A good equity base not only protects its reputation, but is also part of the financial management and credibility of a bank. Having a sufficiently high-quality equity base at its disposal is part of the LLB Group’s identity. The LLB Group’s financial strength shall remain, as far as possible, unaffected by fluctuations in the capital markets.
We simulate external influences and analyse how these affect our capital base using scenario analyses and stress tests and, where necessary, we take measures to minimise risks.
Solid equity base
The LLB Group continues to enjoy a high level of financial stability and security on account of its solid equity base, which consists entirely of hard core capital. As at the end of 2016, the LLB Group had CHF 1.8 billion in equity capital (31.12.2015: CHF 1.8 billion). The Tier 1 ratio stood at 21.0 percent (31.12.2015: 20.6 %). Under the StepUp2020 strategy, we are targeting a Tier 1 ratio of over 14 percent. This gives the LLB Group room to manoeuvre to make acquisitions (see chapter “Strategy and organisation”). LLB is considered to be of systemic importance to the Liechtenstein economy. At 21.0 percent, our Tier 1 ratio is well above the regulatory minimum capital adequacy ratio for systemically important banks in Liechtenstein of 13 percent.