Information unaudited Information ungeprüftNotes to the consolidated balance sheet and off-balance sheet transactions
10Financial investments
in CHF thousands | 30.06.2025 | 31.12.2024 | +/- % |
Financial investments measured at amortised cost | |||
Debt instruments | |||
listed | 1’257’600 | 1’324’216 | – 5.0 |
Total debt instruments | 1’257’600 | 1’324’216 | – 5.0 |
Total financial investments measured at amortised cost | 1’257’600 | 1’324’216 | – 5.0 |
Financial investments measured at fair value through profit and loss | |||
Debt instruments | |||
listed | 0 | 2’744 | – 100.0 |
unlisted | 27’489 | 26’892 | 2.2 |
Total debt instruments | 27’489 | 29’636 | – 7.2 |
Equity instruments | |||
listed | 11 | 9 | 14.6 |
unlisted | 293 | 127 | 130.6 |
Total equity instruments | 304 | 137 | 122.7 |
Total financial investments measured at fair value through profit and loss | 27’793 | 29’772 | – 6.6 |
Financial investments, measured at fair value through other comprehensive income | |||
Debt instruments | |||
listed | 1’184’695 | 1’404’023 | – 15.6 |
Total debt instruments | 1’184’695 | 1’404’023 | – 15.6 |
Equity instruments | |||
listed | 212’809 | 208’095 | 2.3 |
unlisted | 36’904 | 36’420 | 1.3 |
Total equity instruments | 249’714 | 244’515 | 2.1 |
Total financial investments, measured at fair value through other comprehensive income | 1’434’409 | 1’648’539 | – 13.0 |
Total financial investments | 2’719’801 | 3’002’527 | – 9.4 |
The equity instruments recognised at fair value through other comprehensive income consist of strategic investments of an infrastructure nature, which are unlisted (see note 13), as well as instruments 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.
Due to adjustments in the weighting of individual securities within the SMI and from a sustainability perspective, the LLB also adjusted its own portfolio. Various disposals resulted in a profit of CHF 4.8 million (previous year: profit of CHF 1.3 million). The fair value of the transactions amounted to CHF 10.2 million (previous year: CHF 7.1 million). The profit was recognised directly in retained earnings.
11Debt issued
in CHF thousands | 30.06.2025 | 31.12.2024 | +/- % |
Medium-term notes 1 | 100’578 | 132’875 | – 24.3 |
Shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions 2 | 2’265’302 | 2’139’291 | 5.9 |
Bonds | 955’730 | 751’855 | 27.1 |
Carrying amount adjustment from the fair value hedge accounting portfolio | 29’655 | 38’135 | – 22.2 |
Total debt issued | 3’351’265 | 3’062’154 | 9.4 |
1The average interest rate was 1.0 per cent as at 30 June 2025 (31.12.2024: 1.0 %).
2The average interest rate was 0.9 per cent as at 30 June 2025 (31.12.2024: 0.9 %).
3The presentation as a separate line item led to an adjustment of the previous year's value in the position "Medium-term notes".
The following table provides further details on the bonds issued.
in CHF thousands | |||||||||
Year issued | Name | ISIN | Currency | Maturity | Effective annual interest rate in % | Nominal interest rate in % | Nominal value | 30.06.2025 | 31.12.2024 |
2019 | Liechtensteinische Landesbank AG 0.125% Senior Preferred Anleihe 2019 – 2026 | CH0419041204 | CHF | 28.05.2026 | 0.106 % | 0.125 % | 150’000 | 150’043 | 150’151 |
2019 | Liechtensteinische Landesbank AG 0.000% Senior Preferred Anleihe 2019 – 2029 | CH0419041527 | CHF | 27.09.2029 | – 0.133 % | 0.000 % | 100’000 | 100’568 | 100’635 |
2020 | Liechtensteinische Landesbank AG 0.300% Senior Preferred Anleihe 2020 – 2030 | CH0536893255 | CHF | 24.09.2030 | 0.315 % | 0.300 % | 150’000 | 150’226 | 149’992 |
2023 | Liechtensteinische Landesbank AG 2.5 % Senior Non-Preferred Anleihe 2023 – 2030 | CH1306117040 | CHF | 22.11.2030 | 2.522 % | 2.500 % | 150’000 | 152’077 | 150’211 |
2024 | Liechtensteinische Landesbank AG 1.6% Senior Preferred Anleihe 2024 – 2034 | CH1380910237 | CHF | 30.10.2034 | 1.581 % | 1.600 % | 200’000 | 202’435 | 200’866 |
2025 | Liechtensteinische Landesbank AG 1.7% Senior Non-Preferred Anleihe 2025 – 2033 | CH1423931596 | CHF | 22.04.2033 | 1.717 % | 1.700 % | 200’000 | 200’382 | |
12Provisions
in CHF thousands | Provisions for legal and litigation risks | Provisions for other business risks and restructuring | Total 2025 | Total 2024 |
As at 1 January | 528 | 12’093 | 12’622 | 15’445 |
Provisions applied | 0 | – 296 | – 296 | – 6’151 |
Increase in provisions recognised in the income statement | 1’727 | 6’194 | 7’921 | 5’339 |
Decrease in provisions recognised in the income statement | 0 | – 649 | – 649 | – 2’166 |
Currency effects | – 3 | – 50 | – 53 | 154 |
Additions from changes to scope of consolidation | 0 | 834 | 834 | 0 |
As at 30 June 2025 / 31 December 2024 | 2’252 | 18’126 | 20’378 | 12’622 |
Estimates and assumptions are made to assess the amount of provisions required. This is associated with significant uncertainties regarding the occurrence of the provision events as well as their amount.
Provisions for legal and litigation risks
In the first half of 2025, the LLB Group increased its provisions for legal and litigation risks for two existing legal cases in Switzerland and Austria by CHF 1.7 million.
There were no contingent liabilities in connection with legal and litigation risks.
Provisions for other business risks and restructuring
Within the scope of the integration of LLB Bank AG (formerly ZKB Österreich) in the LLB Group, provisions amounting to CHF 5.7 million were allocated in the first half of 2025. Of these, CHF 3.8 million were provisions for restructuring measures. These are reported under personnel expenses. Furthermore, CHF 1.9 million were set aside for an IT contract containing potential service payments for services that will not be utilised for the period 2026–2029. These are reported under general and administrative expenses.
13Fair 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 on active markets for identical assets and liabilities 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 techniques 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 techniques 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 | |
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 material 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, or with the aid of external valuation models.
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 30 June 2025, 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 to or from a level are generally made at the end of a period. In the financial year, there were no material transfers between Level 1, Level 2 and Level 3 financial instruments.
The following table shows 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 | 30.06.2025 | 31.12.2024 | +/– % |
Assets | |||
Level 1 | |||
Financial investments measured at fair value through profit and loss | 11 | 2’753 | – 99.6 |
Financial investments, measured at fair value through other comprehensive income | 1’397’504 | 1’612’118 | – 13.3 |
Precious metal receivables | 82’177 | 99’850 | – 17.7 |
Total financial instruments measured at fair value | 1’479’692 | 1’714’722 | – 13.7 |
Precious metals holdings | 113’955 | 73’759 | 54.5 |
Total other assets measured at fair value | 113’955 | 73’759 | 54.5 |
Cash and balances with central banks | 6’051’979 | 5’936’085 | 2.0 |
Financial investments measured at amortised cost | 1’277’059 | 1’337’696 | – 4.5 |
Total financial instruments not measured at fair value | 7’329’038 | 7’273’781 | 0.8 |
Total Level 1 | 8’922’685 | 9’062’261 | – 1.5 |
Level 2 | |||
Derivative financial instruments | 274’751 | 466’637 | – 41.1 |
of which for hedging purpose | 55’045 | 65’511 | – 16.0 |
Financial investments measured at fair value through profit and loss 1 | 27’782 | 27’020 | 2.8 |
Total financial instruments measured at fair value | 302’533 | 493’656 | – 38.7 |
Due from banks | 1’927’235 | 1’076’823 | 79.0 |
Loans | 16’743’048 | 16’932’458 | – 1.1 |
Total financial instruments not measured at fair value | 18’670’283 | 18’009’281 | 3.7 |
Total Level 2 | 18’972’816 | 18’502’938 | 2.5 |
Level 3 | |||
Financial investments, measured at fair value through other comprehensive income 2 | 36’904 | 36’420 | 1.3 |
Total financial instruments measured at fair value | 36’904 | 36’420 | 1.3 |
Investment property | 19’281 | 19’311 | – 0.2 |
Total other assets measured at fair value | 19’281 | 19’311 | – 0.2 |
Total Level 3 | 56’185 | 55’731 | 0.8 |
Total assets | 27’951’686 | 27’620’930 | 1.2 |
1Investment funds and equities
2Infrastructure titles
in CHF thousands | 30.06.2025 | 31.12.2024 | +/– % |
Liabilities | |||
Level 1 | |||
Precious metal liabilities | 195’211 | 172’857 | 12.9 |
Total financial instruments measured at fair value | 195’211 | 172’857 | 12.9 |
Total Level 1 | 195’211 | 172’857 | 12.9 |
Level 2 | |||
Derivative financial instruments | 270’380 | 346’376 | – 21.9 |
of which for hedging purpose | 8’156 | 9’107 | – 10.4 |
Total financial instruments measured at fair value | 270’380 | 346’376 | – 21.9 |
Due to banks | 1’129’150 | 1’104’374 | 2.2 |
Due to customers | 20’526’480 | 20’462’854 | 0.3 |
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’464’314 | 2’373’711 | 3.8 |
Bonds | 966’908 | 760’647 | 27.1 |
Total financial instruments not measured at fair value | 25’086’852 | 24’701’585 | 1.6 |
Total Level 2 | 25’357’232 | 25’047’961 | 1.2 |
Level 3 | |||
Total Level 3 | 0 | 0 | |
Total liabilities | 25’552’443 | 25’220’818 | 1.3 |
Financial instruments 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.
30.06.2025 | 31.12.2024 | |||
in CHF thousands | Carrying amount | Fair value | Carrying amount | Fair value |
Assets | ||||
Cash and balances with central banks | 6’051’979 | 6’051’979 | 5’936’085 | 5’936’085 |
Due from banks 1 | 1’927’815 | 1’927’235 | 1’077’871 | 1’076’823 |
Loans | 16’286’487 | 16’743’048 | 16’488’886 | 16’932’458 |
Financial investments measured at amortised cost | 1’257’600 | 1’277’059 | 1’324’216 | 1’337’696 |
Liabilities | ||||
Due to banks | 1’129’230 | 1’129’150 | 1’103’678 | 1’104’374 |
Due to customers 1 | 20’544’103 | 20’526’480 | 20’471’650 | 20’462’854 |
Medium-term notes and shares in bond issues of the Swiss Regional or Cantonal Banks' Central Bond Institutions | 2’365’880 | 2’464’314 | 2’310’300 | 2’373’711 |
Bonds | 955’730 | 966’908 | 751’855 | 760’647 |
1Adjusted to consider the claims or liabilities from precious metals accounts due to the separate disclosure in the fair value hierarchy
14Off-balance sheet transactions
in CHF thousands | 30.06.2025 | 31.12.2024 | +/- % |
Contract volumes of derivative financial instruments | 23’334’602 | 24’929’063 | – 6.4 |
Contingent liabilities | 64’636 | 60’008 | 7.7 |
Credit risks | 895’470 | 824’253 | 8.6 |
Fiduciary transactions | 97’540 | 127’731 | – 23.6 |
Securities received as collateral within the scope of securities lending or securities received in connection with reverse repurchase agreements, which are capable of being resold or further pledged without restrictions | 1’612’177 | 604’694 | 166.6 |