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 the structural contribution from interest business, the valuation of interest rate hedging instruments and income from financial investments under the Corporate Center.

Operating income decreased by CHF 25.1 million to CHF 11.9 million. The fall was attributable to accounting losses incurred with financial investments measured at fair value on the reporting date. These amounted to minus CHF 10.4 million in comparison with a gain of CHF 5.2 million in the first half of 2017. The valuation of interest rate hedging instruments measured on the reporting date totalled CHF 5.5 million in the first half of 2018 (first half 2017: CHF 11.5 million). The development of CHF interest rates was responsible for the decline. These rose more strongly in the first half of 2017 than in the first half of 2018. Operating expenses increased on account of the strategic expansion of personnel in the areas of innovation and risk management.