Corporate Center

Controlling processes and risks

The Corporate Center encompasses the Group COO, Group CFO and Group CEO Divisions. It supports our market-oriented Retail & Corporate Banking, Private Banking and Institutional Clients Divisions in conducting their activities and implementing their strategies. The Corporate Center encompasses the functions: communication, marketing, human resources, finances, risk and credit management, IT, trading, securities administration and payment services, corporate development and procurement management, as well as legal and compliance services. The results of the LLBs own financial investments, the structural contribution from client interest differential business, income from money market transactions and from interest rate hedge accounting are booked to the Corporate Center.

In the Group Executive Board Group CEO Roland Matt, Group CFO Christoph Reich and Group COO Kurt Mäder held responsibility for this business segment in the first half of 2013.

Business segment result

Interest income after credit loss expense fell by 60.4 percent to CHF 14.8 million (30 June 2012: CHF 37.3 million), fee and commission income at minus CHF 1.1 million was the same as in the previous year, namely minus CHF 1.0 million. Trading income stood at CHF 29.8 million (30 June 2012: 0.8 million), representing a gain of CHF 29.0 million. This was because the income from interest rate swaps improved from minus CHF 9.1 million per 30 June 2012 to plus CHF 28.2 million per 30 June 2013.

The development of the LLB Groups own financial investments – recognised at fair value – generated income of CHF 4.1 million (30 June 2012: CHF 22.1 million), corresponding to a decline of 81.5 percent compared with the previous period.

Operating income decreased by 22.9 percent to CHF 49.5 million (30 June 2012: CHF 64.2 million). Operating expenses increased by 15.0 percent to CHF 28.0 million (30 June 2012: CHF 24.4 million). The increase was caused above all by the extraordinary write-downs of CHF 9.6 million for LLB (Switzerland) Ltd. business real estate in connection with the closure of LLB (Switzerland) Ltd. In addition, personnel expenses in the previous year were positively influenced by the one-off effect of the change over to a defined contribution pension plan by the Personnel Pension Fund Foundation.

Overall, the segment profit before tax stood at CHF 21.4 million compared with the 46.2 percent higher segment profit of CHF 39.8 million posted in the previous year.

Segment reporting

 

(XLS:)

 

 

 

 

in CHF thousands

First half
2013

First half
2012*

+/– %

*

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

Net interest income

14'780

37'392

–60.5

Credit loss (expense) / recovery

0

–83

 

Net interest income after credit loss expense

14'780

37'309

–60.4

Net fee and commission income

–1'049

–1'015

3.3

Net trading income

29'782

783

 

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

4'089

22'050

–81.5

Share of net income of associates

8

4

100.0

Other income

1'854

5'061

–63.4

Total operating income

49'464

64'192

–22.9

Personnel expenses

–40'543

–34'061

19.0

General and administrative expenses

–27'353

–33'659

–18.7

Depreciation and amortisation

–25'559

–13'551

88.6

Services from / to segments

65'419

56'890

15.0

Total operating expenses

–28'036

–24'381

15.0

Segment profit before tax

21'428

39'811

–46.2

 

 

 

 

Additional information

30.06.2013

31.12.2012

+/– %

Employees (full time equivalents, in positions)

417

440

–5.1

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