Business segment result

Retail & Corporate Banking

2'329'553

Transactions were made by the almost 36’000 LLB mobile and online banking clients in 2018. That is almost 40 per cent more than five years ago.

Interest differential business, which comprises the largest part of earnings in private and corporate banking, developed positively. The pressure on margins in deposits and mortgage business was more than compensated for by growth in lending business. In the reporting period value allowances for credit loss expense were released. In spite of the investments made in the branch and distribution network, operating expenses remained stable. The business volume rose by 2 per cent to CHF 19.1 billion. Loans to customers in line with LLB’s risk conscious policy expanded by 3.7 per cent. The segment posted new money inflows from private and corporate clients in the home markets of Switzerland and Liechtenstein.

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Segment reporting

in CHF thousands

  

2018

  

2017

  

+/− %

Net interest income

  

90'317

  

87'439

  

3.3

Expected credit losses

  

6'931

  

833

  

732.0

Net interest income after expected credit losses

  

97'248

  

88'271

  

10.2

Net fee and commission income

  

29'729

  

30'210

  

–1.6

Net trading income

  

11'383

  

11'441

  

–0.5

Other income

  

1'783

  

1'622

  

9.9

Total operating income

  

140'143

  

131'545

  

6.5

Personnel expenses

  

–30'458

  

–29'886

  

1.9

General and administrative expenses

  

–1'607

  

–3'544

  

–54.6

Depreciation and amortisation

  

0

  

–40

  

–100.0

Services (from) / to segments

  

–50'127

  

–49'117

  

2.1

Total operating expenses

  

–82'192

  

–82'587

  

–0.5

Segment profit before tax

  

57'951

  

48'957

  

18.4
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Performance figures

 

  

2018

  

2017

*

Operating income (excluding expected credit losses) relative to average monthly business volumes.

**

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

Gross margin (in basis points) *

  

70.0

  

70.8

Cost-Income-Ratio (in per cent) **

  

61.7

  

63.2

Net new money (in CHF millions)

  

407

  

–100

Growth of net new money (in per cent)

  

4.8

  

–1.2
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Additional information

 

  

31.12.2018

  

31.12.2017

  

+/− %

Business volume (in CHF millions)

  

19'142

  

18'763

  

2.0

Assets under management (in CHF millions)

  

8'449

  

8'449

  

0.0

Loans (in CHF millions)

  

10'693

  

10'314

  

3.7

Employees (full-time equivalents, in positions)

  

197

  

193

  

2.1