Information unaudited Information ungeprüftConsolidated management report

Income statement

In the 2024 business year, the LLB Group earned a net profit of CHF 167.2 million, a Group business result that was 1.5 per higher than in the previous year (2023: CHF 164.7 million). Undiluted earnings per share stood at CHF 5.47 (2023: CHF 5.37).

Operating income in 2024 rose by 4.4 per cent to CHF 565.8 million (2023: CHF 541.8 million).

Net interest income before expected credit losses fell year-on-year by 18.4 per cent to CHF 134.1 million (2023: CHF 164.4 million). Interest income increased by 8.4 per cent to CHF 496.9 million (2023: 458.4 million). On account of the changed interest rate levels and growth in lending activity, interest income from loans to clients, in particular, increased again. In contrast, interest expense climbed by 23.4 per cent to CHF 362.8 million (2023: CHF 294.0 million). In addition to the generally higher interest rate level, reallocations to fixed-interest products also contributed to this development.

Risk provisions for expected credit losses in the 2024 business year were reduced by net CHF 9.2 million (2023: CHF 0.2 million net allocation). Settlements were reached in several long-standing legal cases enabling then to be brought to a successful close.

In comparison with the previous year, net fee and commission income increased by CHF 14.0 million to CHF 214.0 million (2023: CHF 200.0 million). The volume of assets held in asset management and investment advisory mandates expanded by over 14 per cent, enabling higher portfolio-dependent fees to be collected. These rose to CHF 153.3 million (2023: CHF 143.1 million). Performance fees of CHF 8.7 million contributed to the higher portfolio-dependent revenues as well. Transaction-related fees also improved, rising to CHF 60.7 million, slightly above the previous year (2023: CHF 57.0 million). Thanks to increased trading activity, net brokerage fees posted a positive result.

Net trading income climbed by 15.4 per cent to CHF 199.9 million (2023: CHF 173.2 million). Foreign exchange business was largely responsible for this growth, rising by CHF 24.3 million to CHF 196.0 million (2023: CHF 171.7 million). The LLB Group benefitted here from the investment of customer deposits in foreign currencies in Swiss franc currency swaps. The interest rate differential between foreign currencies and the Swiss franc had a positive effect. The more substantial reductions in Swiss franc interest rates relative to those of foreign currencies amplified this effect in the 2024 business year.

Income from financial investments stood at CHF 6.2 million, slightly under the previous year’s level (2023: CHF 7.3 million).

Other income climbed by CHF 5.3 million to CHF 2.4 million in comparison with the previous year (2023: CHF minus 2.9 million). Several outstanding loan recoveries were achieved 2024. Furthermore, other income in the previous year was adversely affected by market-related valuation adjustments on real estate.

At CHF 369.5 million, operating expenses were 6.1 per cent higher than in the previous year (2023: CHF 348.4 million).

Personnel expenses rose by 12.1 per cent or CHF 25.3 million to CHF 234.7 million (2023: CHF 209.5 million). The increase in personnel expenses was in line with expectations and reflects the investments made in the implementation of the ACT-26 strategy. In line with its strategy, the LLB Group created around 70 new jobs in the last twelve months, particularly in its new three business bases in Germany and in Switzerland at the two business locations. In addition, the LLB Group further strengthened its professional expertise in the digitalisation field. Personnel expenses also increased due to inflation related salary adjustments.

At CHF 98.4 million, general and administrative expenses were 1.5 per cent lower than in the previous year (2023: CHF 99.9 million). Costs were held at a stable level in spite of the growth achieved.

Depreciation decreased by 6.8 per cent to CHF 36.4 million (2023: CHF 39.0 million). The reduction was largely attributable to the higher level of depreciation recorded in the previous year in connection with the business location strategy in Switzerland.

As expected, the Cost Income Ratio rose to 66.4 per cent (2023: 64.3 %) on account of investments made in line with strategy.

Balance sheet

The consolidated balance sheet total increased to CHF 27.8 billion (31.12.2023: CHF 25.7 billion).

Equity capital amounted to CHF 2.2 billion as at 31 December 2024 (31.12.2023: CHF 2.1 billion). The Tier 1 ratio stood at 18.8 per cent (31.12.2023: 19.8 %). The return on equity amounted to 7.7 per cent (2023: 7.9 %).

Business volume

Compared to 31 December 2023, the business volume expanded by 11.0 per cent or CHF 11.3 billion to CHF 113.5 billion (31.12.2023: CHF 102.2 billion), a new record level.

In the 2024 business year, the LLB Group registered a net new money inflow of CHF 2.8 billion (2023: CHF 1.4 billion). The growth was achieved in all three booking centres as well as in the two marketing divisions and was therefore broadly based.

Thanks to the positive market performance and net new money inflows, client assets under management climbed by 11.6 per cent to CHF 97.0 billion (31.12.2023: CHF 86.9 billion).

Loans to customers climbed by 7.9 per cent to CHF 16.5 billion compared with the previous year (31.12.2023: CHF 15.3 billion), whereby mortgage loans grew by 7.3 per cent to CHF 14.8 billion (31.12.2023: CHF 13.8 billion). The largest proportion of this growth was achieved through collateral loans extended against income-generating real estate portfolios in Switzerland.

Outlook

The business development in recent years has shown that, with its ACT-26 strategy, the LLB Group has in place a clear, forward-looking strategy which works. The LLB Group stands for the highest level of stability and security, it enjoys the full confidence of its clients and is well prepared for the future. However, the increased global insecurity will probably continue. On account of the changed market environment, a lower business result than in the previous year is expected in 2025. This is attributable to the sharply falling interest rate levels, especially in Swiss francs, as well as one-time integration costs caused by the take over of ZKB Österreich.