Segment reporting by operating segments

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.
  • 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: finance, credit and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication and marketing, 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 organisational 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 are executed at standard market conditions.

(XLS:) Download
Financial year 2016

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institutional Clients

 

Corporate Center

 

Total Group

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

Net interest income

 

84'077

 

15'695

 

10'300

 

27'994

 

138'067

Credit loss (expense) / recovery

 

−3'014

 

750

 

1'275

 

0

 

−989

Net interest income after credit loss (expense) / recovery

 

81'063

 

16'445

 

11'575

 

27'994

 

137'078

Net fee and commission income

 

29'467

 

65'390

 

55'795

 

−4'914

 

145'739

Net trading income

 

10'532

 

8'955

 

10'538

 

25'917

 

55'943

Net income from financial investments at fair value

 

0

 

0

 

0

 

21'836

 

21'836

Share of net income of joint venture

 

0

 

0

 

0

 

0

 

0

Other income

 

1'813

 

2

 

3

 

9'252

 

11'070

Total operating income *

 

122'875

 

90'792

 

77'911

 

80'085

 

371'665

Personnel expenses

 

−31'679

 

−30'631

 

−17'041

 

−61'484

 

−140'835

General and administrative expenses

 

−2'364

 

−3'576

 

−2'538

 

−81'380

 

−89'859

Depreciation and amortisation

 

−68

 

0

 

0

 

−27'480

 

−27'548

Services (from) / to segments

 

−46'989

 

−24'384

 

−12'167

 

83'540

 

0

Total operating expenses

 

−81'100

 

−58'591

 

−31'746

 

−86'804

 

−258'242

Operating profit before tax

 

41'775

 

32'201

 

46'165

 

−6'719

 

113'423

Tax expenses

 

 

 

 

 

 

 

 

 

−9'554

Net profit

 

 

 

 

 

 

 

 

 

103'869

(XLS:) Download
Financial year 2017

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institutional Clients

 

Corporate Center

 

Total Group

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

Net interest income

 

87'439

 

25'992

 

14'725

 

3'960

 

132'115

Credit loss (expense) / recovery

 

833

 

0

 

7'500

 

0

 

8'333

Net interest income after credit loss (expense) / recovery

 

88'271

 

25'992

 

22'225

 

3'960

 

140'447

Net fee and commission income

 

30'210

 

72'825

 

56'201

 

−4'406

 

154'830

Net trading income

 

11'441

 

8'826

 

11'138

 

51'625

 

83'030

Net income from financial investments at fair value

 

0

 

0

 

0

 

16'259

 

16'259

Share of net income of joint venture

 

0

 

0

 

0

 

−14

 

−14

Other income

 

1'622

 

8

 

2

 

3'184

 

4'816

Total operating income *

 

131'545

 

107'651

 

89'566

 

70'607

 

399'369

Personnel expenses

 

−29'886

 

−32'200

 

−17'709

 

−75'604

 

−155'400

General and administrative expenses

 

−3'544

 

−2'650

 

−2'507

 

−74'105

 

−82'806

Depreciation and amortisation

 

−40

 

0

 

0

 

−28'734

 

−28'773

Services (from) / to segments

 

−49'117

 

−27'344

 

−13'369

 

89'831

 

0

Total operating expenses

 

−82'587

 

−62'195

 

−33'585

 

−88'612

 

−266'979

Operating profit before tax

 

48'957

 

45'456

 

55'981

 

−18'005

 

132'389

Tax expenses

 

 

 

 

 

 

 

 

 

−21'131

Net profit

 

 

 

 

 

 

 

 

 

111'259

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group’s revenues.