Business segment result

The LLB Group reports the structural contribution from interest business, the valuation of interest rate hedging instruments and income from financial investments under the Corporate Center.

Operating income fell from CHF 80.1 million to CHF 70.6 million. On the one hand, higher medium and long-term interest rates had a positive effect on the valuation of interest rate swaps from the perspective of the reporting date. Consequently, trading business posted a substantially better result than in the previous year. On the other hand, the resulting valuations of financial investments were lower. The higher negative interest paid had an adverse impact on interest business. Operating expenses rose on account of higher personnel expenses. In the previous year a one-time reduction in the valuation of pension obligations led to a decrease in expenses. This effect amounting to CHF 10.2 million was no longer present in the year under report. In addition, the strategic expansion of personnel in the areas of innovation and risk management caused an in increase in expenses.