Business segment result
The LLB Group reports the structural contribution from interest business and the valuation of interest rate hedging instruments, as well as income from financial investments under the Corporate Center.
Operating income rose from CHF 18.0 million to CHF 80.1 million. A slight increase in interest rates during the second half year had a positive effect on the valuation of interest rate swaps from the perspective of the reporting date. The valuation of financial investment also had a positive influence on operating income, leading to a profit from financial investments of CHF 21.8 million. In addition, income from interest business increased, which was attributable to the higher structural contribution. Operating expenses climbed to CHF 86.8 million. Provisions for legal and litigation risks, the expansion of personnel in the innovation, compliance and risk management areas in line with LLB strategy, as well as higher accruals for variable salary components led to the rise in expenses.
The segment profit before tax stood at minus CHF 6.7 million (2015: minus CHF 35.4 million).
| Download |
in CHF thousands |
2016 |
2015 |
+/− % |
|||
|---|---|---|---|---|---|---|
Net interest income |
27'994 |
18'471 |
51.6 |
|||
Credit loss (expense) / recovery |
0 |
0 |
|
|||
Net interest income after credit loss expense |
27'994 |
18'471 |
51.6 |
|||
Net fee and commission income |
–4'914 |
–2'173 |
126.1 |
|||
Net trading income |
25'917 |
–246 |
|
|||
Net income from financial investments at fair value |
21'836 |
–736 |
|
|||
Share of net income of joint venture |
0 |
–13 |
–100.0 |
|||
Other income |
9'252 |
2'656 |
248.3 |
|||
Total operating income |
80'085 |
17'959 |
345.9 |
|||
Personnel expenses |
–61'484 |
–52'257 |
17.7 |
|||
General and administrative expenses |
–81'380 |
–55'286 |
47.2 |
|||
Depreciation and amortisation |
–27'480 |
–33'336 |
–17.6 |
|||
Services (from) / to segments |
83'540 |
87'515 |
–4.5 |
|||
Total operating expenses |
–86'804 |
–53'364 |
62.7 |
|||
Segment profit before tax |
–6'719 |
–35'405 |
–81.0 |
| Download |
|
31.12.2016 |
31.12.2015 |
+/− % |
|||
|---|---|---|---|---|---|---|
Employees (full-time equivalents, in positions) |
417 |
372 |
12.1 |