Institutional Clients Segment

Intermediary and investment fund business, asset management

The Institutional Clients Division encompasses the intermediary and investment fund business, as well as asset management services. As a result of the acquisitions made in 2018, the LLB Group now unites four investment fund management companies under one corporate roof. In its three home markets of Liechtenstein, Austria and Switzerland, it operates as a dynamic, versatile fund powerhouse. The focus lies on providing private label fund solutions. The LLB teams of experts for the care of fiduciaries, external asset managers, insurance companies and public institutions are distinguished by their holistic, partner-like client orientation. LLB Asset Management AG fulfils a central role within the LLB Group. Its award-winning, outstanding investment competence is one of the Group’s great strengths. At the Refinitiv Lipper Group Awards in April 2019, LLB was named European champion in the “Overall Small Company” category.

Business segment result

The segment profit before tax of the Institutional Clients segment rose by 35.6 percent to CHF 35.6 million. Operating income improved largely on account of the good performance of interest business from foreign currency investments. Thanks to active sales and marketing efforts, as well as the consolidation of LB(Swiss) Investment AG and Semper Constantia Privatbank AG, fees and commissions exceeded the previous year’s result. Operating expenses increased in comparison with the equivalent period in the previous year due to the additional personnel in the companies taken over. Positive inflows in all business areas led to a gratifying increase in net new money inflows of CHF 1.7 billion. The business volume expanded by 10 percent to CHF 47.5 billion.

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Segment reporting

in CHF thousands

 

First half 2019

 

First half 2018

 

+/– %

Net interest income

 

10'949

 

9'156

 

19.6

Expected credit losses

 

0

 

637

 

–100.0

Net interest income after expected credit losses

 

10'949

 

9'793

 

11.8

Net fee and commission income

 

50'869

 

29'384

 

73.1

Net trading income

 

4'989

 

5'673

 

–12.0

Other income

 

–5

 

1

 

 

Total operating income

 

66'803

 

44'850

 

48.9

Personnel expenses

 

–16'069

 

–9'948

 

61.5

General and administrative expenses

 

209

 

–1'561

 

 

Depreciation and amortisation

 

–185

 

–27

 

586.3

Services (from) / to segments

 

–15'145

 

–7'047

 

114.9

Total operating expenses

 

–31'190

 

–18'583

 

67.8

Segment profit before tax

 

35'613

 

26'268

 

35.6

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Performance figures

 

 

First half 2019

 

First half 2018

*

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) *

 

29.1

 

32.4

Cost-Income-Ratio (in per cent) **

 

50.8

 

42.0

Net new money (in CHF millions)

 

1'727

 

446

Growth of net new money (in per cent)

 

4.1

 

1.6

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Additional information

 

 

30.06.2019

 

31.12.2018

 

+/− %

Business volume (in CHF millions)

 

47'482

 

43'007

 

10.4

Assets under management (in CHF millions)

 

46'945

 

42'489

 

10.5

Loans (in CHF millions)

 

538

 

518

 

3.8

Employees (full-time equivalents, in positions)

 

174

 

171

 

1.8