Institutional Clients Segment

Intermediary and investment fund business, asset management

The Institutional Clients Division encompasses the intermediary and investment fund business, as well as asset management services predominantly in the Liechtenstein and Swiss markets. LLB Asset Management AG fulfils a central role within the LLB Group. It possesses extensive investment competence and takes care of portfolio management, the management of institutional mandates and investment fund management. LLB Fund Services AG is one of the leading investment fund providers in Liechtenstein. It possesses comprehensive, broadly-based expertise. With the LLB Swiss Investment AG, the LLB is present in Switzerland. The LLB teams of experts for the care of fiduciaries, external asset managers, insurances and public institutions are distinguished by their integral, partner-like client focus.

Business segment result

The segment profit before tax of the Institutional Clients segment again increased by over 13 percent. Operating income improved largely on account of the good performance of interest business from foreign currency investments. Income from fees and commissions exceeded the previous year’s result thanks to active sales and marketing efforts, as well as the first-time consolidation of LLB Swiss Investment AG. Operating expenses rose on account of the takeover of the personnel of LLB Swiss Investment AG.

Positive inflows in all business areas led to a gratifying increase in net new money inflows of CHF 446 million. At CHF 27.7 billion, the business volume remained stable.

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Segment reporting

in CHF thousands

 

First half 2018

 

First half 2017

 

+/− %

Net interest income

 

9'156

 

6'896

 

32.8

Credit loss (expense) / recovery

 

637

 

0

 

 

Net interest income after credit loss expense

 

9'793

 

6'896

 

42.0

Net fee and commission income

 

29'384

 

27'589

 

6.5

Net trading income

 

5'673

 

5'367

 

5.7

Other income

 

1

 

0

 

 

Total operating income

 

44'850

 

39'853

 

12.5

Personnel expenses

 

–9'948

 

–8'981

 

10.8

General and administrative expenses

 

–1'561

 

–1'048

 

49.0

Depreciation and amortisation

 

–27

 

0

 

 

Services (from) / to segments

 

–7'047

 

–6'700

 

5.2

Total operating expenses

 

–18'583

 

–16'729

 

11.1

Segment profit before tax

 

26'268

 

23'124

 

13.6

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Performance figures

 

 

First half 2018

 

First half 2017

*

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)

 

446

 

698

Growth of net new money (in percent)

 

1.6

 

2.8

Cost-Income-Ratio (in percent) *

 

42.0

 

42.0

Gross margin (in percent) **

 

32.4

 

30.7

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Additional information

 

 

30.06.2018

 

31.12.2017

 

+/− %

Business volumes (in CHF millions)

 

27'743

 

27'790

 

–0.2

Assets under management (in CHF millions)

 

27'338

 

27'485

 

–0.5

Loans (in CHF millions)

 

405

 

305

 

32.8

Employees (full time equivalent, in positions)

 

102

 

90

 

13.1