Segment reporting

The business activities of the LLB Group are divided into the following three market divisions. 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 support from the Corporate Center. It comprises the following functions: financial 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, market divisions 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 assesses 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 organizational structure, income and expenditure are allocated to the market 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.

The information provided about each segment is based on internal reports concerning segment accounting, assets and other information, which are regularly reviewed by the Group Executive Board. Transactions between the segments were executed at standard market conditions.

The segment reporting for the half year ending on 30.06.2013 is made up as follows:

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Cor-
porate
Center

Total
Group

Net interest income

42'883

9'655

6'026

14'780

73'344

Credit loss (expense) / recovery

–1'117

–4'200

700

0

–4'617

Net interest income after credit loss expense

41'766

5'455

6'726

14'780

68'727

Net fee and commission income

12'707

43'579

51'482

–1'049

106'719

Net trading income

3'532

4'687

4'760

29'782

42'761

Net income from financial investments at fair value through profit and loss

0

0

0

4'089

4'089

Share of net income of associates

0

0

0

8

8

Other income

0

0

55'750

1'854

57'604

Total operating income

58'005

53'721

118'718

49'464

279'908

Personnel expenses

–15'829

–13'370

–20'376

–40'543

–90'118

General and administrative expenses

–964

–11'416

–97'823

–27'353

–137'556

Depreciation and amortisation

–55

–12

–7'882

–25'559

–33'508

Services (from) / to segments

–21'570

–21'132

–22'717

65'419

0

Total operating expenses

–38'418

–45'930

–148'798

–28'036

–261'182

Segment profit before tax

19'587

7'791

–30'080

21'428

18'726

Income tax expenses

 

 

 

 

–5'136

Net profit

 

 

 

 

13'590

The segment reporting for the half year ending on 30.06.2012 is made up as follows*:

(XLS:)

in CHF thousands

Retail &
Corporate Banking

Private
Banking

Institu-
tional Clients

Cor-
porate
Center

Total
Group

*

The comparison period was adjusted with the regard to the adaption of IAS 19 (revised).

Net interest income

44'746

10'074

6'288

37'392

98'500

Credit loss (expense) / recovery

–423

–24'093

–2'161

–83

–26'760

Net interest income after credit loss expense

44'323

–14'019

4'127

37'309

71'740

Net fee and commission income

12'281

42'117

49'755

–1'015

103'138

Net trading income

1'172

1'555

1'580

783

5'090

Net income from financial investments at fair value through profit and loss

0

0

0

22'050

22'050

Share of net income of associates

0

0

0

4

4

Other income

0

0

0

5'061

5'061

Total operating income

57'776

29'653

55'462

64'192

207'083

Personnel expenses

–13'298

–11'232

–17'118

–34'061

–75'709

General and administrative expenses

–1'187

–2'235

–7'537

–33'659

–44'618

Depreciation and amortisation

–29

–6

–4'179

–13'551

–17'765

Services (from) / to segments

–18'758

–18'377

–19'755

56'890

0

Total operating expenses

–33'272

–31'850

–48'589

–24'381

–138'092

Segment profit before tax

24'504

–2'197

6'873

39'811

68'991

Income tax expenses

 

 

 

 

–8'120

Net profit

 

 

 

 

60'871

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