Information unaudited Information ungeprüftConsolidated interim management report

Income statement

In the first half of 2025, the LLB Group earned a net profit of CHF 91.0 million, a Group interim business result 0.9 per cent higher than in the same period of the previous year (first half of 2024: CHF 90.2 million). Undiluted earnings per share stood at CHF 2.99 (first half of 2024: CHF 2.95).

Operating income increased by 10.5 per cent to CHF 312.8 million in the first half of 2025 (first half of 2024: CHF 283.0 million).

In comparison with the same period in the previous year, interest income before expected credit losses fell by 6.8 per cent to CHF 63.1 million on account of lower interest rate levels (first half of 2024: CHF 67.7 million). Interest income decreased by 24.6 per cent to CHF 197.1 million (first half of 2024: 261.2 million). Interest expense fell by 30.8 per cent to CHF 134.0 million (first half of 2024: CHF 193.5 million).

In the first half of 2025, risk provisions for credit losses were reduced by net CHF 4.0 million (first half of 2024: CHF 11.0 million net release).

In comparison with the previous year, net fee and commission income rose by CHF 24.0 million to CHF 126.3 million (first half of 2024: CHF 102.3 million). The newly acquired ZKB Österreich contributed around CHF 18 million to this result. Furthermore, the average portfolio volume increased by around CHF 8 billion in comparison with the equivalent period in the previous year. As a result, higher portfolio-related fees were collected; they increased to CHF 92.6 million (first half of 2024: CHF 71.3 million). Trading activity also expanded with a corresponding positive effect on net brokerage earnings. Transaction-related revenues improved by 8.5 per cent to CHF 33.7 million (first half of 2024: CHF 31.1 million).

Net trading income climbed during the report period by 20.4 per cent to CHF 110.1 million (first half of 2024: CHF 91.4 million). Foreign exchange business was the largest contributor to this success, rising to CHF 107.7 million, CHF 18.9 million higher than in the same period of the previous year (first half of 2024: CHF 88.8 million). The LLB Group’s trading income benefitted from the investing of client foreign currency assets in Swiss franc currency swaps and the further expansion in interest differential between the key currencies. The decrease in Swiss franc interest rates coupled with stable US dollar interest rates had a positive effect.

Income from financial investments stood at CHF 7.2 million, slightly up on the previous year’s level (first half of 2024: CHF 6.9 million).

In comparison with the previous year, other income fell by CHF 1.5 million to CHF 2.0 million (first half of 2024: CHF 3.6 million). In the previous year, other income contained an amount of CHF 1.3 million from the sale of a value-adjusted client receivable.

At CHF 204.6 million, operating expenses in the first half of 2025 were 15.5 per cent higher than in the previous year (first half of 2024: CHF 177.2 million). The increase was largely attributable to the takeover of the former ZKB Österreich. Within the scope of the takeover of ZKB Österreich, one-time integration costs totalling CHF 7.1 million were incurred in the first half of 2025. Without these integration costs and the proportional operating expenses of the former ZKB Österreich, operating expenses would have risen by only 4.9 per cent or CHF 8.7 million. This would represent a slower growth in expenses in comparison with the previous year.

The acquisition led to an increase in headcount of around 100 employees. Accordingly, personnel expenses grew by 14.8 per cent, or CHF 16.8 million, to CHF 130.4 million (first half of 2024: CHF 113.7 million). In addition to the growth in personnel, provisions for restructuring measures of CHF 3.8 million added to personnel expenses.

At CHF 54.7 million, general and administrative expenses were 18.7 per cent above the previous year’s level (first half of 2024: CHF 46.1 million). A large proportion of the increase in general and administrative expenses amounting to CHF 5.5 million was attributable to the former ZKB Österreich.

Depreciation rose by 11.4 per cent to CHF 19.5 million (first half of 2024: CHF 17.5 million).

At 65.7 per cent, the Cost Income Ratio was at about the same level as in the previous year (first half of 2024: 65.2 %) and therefore still in the self-defined strategic target range of maximum 65 per cent. Without considering the integration of the former ZKB Österreich, the Cost Income Ratio would have stood at 63.8 per cent.

Balance sheet

The consolidated balance sheet total climbed to CHF 28.1 billion (31.12.2024: CHF 27.8 billion).

Equity stood at CHF 2.3 billion as at 30 June 2025 (31.12.2024: CHF 2.2 billion). The Tier 1 ratio stood at 18.4 per cent (31.12.2024: 18.8 %). The stricter capital adequacy requirements stipulated by CRR III were the principal reason for this decrease.

The return on equity amounted to 8.1 per cent (first half of 2024: 8.4 %).

Business volume

Compared to 31 December 2024, the business volume expanded by 3.3 per cent or CHF 3.7 billion to CHF 117.2 billion (31.12.2024: CHF 113.5 billion), and therefore a new record level.

In comparison with 31 December 2024, loans to customers decreased by 1.2 per cent to CHF 16.3 billion (31.12.2024: CHF 16.5 billion), whereby mortgage loans fell by 1.9 per cent to CHF 14.5 billion (31.12.2024: CHF 14.8 billion). The first half year was utilised to enhance the profitability of the lending book. Low-margin loans were reduced to boost profitability, but not for risk considerations rather to strengthen earning power.

Thanks to the acquired client assets of ZKB Österreich (CHF 3.2 billion) and continuing net new money inflows, client assets under management rose by 4.0 per cent to CHF 100.9 billion and therefore exceeded the CHF 100-billion mark for the first time. This result was based on robust organic and acquisition growth totalling CHF 4.4 billion.

In the first half of 2025, the LLB Group registered a net new money inflow of CHF 1.4 billion (first half of 2024: CHF 792 million). Both market divisions contributed to this growth.

Outlook

For the full 2025 year, the LLB Group expects to attain a lower business result than in the previous year. The main reasons for this lower result are the substantially lower interest rates – especially in the Swiss franc region – as well one-time integration costs in connection with the takeover of ZKB Österreich. Furthermore, it can be assumed that current geopolitical and economic uncertainties will persist. Nevertheless, the LLB Group is well prepared for the future – it has in place a strategy which works, as well as a diversified business model. Moreover, the LLB Group has already proven many times over that it is successful even during challenging periods.