Corporate Center Segment

Controlling processes and risks

The Corporate Center bundles central functions within the LLB Group and supports the market-oriented divisions in conducting their activities and implementing their strategies. The focus lies on functions in the areas of communication, marketing, human resources, finance, risk and credit management, IT, trading, securities administration and payment services, corporate development, purchasing, as well as legal and compliance services.

The Corporate Center of the LLB Group steers, coordinates and monitors groupwide business activities, processes and risks. It ensures the Group’s corporate development including information technology and enhances the efficiency and quality of the LLB Group’s services.

Business segment result

The LLB Group reports income from financial investments, the structural contribution from interest business and the valuation of interest rate hedging instruments under the Corporate Center. Operating income increased from minus CHF 5.2 million to CHF 12.4 million. This was attributable firstly to higher earnings from interest business, the result of a higher structural contribution, and secondly to a valuation loss on interest rate swaps in trading income from the perspective of the reporting date.

The valuation of financial investments had a positive impact on operating income. The one-time proceeds from the sale of properties was included in other income. Operating expenses rose to CHF 23.4 million. The strategic expansion of personnel in the areas of innovation and compliance / risk management, as well as higher variable salary remuneration because of the share-based compensation model led to an increase in personnel expenses. The segment profit before tax amounted to minus CHF 11.0 million.