Segment reporting

The business activities of the LLB Group are divided into the following three business areas. These form the basis for the segment reporting.

• Retail & Corporate Banking Segment encompasses the universal banking business in the home markets of Liechtenstein and Switzerland.
• Private Banking Segment encompasses all the private banking activities of the LLB Group, and groupwide product management.
• Institutional Clients Segment encompasses the financial intermediary and investment fund business as well as the asset management and wealth structuring activities of the LLB Group.

The segments receive comprehensive support from the Corporate Center. It comprises the following functions: financial and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication and branding, corporate development, as well as logistics and IT services.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Management (chief operating decision maker), which is responsible for allocating resources to the reportable segments and assessing their performance. All operating segments used by the LLB Group meet the definition of a reportable segment under IFRS 8.

In accordance with the principle of responsibility and based on the organizational structure, income and expenditure are allocated to the business divisions. Indirect costs, resulting from services provided internally, are accounted for according to the principle of causation and are recorded as a revenue increase for the service provider and as a cost increase for the service beneficiary. The remaining income and expenditure for overriding services, which cannot be assigned to the segments, are shown under Corporate Center. Furthermore, consolidation adjustments are reported under Corporate Center.

Transactions between the segments were executed at standard market conditions.

Since the second half of 2015, the LLB Group has carried out the settlement of services from / to other segments on the basis of a new internal accounting key. This provides a more efficient allocation of costs to the individual segments. The previous year’s figures have been restated accordingly.