StepUp2020 strategy

With the StepUp2020 strategy, we signalled in 2016 a phase of sustainable, profitable growth. Prior to that, the LLB Group had successfully repositioned itself with the Focus2015 strategy. The StepUp2020 strategy extends over five years (2016 to 2020).

Strategic success factors

The LLB Group’s success is based on a number of factors, the most important being:

• a clear strategy with high-quality implementation
• a client-oriented business model
• a strong competitive position
• innovative, client-oriented products and services
• security and stability
• a stable management structure
• highly effective employees
• efficient processes
• interplay of digitalisation and personal contact
• a unique corporate culture

The four core elements

Always with an eye to the clients, we will concentrate on our strengths. Up to 2020, we will focus on four core elements:

• Growth: We want to achieve this in two ways. Firstly, we want to grow organically by building on our own strengths. To this end, we will increase resources available for client advisory services. Secondly, we will target acquisitions in our home markets of Liechtenstein, Switzerland and Austria.
• Profitability: We intend to increase our margins by offering outstanding products and services. Efficient market penetration will help to generate profitable income. Maintaining strict cost management will be key.
• Innovation: We will invest in the future in a targeted manner. On the one hand, we will develop pioneering digital solutions and, on the other, we will provide our clients with an optimised and personalised service. We will automate standard business and individualise trust-based business. The planned investment volume amounts to more than CHF 100 million, of which CHF 30 million is earmarked for digital solutions for our clients.
• Excellence: We will continually improve processes throughout the organisation using lean management principles. Our aim is to increase the benefit to clients and boost added value. Given increasing regulation, we will strive to maintain strict compliance standards.

Our structure and focus markets as well as the initiatives under our StepUp2020 strategy are summarised in the table.

Growth and financial targets

Under the StepUp2020 strategy, the LLB Group set itself four clear and measurable targets. These are: a business volume of more than CHF 70 billion, a Tier 1 ratio of over 14 per cent, a Cost-Income-Ratio of under 65 per cent and a cumulative Group net profit of more than CHF 500 million. While we have already exceeded the targets for business volume and the Tier 1 ratio, we are on track to achieve the target for cumulative Group net profit. There is still room to improve the Cost-Income-Ratio and therefore our focus in the last year of the strategy period will be on the core element of profitability. We will be concentrating on maintaining cost discipline and achieving income targets.

1. Business volume

2. Cost-Income-Ratio

3. Tier 1 ratio

4. Cumulative Group net profit