Corporate Center Segment

Controlling processes and risks

The Corporate Center bundles central functions within the LLB Group and supports the market-oriented divisions in conducting their activities and implementing their strategies. The focus lies on functions in the areas of communication, marketing, human resources, finance, risk and credit management, IT, trading, securities administration and payment services, corporate development, purchasing, as well as legal and compliance services.

The Corporate Center of the LLB Group steers, coordinates and monitors groupwide business activities, processes and risks. It ensures the Group’s corporate development and digital transformation and enhances the efficiency and quality of the LLB Group’s services.

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 rose by CHF 24.6 million to CHF 37.0 million. Higher 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. However, higher negative interest rates had an adverse effect on interest business.

Operating expenses climbed by CHF 3.9 million due to 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 was no longer present in the year under report, accordingly personnel expenses rose by CHF 10.2 million. In addition, the strategic expansion of personnel in the areas of innovation and risk management caused an increase in expenses.