Private Banking Segment
Private Banking
The Private Banking Division of the LLB Group combines advisory quality and investment competence with modern technology. The focus lies on the onshore markets in Liechtenstein, Switzerland and Austria, our traditional, cross-border markets in Germany and Western Europe, as well as the growth markets in Central and Eastern Europe and the Middle East. In addition, the Private Banking Division is responsible for groupwide product management.
The Private Banking Division offers international clients investment advice, wealth management, asset structuring, financing facilities, as well as financial and retirement planning. The LLB Group has three banks in Liechtenstein (Vaduz), Switzerland (Uznach) and Austria (Vienna) as well as banking locations in Zurich-Erlenbach, Geneva, Abu Dhabi, Dubai and in Eastern Switzerland.
Business segment result
The Private Banking Business Segment reported new money inflows in the growth markets and in the domestic markets in the first half of 2016. Money outflows were registered in the traditional, cross-border markets. On balance, this resulted in a net money outflow of 0.1 percent. Due to performance-related factors, assets under management decreased to CHF 12.7 billion, while loans to clients rose to CHF 1.4 billion. The business volume stood at CHF 14.1 billion.
On account of the high level of liquidity held by clients and the persisting pressure on margins, income from interest business and income from fees and commissions declined. Operating income fell accordingly by 10.4 percent to CHF 43.8 million. The expansion of personnel through the recruitment of new client advisers led to higher personnel expenses. Operating expenses climbed to CHF 30.1 million. The segment result before tax decreased to CHF 13.8 million.
| Download |
in CHF thousands |
First half 2016 |
First half 2015 |
+/− % |
Net interest income |
7'327 |
9'310 |
−21.3 |
Credit loss (expense) / recovery |
750 |
0 |
|
Net interest income after credit loss expense |
8'077 |
9'310 |
−13.2 |
Net fee and commission income |
31'577 |
34'770 |
−9.2 |
Net trading income |
4'183 |
4'869 |
−14.1 |
Other income |
1 |
2 |
−50.0 |
Total operating income |
43'838 |
48'951 |
−10.4 |
Personnel expenses |
−14'647 |
−12'294 |
19.1 |
General and administrative expenses |
−1'888 |
−1'695 |
11.4 |
Depreciation and amortisation |
0 |
0 |
|
Services (from) / to segments |
−13'519 |
−12'985 |
4.1 |
Total operating expenses |
−30'054 |
−26'974 |
11.4 |
Segment profit before tax |
13'784 |
21'977 |
−37.3 |
| Download |
|
First half 2016 |
First half 2015 |
||||
|
||||||
Net new money (in CHF millions) |
−16 |
52 |
||||
Growth of net new money (in percent) |
−0.1 |
0.3 |
||||
Cost-Income-Ratio (in percent) * |
68.5 |
55.9 |
||||
Gross margin (in percent) ** |
61.9 |
67.1 |
||||
| Download |
|
30.06.2016 |
31.12.2015 |
+/– % |
Business volumes (in CHF millions) |
14'144 |
14'448 |
−2.1 |
Assets under management (in CHF millions) |
12'744 |
13'128 |
−2.9 |
Loans (in CHF millions) |
1'400 |
1'320 |
6.1 |
Employees (full time equivalent, in positions) |
148 |
137 |
8.0 |