinische Landesbank AG 0.300% Senior Preferred Anleihe 2020 – 2030 | CH0536893255 | CHF | 24.09.2030 | 0.315 % | 0.300 % | 150’000 | 149’992 | 149’968 |
2023 | Liechtensteinische Landesbank AG 2.5 % Senior Non-Preferred Anleihe 2023 – 2030 | CH1306117040 | CHF | 22.11.2030 | 2.522 % | 2.500 % | 150’000 | 150’211 | 150’174 |
2024 | Liechtensteinische Landesbank AG 1.6% Senior Preferred Anleihe 2024 – 2034 | CH1380910237 | CHF | 30.10.2034 | 1.581 % | 1.600 % | 200’000 | 200’866 | |
23Changes to liabilities from financing activities
Non-cash changes | |||||||
in CHF thousands | 01.01.2023 | Cash changes | Changes in scope of con- solidation | Changes in ex- change rates | Changes in fair value | Other | 31.12.2023 |
Medium-term notes 1 | 188’152 | 18’744 | 0 | 0 | 10’283 | 525 | 217’704 |
Shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions 1 | 1’598’323 | 213’100 | 0 | 0 | 0 | 1’761 | 1’813’184 |
Bonds 1 | 401’057 | 150’000 | 0 | 0 | 0 | 33 | 551’090 |
Lease liabilities | 29’843 | – 5’644 | 0 | 0 | 0 | 3’726 | 27’925 |
Total liabilities from financing activities | 2’217’374 | 376’200 | 0 | 0 | 10’283 | 6’045 | 2’609’902 |
Non-cash changes | |||||||
in CHF thousands | 01.01.2024 | Cash changes | Changes in scope of con- solidation | Changes in ex- change rates | Changes in fair value | Other | 31.12.2024 |
Medium-term notes 1 | 217’704 | – 80’522 | 0 | 0 | 33’947 | – 120 | 171’009 |
Shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions 1 | 1’813’184 | 325’000 | 0 | 0 | 0 | 1’107 | 2’139’291 |
Bonds 1 | 551’090 | 200’000 | 0 | 0 | 0 | 765 | 751’855 |
Lease liabilities | 27’925 | – 6’386 | 0 | 0 | 0 | 2’640 | 24’179 |
Total liabilities from financing activities | 2’609’902 | 438’092 | 0 | 0 | 33’947 | 4’392 | 3’086’333 |
1Part of the balance sheet position "Debt issued"
24Deferred taxes
in CHF thousands | As at 1 January | Amount recognised in the income statement | Amount recognised in other com- prehensive income | Currency effects | From other effects (reclassifications) | As at 31 December |
Deferred tax assets | ||||||
2023 | ||||||
Tax losses carried forward | 5’208 | – 5’208 | 0 | 0 | 0 | 0 |
Recognised rights of use from leases | 115 | – 42 | 0 | 0 | 0 | 73 |
Property and equipment | 3’252 | 73 | 0 | 0 | 0 | 3’325 |
Specific allowance | 0 | 0 | 0 | 0 | 0 | 0 |
Liability for pension plans | 3’635 | – 494 | 2’930 | – 1 | 0 | 6’070 |
Intangible assets | 22 | 2 | 0 | 0 | 0 | 25 |
Derivative financial instruments | – 470 | – 307 | 0 | 0 | 0 | – 777 |
Expected credit losses | 675 | 125 | 0 | 0 | 0 | 800 |
Total | 12’436 | – 5’849 | 2’930 | – 1 | 0 | 9’515 |
Offsetting | – 2’065 | |||||
Total after offsetting | 7’450 | |||||
2024 | ||||||
Tax losses carried forward | 0 | 0 | 0 | 0 | 0 | 0 |
Recognised rights of use from leases | 73 | 49 | 0 | 0 | 0 | 122 |
Property and equipment | 3’325 | 524 | 0 | 0 | 0 | 3’849 |
Specific allowance | 0 | 0 | 0 | 0 | 0 | 0 |
Liability for pension plans | 6’070 | – 907 | 3’670 | 0 | 0 | 8’833 |
Intangible assets | 25 | 4 | 0 | 0 | 0 | 29 |
Derivative financial instruments | – 777 | 0 | 0 | 0 | 777 | 0 |
Expected credit losses | 800 | 84 | 0 | 0 | 0 | 884 |
Financial investments | 0 | 24 | 0 | 0 | 0 | 24 |
Total | 9’515 | – 222 | 3’670 | 0 | 777 | 13’741 |
Offsetting | – 3’351 | |||||
Total after offsetting | 10’390 | |||||
Deferred tax liabilities | ||||||
2023 | ||||||
Intangible assets | 12’140 | – 1’946 | 0 | – 518 | 0 | 9’675 |
Financial investments | – 2’377 | 561 | 2’379 | 237 | 0 | 800 |
Property and equipment | 692 | – 55 | 0 | – 38 | 0 | 599 |
Provisions | 11’976 | – 36 | 0 | 0 | 0 | 11’939 |
Total | 22’431 | – 1’477 | 2’379 | – 319 | 0 | 23’013 |
Offsetting | – 2’065 | |||||
Total after offsetting | 20’948 | |||||
2024 | ||||||
Intangible assets | 9’675 | – 1’057 | 0 | 141 | 0 | 8’759 |
Financial investments | 800 | 15 | 2’142 | – 43 | 0 | 2’914 |
Derivative financial instruments | 0 | 505 | 0 | 0 | 777 | 1’282 |
Property and equipment | 599 | 91 | 0 | 6 | 0 | 696 |
Provisions | 11’939 | 755 | 0 | – 7 | 0 | 12’688 |
Total | 23’013 | 310 | 2’142 | 97 | 777 | 26’339 |
Offsetting | – 3’351 | |||||
Total after offsetting | 22’989 |
As at 31 December 2024, there were no temporary differences which were not reported as deferred taxes and which in future could be offset with potential tax allowances (previous year: CHF thousands 0).
25Provisions
in CHF thousands | Provisions for legal and litigation risks | Provisions for other business risks and restructuring | Total 2024 | Total 2023 |
As at 1 January | 3’302 | 12’143 | 15’445 | 13’785 |
Provisions applied | – 2’789 | – 3’362 | – 6’151 | – 3’918 |
Increase in provisions recognised in the income statement | 88 | 5’251 | 5’339 | 6’108 |
Decrease in provisions recognised in the income statement | – 178 | – 1’988 | – 2’166 | – 343 |
Currency effects | 105 | 49 | 154 | – 187 |
As at 31 December | 528 | 12’093 | 12’622 | 15’445 |
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Short-term provisions | 3’350 | 9’011 | – 62.8 |
Long-term provisions | 9’272 | 6’434 | 44.1 |
Total | 12’622 | 15’445 | – 18.3 |
Estimates and assumptions are made to assess the amount of provisions required. However, this can mean that substantial uncertainties could exist in relation to the events for which provisions were allocated and their amounts.
Provisions for legal and litigation risks
The LLB Group was able to reach settlements with various parties in legal cases. As a result, it utilised specific provisions for legal and litigation risks amounting to CHF 2.8 million in the 2024 business year.
There were no contingent liabilities in connection with legal and litigation risks.
Provisions for other risks and restructuring measures
In the 2024 business year specific provisions for other business risks amounting to CHF 3.4 million were applied for this purpose. The provisions were utilised principally in connection with the business location strategy for Switzerland and for real estate business. In addition, new provisions were allocated in connection with a turnover tax matter and for restructuring measures.
26Other liabilities
in CHF thousands | 31.12.2024 | 31.12.2023 | +/- % |
Lease liabilities | 24’179 | 27’925 | – 13.4 |
Charge accounts | 15’874 | 11’314 | 40.3 |
Accounts payable | 43’716 | 27’569 | 58.6 |
Settlement accounts | 44’586 | 48’115 | – 7.3 |
Pension plans | 63’514 | 49’326 | 28.8 |
Outstanding holidays / flexi-time | 3’770 | 4’499 | – 16.2 |
Other long-term benefits | 4’703 | 4’166 | 12.9 |
Total other liabilities | 200’341 | 172’913 | 15.9 |
27Share capital
31.12.2024 | 31.12.2023 | +/- % | |
Number of registered shares (fully paid up) | 30’800’000 | 30’800’000 | 0.0 |
Nominal value per registered share (in CHF) | 5 | 5 | 0.0 |
Total nominal value (in CHF thousands) | 154’000 | 154’000 | 0.0 |
28Share premium
in CHF thousands | 2024 | 2023 | +/- % |
As at 1 January | – 15’066 | – 14’923 | 1.0 |
Net movements in treasury shares 1 | – 61 | – 143 | – 57.3 |
As at 31 December | – 15’127 | – 15’066 | 0.4 |
1Contains a change to reserves for security entitlements and realised price gains on treasury shares.
Share entitlements at the LLB
Risk takers whose decisions have a significant impact on the bankʼs risk profile and other employees in selected salary models receive part of their variable salary component in form of share entitlements. The share component of the variable compensation of these employees amounts to at least 50 per cent. The variable component of compensation depends on individual target achievement and the bonus pool available.
In 2024, share entitlements of CHF 3.1 million (44ʼ464 shares at an average price of CHF 70.28) were earned and recognised in personnel expenses. In the previous year, it was CHF 2.5 million (38ʼ824 shares at an average price of CHF 63.68).
29Treasury shares
Quantity | in CHF thousands | |
As at 1 January 2023 | 179’881 | 11’640 |
Purchases | 70’645 | 4’463 |
Disposals | – 42’471 | – 2’748 |
As at 31 December 2023 | 208’055 | 13’356 |
Purchases | 207’630 | 14’751 |
Disposals | – 53’303 | – 3’472 |
As at 31 December 2024 | 362’382 | 24’634 |
The purchases relate to the share repurchase programme launched on 28 August 2023.
Sales of treasury shares represent the transfer of acquired entitlements to eligible employees of the LLB Group after a blocking period of up to six years; no cash was received. The average price per share totalled CHF 65.15 (previous year: CHF 64.70). The proportion of the total share capital transferred to employees was 0.2 per cent (previous year: 0.1 %).
30Retained earnings
in CHF thousands | 2024 | 2023 | +/- % |
As at 1 January | 2’140’361 | 2’056’623 | 4.1 |
Net profit attributable to the shareholders of LLB | 167’106 | 164’570 | 1.5 |
Dividends paid | – 82’565 | – 76’654 | 7.7 |
Increase / (Reduction) in non-controlling interests | 0 | 63 | – 100.0 |
Reclassification not affecting the income statement | 1’261 | – 4’241 | |
As at 31 December | 2’226’164 | 2’140’361 | 4.0 |
31Other reserves
in CHF thousands | 2024 | 2023 | +/- % |
As at 1 January | – 136’250 | – 161’534 | – 15.7 |
Currency effects | 5’061 | – 20’420 | |
Actuarial gains / (losses) of pension plans | – 16’667 | – 24’196 | – 31.1 |
Value changes from financial investments measured at fair value through other comprehensive income | 42’351 | 65’659 | – 35.5 |
Reclassification not affecting the income statement | – 1’261 | 4’241 | |
As at 31 December | – 106’766 | – 136’250 | – 21.6 |
32Non-controlling interests
in CHF thousands | 2024 | 2023 | +/- % |
As at 1 January | 962 | 1’203 | – 20.0 |
Currency effects | 71 | – 63 | |
Non-controlling interests in net profit | 133 | 163 | – 18.1 |
(Dividends paid) / Reduction of nominal value in non-controlling interests | – 134 | – 280 | – 52.1 |
Increase / (Reduction) in non-controlling interests | 9 | – 63 | |
Actuarial gains / (losses) of pension plans | 0 | – 0 | |
Value changes from financial investments measured at fair value through other comprehensive income | 4 | 4 | 17.0 |
As at 31 December | 1’046 | 962 | 8.7 |
33Fair value measurement
Measurement guidelines and classification in the fair value hierarchy
The measurement of the fair value of financial and non-financial assets and liabilities is carried out using various standardised and recognised valuation methods and models. On the basis of their observable and non-observable input factors, the positions are assigned to one of the three levels of fair value hierarchy.
Level 1
Financial and non-financial assets and liabilities, whose prices are quoted for identical assets and liabilities on active markets and which were not calculated on the basis of valuation techniques or models for the determination of fair value.
Level 2
If no market price quotes are available, or if they cannot be extrapolated from active markets, the fair value is determined by means of valuation methods or models which are based on assumptions made on the basis of observable market prices and other market quotes.
Level 3
Input factors are considered in the valuation methods and models to determine the fair value, which are not observable because they are not based on market prices.
Valuation methods and models
The LLB Group employs the market-based approach to determine the fair value of investment funds and shares, which are not traded on an active market or which are not listed.
The income-based approach is used if payment streams or expenses and revenues with financial assets and liabilities form the basis for the fair value measurement. The present or cash value method is used to determine the fair value by discounting the payment streams to the present value on the reporting date. Interest rate curves appropriate for the term and / or foreign currency curves, as well as spot prices form the main basis for this purpose. Forward pricing models are used in the case of futures contracts.
To determine the fair value of financial and non-financial assets and liabilities, which are classified as Level 3 positions, the LLB Group takes over the fair value determined by third parties (estimates made by experts).
The following table shows the most important valuation methods and models together with the key input factors:
Valuation method / model | Inputs | Significant, non-observable inputs | |
Level 2 | |||
Derivative financial instruments | Income approach, present value calculation | Market price of congruent SARON interest rates, foreign currency curves, spot rates | |
Investment funds | Market approach | Market prices of underlying assets | |
Equities | Market approach | Market prices of underlying assets | |
Commercial Papers | Income approach, present value calculation | The underlying interest rate for the contract | |
SNB-Bills | Income approach, present value calculation | The underlying interest rate for the contract | |
Due from banks | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Due to banks | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Loans | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Due to customers | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Bonds | Income approach, present value calculation | Market price of congruent SARON interest rates | |
Level 3 | |||
Infrastructure title | Market approach | Audited financial statements | Illiquidity, special micro-economic conditions |
Investment property | External expert opinions, present value calculation | Prices of comparable properties | Assessment of special property factors, expected expenses and earnings for the property |
Measurement of assets and liabilities, classified as Level 3
Financial investments measured at fair value through other comprehensive income
These financial investments largely relate to non-listed shares in companies having an infrastructure nature, which offer the services necessary or advantageous for the operation of a bank. The largest proportion of the portfolio consists of shares in the SIX Swiss Exchange and in the Pfandbriefbank Schweizerischer Hypothekarinstitute (Swiss Mortgage Institutes). The financial investments are periodically revalued on the basis of current company data and reassessed by third parties using valuation models, respectively.
Investment property
These properties are periodically valued by external experts. The assessments take into consideration such circumstances as the location and condition of the property, as well as the costs and revenues expected in connection with it.
Measurement of fair values through active markets or valuation methods
Positions measured at fair value are recognised on a recurring basis in the balance sheet at fair value. As at 31 December 2024, the LLB Group had no assets which were measured at fair value on a non-recurring basis in the balance sheet; the same applies to liabilities.
Transfers of positions measured at fair value, or of positions for which a fair value exists, to or from a level are generally made at the end of a period. Within the scope of a new bond issue in October 2024, the criteria for the calculation of the fair value of financial investments not measured at fair value was refined. On the basis of this refined criteria, bonds issued by LLB Group are classified as Level 2 instruments. The previous year was adjusted, the fair value is shown as Level 2. No value adjustments were made.
The following tables show the classification of financial and non-financial assets and liabilities of the LLB Group within the fair value hierarchy and their fair value.
in CHF thousands | 31.12.2024 | 31.12.2023 | +/– % |
Assets | |||
Level 1 | |||
Financial investments measured at fair value through profit and loss | 2’753 | 24’120 | – 88.6 |
Financial investments, measured at fair value through other comprehensive income | 1’612’118 | 1’863’056 | – 13.5 |
Precious metal receivables | 99’850 | 66’600 | 49.9 |
Total financial instruments measured at fair value | 1’714’722 | 1’953’775 | – 12.2 |
Precious metals holdings | 73’759 | 68’335 | 7.9 |
Total other assets measured at fair value | 73’759 | 68’335 | 7.9 |
Cash and balances with central banks | 5’936’085 | 6’389’870 | – 7.1 |
Financial investments measured at amortised cost | 1’337’696 | 814’427 | 64.3 |
Total financial instruments not measured at fair value | 7’273’781 | 7’204’297 | 1.0 |
Total Level 1 | 9’062’261 | 9’226’407 | – 1.8 |
Level 2 | |||
Derivative financial instruments | 466’637 | 286’374 | 62.9 |
of which for hedging purpose | 65’511 | 65’800 | – 0.4 |
Financial investments measured at fair value through profit and loss 1 | 27’020 | 32’589 | – 17.1 |
Total financial instruments measured at fair value | 493’656 | 318’963 | 54.8 |
Due from banks | 1’076’823 | 249’471 | 331.6 |
Loans | 16’932’458 | 15’437’166 | 9.7 |
Financial investments measured at amortised cost 2 | 0 | 20’498 | – 100.0 |
Total financial instruments not measured at fair value | 18’009’281 | 15’707’135 | 14.7 |
Total Level 2 | 18’502’938 | 16’026’098 | 15.5 |
Level 3 | |||
Financial investments, measured at fair value through other comprehensive income 3 | 36’420 | 33’116 | 10.0 |
Total financial instruments measured at fair value | 36’420 | 33’116 | 10.0 |
Investment property | 19’311 | 19’241 | 0.4 |
Total other assets measured at fair value | 19’311 | 19’241 | 0.4 |
Total Level 3 | 55’731 | 52’357 | 6.4 |
Total assets | 27’620’930 | 25’304’863 | 9.2 |
1Investment funds and equities
2Commercial Papers and / or SNB-Bills
3Infrastructure titles
in CHF thousands | 31.12.2024 | 31.12.2023 | +/– % |
Liabilities | |||
Level 1 | |||
Precious metal liabilities | 172’857 | 134’550 | 28.5 |
Total financial instruments measured at fair value | 172’857 | 134’550 | 28.5 |
Total Level 1 | 172’857 | 134’550 | 28.5 |
Level 2 | |||
Derivative financial instruments | 346’376 | 337’165 | 2.7 |
of which for hedging purpose | 9’107 | 13’491 | – 32.5 |
Total financial instruments measured at fair value | 346’376 | 337’165 | 2.7 |
Due to banks | 1’104’374 | 949’470 | 16.3 |
Due to customers | 20’462’854 | 19’132’520 | 7.0 |
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’373’711 | 2’014’082 | 17.9 |
Bonds | 760’647 | 528’701 | 43.9 |
Total financial instruments not measured at fair value | 24’701’585 | 22’624’773 | 9.2 |
Total Level 2 | 25’047’961 | 22’961’938 | 9.1 |
Level 3 | |||
Total Level 3 | 0 | 0 | |
Total liabilities | 25’220’818 | 23’096’488 | 9.2 |
Financial investments not measured at fair value
The fair value hierarchy also includes details of financial assets and liabilities which are not measured on a fair value basis, but for which a fair value does exist. In addition to their inclusion in the fair value hierarchy, basically a comparison between the fair value and the carrying amount of the individual categories of financial assets and liabilities is to be disclosed.
The following table shows this comparison only for positions which are not measured at fair value, since for positions measured at fair value the carrying amount corresponds to the fair value. On account of the maturity being more than one year, for specific positions a present value was calculated taking as a basis SARON interest rates appropriate for the duration of the term. In the case of all other positions, the carrying amount represents a reasonable approximation of the fair value.
31.12.2024 | 31.12.2023 | |||
in CHF thousands | Carrying Amount | Fair value | Carrying Amount | Fair value |
Assets | ||||
Cash and balances with central banks | 5’936’085 | 5’936’085 | 6’389’870 | 6’389’870 |
Due from banks 1 | 1’077’871 | 1’076’823 | 250’415 | 249’471 |
Loans | 16’488’886 | 16’932’458 | 15’286’758 | 15’437’166 |
Financial investments measured at amortised cost | 1’324’216 | 1’337’696 | 834’106 | 834’924 |
Liabilities | ||||
Due to banks | 1’103’678 | 1’104’374 | 950’541 | 949’470 |
Due to customers 1 | 20’471’650 | 20’462’854 | 19’233’782 | 19’132’520 |
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’310’300 | 2’373’711 | 2’030’887 | 2’014’082 |
Bonds | 751’855 | 760’647 | 551’090 | 528’701 |
1Adjusted to consider the claims or liabilities from precious metals accounts due to the separate disclosure in the fair value hierarchy
34Netting of financial assets and financial liabilities
In order to reduce the credit risks in relation to securities repurchasing transactions (repos) and derivatives, the LLB Group has concluded agreements with its counterparties, which permit netting. These include the Swiss Framework Agreement for Repo Transactions (multi-lateral version) and also ISDA master agreements.
The netting agreements serve to protect the LLB Group against losses arising in connection with possible insolvency proceedings and other situations. They are only employed if the counterparty cannot fulfil its commitments. Both securities (repos) and cash (derivatives) serve as collateral.
In its daily business, the LLB Group does not conduct balance sheet netting with the financial assets and financial liabilities of balance sheet transactions because the legal requirements for netting are not fulfilled.
The following table provides an overview of the financial assets and financial liabilities which are subject to an enforceable netting agreement or similar agreements.
Potential netting amounts | ||||
in CHF thousands | On the balance sheet recognised amounts | Financial instruments | Financial collaterals | Amounts after potential netting |
31.12.2023 | ||||
Financial assets subject to off-setting, enforceable netting agreements or similar arrangements | ||||
Reverse repurchase agreements | 0 | 0 | 0 | 0 |
Positive replacement values | 255’458 | 123’598 | 99’892 | 31’968 |
Total assets | 255’458 | 123’598 | 99’892 | 31’968 |
Financial liabilities subject to off-setting, enforceable netting agreements or similar arrangements | ||||
Repurchase agreements | 160’084 | 0 | 160’084 | 0 |
Negative replacement values | 147’106 | 123’598 | 15’154 | 8’354 |
Total liabilities | 307’190 | 123’598 | 175’238 | 8’354 |
31.12.2024 | ||||
Financial assets subject to off-setting, enforceable netting agreements or similar arrangements | ||||
Reverse repurchase agreements | 600’094 | 0 | 0 | 600’094 |
Positive replacement values | 137’831 | 101’942 | 13’144 | 22’745 |
Total assets | 737’925 | 101’942 | 13’144 | 622’839 |
Financial liabilities subject to off-setting, enforceable netting agreements or similar arrangements | ||||
Repurchase agreements | 0 | 0 | 0 | 0 |
Negative replacement values | 302’994 | 101’942 | 180’058 | 20’994 |
Total liabilities | 302’994 | 101’942 | 180’058 | 20’994 |
The LLB Group also conducts securities lending and borrowing transactions as an principal. To reduce the risks associated with such transactions, Global Master Securities Lending Agreements (GMSLA) are concluded with the counterparties. Both securities and cash funds are employed as collateral.