Focus topic 2018: Growth
The core element of growth was at the heart of our business activities in 2018. With Semper Constantia Privatbank AG and LB(Swiss) Investment AG, the LLB Group has made two acquisitions that are in line with its strategy and were completed on schedule. Through them it has opened up new growth potential in its home markets.
Two acquisitions successfully completed in one year
LLB becomes leading asset management bank
Through the merger of Semper Constantia and Liechtensteinische Landesbank (Österreich) AG, the LLB subsidiary in Vienna has become Austria’s leading asset management bank. We were thus able to establish Austria as our third strong home market and grow in line with our strategy. With its strong position in private banking and the institutional business and its excellent reputation, Semper Constantia Privatbank AG represents an ideal addition to our activities in Austria.
We announced the takeover in December 2017. Closing took place as scheduled in July and completion of the merger was communicated at the end of September 2018 (see timeline above). With the merger, the business volume of Liechtensteinische Landesbank (Österreich) AG grew to over EUR 21 billion. The independent banking institute, licensed in Austria, and its subsidiaries employ over 220 people (full-time equivalent positions). In addition to the home market of Austria, the merged bank is active in Central and Eastern Europe as well as in Italy and Germany. Its business model is broadly diversified with LLB Österreich offering a comprehensive range of products and services in asset management, custodian bank services, the investment fund business and real estate. As a wholly-owned subsidiary of LLB in Vaduz, LLB Österreich benefits additionally from the stability and financial strength of the parent company.
Entry into the Swiss fund market
With the acquisition, announced in February 2018, of the Swiss fund management company LB(Swiss) Investment AG, which has been operating under the name LLB Swiss Investment AG since May, the LLB Group has successfully managed to enter the attractive Swiss fund market. LLB Swiss Investment AG offers its clients tailored and efficient services in the areas of fund administration, compliance and risk management, thus ideally rounding off the LLB Group’s profile in the Swiss market. As a Swiss fund management company focusing on private label business and as a medium-sized company, LLB Swiss Investment AG is an ideal complement to drive growth in the fund business. At the end of 2018, it had CHF 30.5 billion in fund assets under management, with 612 funds being managed by 85 employees.
Emergence of a fund powerhouse
Thanks to the two acquisitions, the LLB Group will be a fund powerhouse in the FL-A-CH region, that is in its three home markets of Liechtenstein, Switzerland and Austria (see chapter “Institutional Clients”).
Fund Services of the LLB Group
Financial strength to make further acquisitions
Notwithstanding the acquisitions made, the LLB Group still has some CHF 400 million available for further acquisitions. It will continue in future to explore acquisition opportunities that offer a strategic fit. It will focus its efforts on the market regions of Liechtenstein, Switzerland and Austria.