Information unaudited Information ungeprüftStrategy and organisation

Self-conception

LLB has a long tradition as the oldest bank in Liechtenstein. However it is not just our more than 160 years of history that make us a trusted partner for clients, investors and employees. It is also our clear vision, our ambitious strategy and our values-based corporate culture that make us into “their bank”.

ACT-26 strategy

The ACT-26 strategy is the next logical step in the LLB Group’s development. ACT-26 stands for taking action and also for acceleration and transformation (ACcelerate and Transform).

Core elements

The strategy is based on three elements:

• Growth: Over the next five-year strategy period, the LLB Group will once again strive to significantly increase its business volume through a combination of accelerated organic growth and targeted acquisitions. The basis for this expansion is the security and stability of the LLB Group combined with award-winning investment expertise and investment performance for private and institutional clients. In retail and corporate banking business, we also want to expand our position in Liechtenstein and Switzerland, as well as in private banking in Germany (see chapter Markets & clients).
• Efficiency: We attach great importance to providing the best personal advisory services to our clients. For this purpose, we employ a hybrid advisory model that combines automation and digital availability with classical advisory services. The existing client platform will be continually modernised and the range of services will be expanded for all client groups. We will adopt an agile approach to be able to react quickly to the changing needs of clients. At the same time, we will also be streamlining, standardising and automating our core processes to increase efficiency and make the bank more scalable (see chapter Digitalisation).
• Sustainability: Sustainability has always enjoyed a high priority at LLB. Therefore, we have set ourselves the goal of becoming completely climate-neutral ten years earlier than most of our competitors. On the way to achieving this we will significantly reduce the greenhouse gas emissions of our banking operations and those of our client portfolios. In addition, we want to expand our range of ecologically and socially responsible products (see Sustainability statement).

Ambitious growth and financial goals

In implementing the core elements of our corporate strategy, we are pursuing ambitious goals:

• Growth: Growth in terms of net new money and net new loans should be at least three per cent annually.
• Efficiency: In 2026, the Cost Income Ratio should not exceed 65 per cent.
• Sustainability: The complete carbon emissions of the LLB Group should be reduced to net zero by no later than 2040.

In addition to this, we are targeting a Tier 1 ratio of over 16 per cent.

Half-time assessment of the ACT-26 strategy

We are on course and proceeding as planned with the implementation of our corporate strategy. The half-time assessment confirmed that important interim targets had been attained with the three strategic core elements. The only exception being with the core element “Efficiency”, where we are currently slightly behind our own target. This is due principally to the large-scale investments made in our strategy and was anticipated. During the second half of the strategy period, we shall therefore focus more intensively on the issue of cost development.

Strategic goals of the LLB Group until 2026

In order to continue growing sustainably, the LLB Group is investing in Switzerland, Germany and Austria. By strengthening our business presence locally, we want to exploit the growth potential offered by these markets. In Switzerland therefore we have opened two new business locations in Zurich and St. Gallen. In 2024, we established a branch office in Germany for the first time with business locations in Munich, Frankfurt and Düsseldorf. Our takeover of ZKB (Österreich) AG in Austria is also a powerful signal towards growth and expanding our market position.

We plan expenditure totalling CHF 250 million for the implementation of our ACT-26 strategy. In addition to CHF 100 million for the digital transformation, we shall invest in our building infrastructure, hard and software, as well as in strategic projects.

Attractive and sustainable dividend policy

The LLB Group is continuing to pursue an attractive and sustainable dividend policy. The distribution ratio amounts to over 50 per cent of Group net profit. Moreover, the LLB Group intends to continually increase the dividend.

Structure and organisation of the LLB Group

The LLB Group has a divisional organisational structure. In addition to the two market divisions “Retail & Corporate Banking” and “International Wealth Management”, the management structure includes the functions of Group Chief Executive Officer (Group CEO), Group Chief Digital & Operating Officer (Group CDO) and Group Chief Financial Officer (Group CFO).

The strategic focus of ACT-26 will also be consistently implemented at the organisational level. Clients and technological change are at the heart of the transition.

Dual positioning

We intend to achieve our ambitious growth and financial objectives through a clear dual positioning in the market: a universal bank with strong local ties on the one hand and a sustainable international private bank on the other.

The LLB Group’s business model is based on two profitable market divisions:

• The “Retail & Corporate Banking Division” services locally oriented private banking clients in Liechtenstein, Switzerland and Germany, as well as corporate and private clients in Liechtenstein and Switzerland (see chapter Retail & Corporate Banking).
• The “International Wealth Management Division” cares for Austrian and international private banking clients, as well as institutional and investment fund clients (see chapter International Wealth Management).

Group structure

We have a presence in the market regions of Liechtenstein, Switzerland and Austria with one bank each:

• Liechtensteinische Landesbank AG
• LLB (Österreich) AG
• LLB (Schweiz) AG

In addition, the LLB Group has two competence centres in the areas of asset management and fund services (see chapter Markets & clients).

Corporate culture

In addition to strategy and structure, the culture of a company is one of the most important factors in its success. The LLB Group is committed to a concept of banking with a binding system of values. Our vision of banking is based on the idea of managing material values with a clearly defined system of principles.

It is only through living and living up to a (corporate) culture that a company can achieve success. For this reason, at the LLB Group we implement various measures to ensure that our culture is firmly established in the minds of employees and managers.

LLB brand

Since 2023, all the companies of the LLB Group have operated under the collective LLB brand. The new, modern logo is distinctive and international and is targeted at a young audience. This target group already forms the majority of our clientele. At the same time, this one-brand strategy strengthens the growth ambitions of our corporate strategy.

Our corporate identity is based on our values: integrity, respectful, excellence and passionate. These characterise the way we deal with each other and the quality of our services:

Personal integrity drives our employees to create clarity and reliability, they conduct themselves respectfully and in a partner-like manner, achieve excellent results and are always enthusiastic about their work.