Institutional Clients Segment

Intermediary and investment fund business, asset management

The Institutional Clients Division encompasses the intermediary and fund business, as well as asset management services in the Liechtenstein and Swiss markets. LLB Asset Management AG fulfils a central role within the LLB Group. It possesses extensive investment competence and takes care of portfolio management, the management of institutional mandates and investment fund management.

LLB Fund Services AG is one of the leading investment fund providers in Liechtenstein. It possesses comprehensive, broadly-based expertise. The LLB teams of experts for the care of fiduciaries, external asset managers and public institutions are distinguished by their holistic, partner-like client focus.

Business segment result

The Institutional Clients Segment manages around 40 percent, or CHF 24.6 billion, of the business volume of the LLB Group. As a result of large outflows of money from isolated custodian bank funds and in traditional, cross-border business, net new money amounted to minus CHF 277 million.

In a challenging market environment, operating income increased by 5.4 percent to CHF 37.7 million. Whereas value adjustments decreased, income from interest business and fees and commissions remained stable. Operating expenses rose by 11.1 percent to CHF 15.5 million. The segment profit before tax climbed by 1.8 percent to CHF 22.2 million.

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Segment reporting

in CHF thousands

First half 2016

First half 2015

+/− %

Net interest income

4'568

4'512

1.2

Credit loss (expense) / recovery

−25

−4'730

−99.5

Net interest income after credit loss expense

4'543

−218

 

Net fee and commission income

28'046

28'565

−1.8

Net trading income

5'062

5'784

−12.5

Other income

2

1'584

−99.9

Total operating income

37'653

35'715

5.4

Personnel expenses

−8'727

−8'033

8.6

General and administrative expenses

−1'054

−1'050

0.4

Depreciation and amortisation

0

0

 

Services (from) / to segments

−5'683

−4'830

17.7

Total operating expenses

−15'464

−13'913

11.1

Segment profit before tax

22'189

21'802

1.8

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Performance figures

 

First half 2016

First half 2015

*

Operating expenses (excluding provisions for legal and litigation risks) in relation to operating income (excluding credit loss expense).

**

Operating income (excluding credit loss expense) relative to average monthly business volumes.

Net new money (in CHF millions)

−277

−211

Growth of net new money (in percent)

−1.1

−0.8

Cost-Income-Ratio (in percent) *

41.0

34.4

Gross margin (in percent) **

30.5

32.3

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Additional information

 

30.06.2016

31.12.2015

+/– %

Business volumes (in CHF millions)

24'622

24'854

−0.9

Assets under management (in CHF millions)

24'286

24'394

−0.4

Loans (in CHF millions)

336

460

−27.0

Employees (full time equivalent, in positions)

87

84

3.6