Retail & Corporate Banking
Information unaudited Information ungeprüft Retail & Corporate Banking
The Retail & Corporate Banking segment encompasses the universal banking business in the domestic markets of Liechtenstein and Switzerland and offers the entire spectrum of banking and financial services. Traditionally, savings and mortgage lending business have always played a very important role. This is supplemented by financial planning, corporate pension provisioning, as well as specific investment advice and asset management for clients having available assets of up to CHF 0.5 million. It also cares for retail and private clients as well locally oriented private banking clients in the German-speaking region (Liechtenstein / Switzerland / Germany).
In retail and corporate banking business modern bank branches and web-based services are combined. LLB has three branches in Liechtenstein, as well as the business locations of LLB Schweiz in the Swiss regions of Linthgebiet, Zurichsee, Sarganserland, Ausserschwyz, Winterthur and Thurgau.
Business segment result
The segment profit before taxes rose by 55.7 per cent to CHF 95.7 million.
Interest differential business, which comprises the largest proportion of earnings in the Retail & Corporate Banking Division, posted a 31.0 per cent increase. This was attributable to the continual growth of mortgage lending business and interest rates. In the first half of 2024 risk provisions for credit losses were reduced by net CHF 11.0 million (first half of 2023: CHF 2.1 million net allocation). Several long-standing legal cases were settled and brought to a successful conclusion. Fee and commission income also developed positively to reach CHF 47.7 million, and therefore exceeded the result in the equivalent period of the previous year (first half of 2023: CHF 45.1 million). In total, operating income climbed by nearly 32 per cent to CHF 166.2 million. The gross margin again improved and stood at 88 basis points. At 8.9 per cent, the rise in operating expenses was substantially lower than the increase in operating income. Higher efficiency was reflected in the significantly improved Cost Income Ratio of 45.4 per cent.
Following the extremely strong growth attained in the previous year, the division experienced a net new money outflow of around CHF 100 milllion in the report period.
The segment again achieved positive growth in its lending business. Loans to clients rose by CHF 224 million. The business volume remained stable and stood at CHF 35.7 billion.
Segment reporting
|
in CHF thousands |
First half 2024 |
First half 2023 |
+ / – % |
|
Net interest income |
95'867 |
73'208 |
31.0 |
|
Expected credit losses |
11'019 |
– 2'093 |
|
|
Net interest income after expected credit losses |
106'886 |
71'115 |
50.3 |
|
Net fee and commission income |
47'749 |
45'063 |
6.0 |
|
Net trading income |
9'270 |
9'277 |
– 0.1 |
|
Other income |
2'298 |
770 |
198.4 |
|
Total operating income |
166'204 |
126'224 |
31.7 |
|
Personnel expenses |
– 26'340 |
– 22'301 |
18.1 |
|
General and administrative expenses |
– 2'960 |
– 2'619 |
13.0 |
|
Depreciation |
– 27 |
– 25 |
5.2 |
|
Services (from) / to segments |
– 41'183 |
– 39'808 |
3.5 |
|
Total operating expenses |
– 70'509 |
– 64'753 |
8.9 |
|
Segment profit before tax |
95'694 |
61'471 |
55.7 |
Performance figures
|
|
First half 2024 |
First half 2023 |
|
Gross margin (in basis points) 1 |
88.3 |
75.8 |
|
Cost Income Ratio (in per cent) 1 |
45.4 |
50.5 |
|
Net new money (in CHF millions) 1 |
– 103 |
594 |
|
Growth of net new money (in per cent) 1 |
– 0.5 |
3.1 |
1 Definition available under www.llb.li/investors-apm
Additional information
|
|
30.06.2024 |
31.12.2023 |
+ / – % |
|
Business volume (in CHF millions) 1 |
35'680 |
35'602 |
0.2 |
|
Assets under management (in CHF millions) 1 |
20'806 |
20'952 |
– 0.7 |
|
Loans (in CHF millions) |
14'874 |
14'650 |
1.5 |
|
Employees (full-time equivalents, in positions) |
301 |
273 |
10.4 |
1 Definition available under www.llb.li/investors-apm