Segment reporting by operating segments

The business activities of the LLB Group are divided into the following three business areas. These form the basis for the segment reporting.

  • Retail & Corporate Banking segment encompasses the universal banking business in the home markets of Liechtenstein and Switzerland.
  • Private Banking segment encompasses all the private banking activities of the LLB Group.
  • Institutional Clients segment encompasses the financial intermediary and investment fund business as well as the asset management and wealth structuring activities of the LLB Group

The segments receive comprehensive support from the Corporate Center. It comprises the following functions: finance, credit and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication and branding, corporate development, as well as logistics and IT services.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Management (chief operating decision maker), which is responsible for allocating resources to the reportable segments and assessing their performance. All operating segments used by the LLB Group meet the definition of a reportable segment under IFRS 8.

In accordance with the principle of responsibility and based on the organisational structure, income and expenditure are allocated to the business divisions. Indirect costs, resulting from services provided internally, are accounted for according to the principle of causation and are recorded as a revenue increase for the service provider and as a cost increase for the service beneficiary. The remaining income and expenditure for overriding services which cannot be assigned to the segments are shown under Corporate Center. Furthermore, consolidation adjustments are reported under Corporate Center.

Transactions between the segments are executed at standard market conditions.

(XLS:) Download
Business year 2015

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institu­tional Clients

 

Corporate Center

 

Total Group

Net interest income

 

89'246

 

16'590

 

8'147

 

18'471

 

132'454

Credit loss (expense) / recovery

 

–57

 

0

 

–5'979

 

0

 

–6'036

Net interest income after credit loss expense

 

89'189

 

16'590

 

2'168

 

18'471

 

126'418

Net fee and commission income

 

28'124

 

66'766

 

56'907

 

–2'173

 

149'625

Net trading income

 

11'157

 

10'277

 

11'896

 

–246

 

33'084

Net income from financial investments at fair value

 

0

 

0

 

0

 

–736

 

–736

Share of net income of joint venture

 

0

 

0

 

0

 

–13

 

–13

Other income

 

543

 

2

 

1'584

 

2'656

 

4'785

Total operating income *

 

129'013

 

93'635

 

72'555

 

17'959

 

313'163

Personnel expenses

 

–31'741

 

–24'209

 

–15'575

 

–52'257

 

–123'782

General and administrative expenses

 

–2'607

 

–2'776

 

–2'985

 

–55'286

 

–63'653

Depreciation and amortisation

 

–321

 

0

 

0

 

–33'336

 

–33'657

Services (from) / to segments

 

–51'790

 

–25'592

 

–10'133

 

87'515

 

0

Total operating expenses

 

–86'459

 

–52'577

 

–28'693

 

–53'364

 

–221'093

Operating profit before tax

 

42'554

 

41'058

 

43'862

 

–35'405

 

92'070

Tax expenses

 

 

 

 

 

 

 

 

 

–5'770

Net profit

 

 

 

 

 

 

 

 

 

86'301

(XLS:) Download
Business year 2016

in CHF thousands

 

Retail & Corporate Banking

 

Private Banking

 

Institu­tional Clients

 

Corporate Center

 

Total Group

*

There were no substantial earnings generated between the segments so that income between the segments is not material.

Net interest income

 

84'077

 

15'695

 

10'300

 

27'994

 

138'067

Credit loss (expense) / recovery

 

–3'014

 

750

 

1'275

 

0

 

–989

Net interest income after credit loss expense

 

81'063

 

16'445

 

11'575

 

27'994

 

137'078

Net fee and commission income

 

29'467

 

65'390

 

55'795

 

–4'914

 

145'739

Net trading income

 

10'532

 

8'955

 

10'538

 

25'917

 

55'943

Net income from financial investments at fair value

 

0

 

0

 

0

 

21'836

 

21'836

Share of net income of joint venture

 

0

 

0

 

0

 

0

 

0

Other income

 

1'813

 

2

 

3

 

9'252

 

11'070

Total operating income *

 

122'875

 

90'792

 

77'911

 

80'085

 

371'665

Personnel expenses

 

–31'679

 

–30'631

 

–17'041

 

–61'484

 

–140'835

General and administrative expenses

 

–2'364

 

–3'576

 

–2'538

 

–81'380

 

–89'859

Depreciation and amortisation

 

–68

 

0

 

0

 

–27'480

 

–27'548

Services (from) / to segments

 

–46'989

 

–24'384

 

–12'167

 

83'540

 

0

Total operating expenses

 

–81'100

 

–58'591

 

–31'746

 

–86'804

 

–258'242

Operating profit before tax

 

41'775

 

32'201

 

46'165

 

–6'719

 

113'423

Tax expenses

 

 

 

 

 

 

 

 

 

–9'554

Net profit

 

 

 

 

 

 

 

 

 

103'869

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group’s revenues.