Retail & Corporate Banking Segment

Private and corporate clients

The Retail & Corporate Banking Division of the LLB Group offers the entire spectrum of banking and financial services for private and corporate clients in Liechtenstein and Switzerland at all phases of life and the business cycle. Traditionally, savings and mortgage lending business has always played a very important role. This is supplemented by financial planning and corporate pensioning provisioning. In addition, the LLB Group provides specific investment advice and asset management to clients having available assets of up to CHF 0.5 million. At the same time, it offers services for small and medium-sized enterprises (SMEs). Retail & Corporate Banking combines bank branches with mobile and web-based services. It has three branches in Liechtenstein and 19 in the Swiss cantons of Zurich, St. Gallen, Thurgaus and Schwyz.

Business segment result

Interest differential business, which comprises the largest part of earnings in private and corporate client business, recorded a positive development. 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 investments in the branch and distribution network, operating expenses remained stable.

The business volume rose by 1.1 percent to CHF 19.0 billion. Loans to customers in line with LLB’s risk conscious policy expanded by 1.4 percent. 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

 

First half 2018

 

First half 2017

 

+/− %

Net interest income

 

44'841

 

42'741

 

4.9

Credit loss (expense) / recovery

 

2'665

 

–3'104

 

 

Net interest income after credit loss expense

 

47'505

 

39'638

 

19.8

Net fee and commission income

 

15'737

 

15'482

 

1.6

Net trading income

 

5'541

 

5'454

 

1.6

Other income

 

711

 

536

 

32.6

Total operating income

 

69'495

 

61'110

 

13.7

Personnel expenses

 

–15'183

 

–15'214

 

–0.2

General and administrative expenses

 

1'957

 

–981

 

 

Depreciation and amortisation

 

0

 

–34

 

–100.0

Services (from) / to segments

 

–24'678

 

–24'952

 

–1.1

Total operating expenses

 

–37'904

 

–41'180

 

–8.0

Segment profit before tax

 

31'590

 

19'930

 

58.5

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Performance figures

 

 

First half 2018

 

First half 2017

*

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)

 

200

 

–97

Growth of net new money (in percent)

 

2.4

 

–1.1

Cost-Income-Ratio (in percent) *

 

56.7

 

64.1

Gross margin (in percent) **

 

70.7

 

70.4

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Additional information

 

 

30.06.2018

 

31.12.2017

 

+/− %

Business volumes (in CHF millions)

 

18'969

 

18'763

 

1.1

Assets under management (in CHF millions)

 

8'514

 

8'449

 

0.8

Loans (in CHF millions)

 

10'455

 

10'314

 

1.4

Employees (full time equivalent, in positions)

 

193

 

193

 

0.2