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 life cycle. Traditionally, savings and mortgage lending business has always played an important role. This is supplemented by financial planning and corporate pension provisioning.

Furthermore, the Retail & Corporate Banking Division provides 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 business branches in Liechtenstein and 19 in the Swiss cantons of Zurich, St. Gallen, Schwyz and Glarus.

Business segment result

During the first half of 2016, the business volume in the Retail & Corporate Banking Business Segment rose by 1.7 percent to CHF 17.7 billion. Thanks to the continuing demand for real estate financing, loans to customers climbed by 1.0 percent. Assets under management increased by 2.5 percent to CHF 8.2 billion. Net new money stood at CHF 256 million. Inflows were registered from private and corporate clients in the two domestic markets of Switzerland and Liechtenstein.

On account of the low interest rate level, operating income fell by 9.1 percent to CHF 61.2 million. Operating expenses fell at the same time by 13.5 percent to CHF 39.6 million. The segment profit before tax remained constant at CHF 21.6 million.

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Segment reporting

in CHF thousands

First half 2016

First half 2015

+/− %

Net interest income

41'418

46'354

−10.6

Credit loss (expense) / recovery

−865

461

 

Net interest income after credit loss expense

40'553

46'815

−13.4

Net fee and commission income

15'462

14'669

5.4

Net trading income

4'929

5'480

−10.1

Other income

225

340

−33.8

Total operating income

61'169

67'304

−9.1

Personnel expenses

−16'269

−16'194

0.5

General and administrative expenses

−851

−1'519

−44.0

Depreciation and amortisation

−35

−50

−30.0

Services (from) / to segments

−22'401

−27'986

−20.0

Total operating expenses

−39'556

−45'749

−13.5

Segment profit before tax

21'613

21'555

0.3

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Performance figures

 

First half 2016

First half 2015

*

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)

256

−7

Growth of net new money (in percent)

3.2

−0.1

Cost-Income-Ratio (in percent) *

63.8

68.4

Gross margin (in percent) **

70.7

78.1

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Additional information

 

30.06.2016

31.12.2015

+/– %

Business volumes (in CHF millions)

17'670

17'374

1.7

Assets under management (in CHF millions)

8'241

8'037

2.5

Loans (in CHF millions)

9'429

9'337

1.0

Employees (full time equivalent, in positions)

215

223

−3.6