Institutional Clients

Intermediary and investment fund business, asset management

The Institutional Clients Market Division encompasses the intermediary and fund business, as well as the asset management and fund services operations of the LLB Group. We concentrate on professional investors and financial intermediaries. We can call on the expert knowledge available within the LLB Group when delivering our comprehensive services. We are one of the three largest providers of fund services in Liechtenstein and supply discerning institutional clients with efficient solutions from one source. From the concept to the realisation of traditional and alternative investment funds, we support fund managers throughout the entire process. As a custodian bank, we also play an important role. Our focus lies on the markets of Liechtenstein and Switzerland.

In the LLB Group Executive Board, Urs Müller was responsible for this business segment during the first half of 2013.

Business segment result

The Institutional Clients Business Segment attained a net new money inflow of CHF 76 million in the first half of 2013. As per 30 June 2013, client assets under management stood at CHF 25.9 billion, corresponding to a gain of 4.2 percent in comparison with 31 December 2012 (CHF 24.9 billion).

Interest income after credit loss expense rose by 63.0 percent to CHF 6.7 million (30 June 2012: CHF 4.1 million). Fee and commission income increased by 3.5 percent to CHF 51.5 million (30 June 2012: CHF 49.8 million). Trading income climbed by CHF 3.2 million to CHF 4.8 million (30 June 2012: CHF 1.6 million). Book value changes to purchase price obligations from acquisitions resulted in other income of CHF 55.8 million, which represented a major contribution to operating income of CHF 118.7 million (30 June 2012: CHF 55.5 million).

Operating expenses expanded by 206.2 percent to CHF 148.8 million (30 June 2012: CHF 48.6 million), whereby one-off effects (provisions for US risks and a goodwill impairment) weighed heavily on general and administrative expenses. The Cost-Income-Ratio stood at 91.7 percent (30 June 2012: 71.5 %).

The segment profit before tax fell to minus CHF 30.1 million (30 June 2012: CHF 6.9 million).

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).

**

Operating expenses (excluding provisions for legal and litigation risks, allowances for non-current assets held for sale and impairment for goodwill) in relation to operating income (excluding credit loss expense and adjustments on purchase price obligations from acquisitions).

***

Operating income excluding credit loss expense relative to average business volumes.

Net interest income

6'026

6'288

–4.2

Credit loss (expense) / recovery

700

–2'161

 

Net interest income after credit loss expense

6'726

4'127

63.0

Net fee and commission income

51'482

49'755

3.5

Net trading income

4'760

1'580

201.3

Other income

55'750

0

 

Total operating income

118'718

55'462

114.1

Personnel expenses

–20'376

–17'118

19.0

General and administrative expenses

–97'823

–7'537

 

Depreciation and amortisation

–7'882

–4'179

88.6

Services (from) / to segments

–22'717

–19'755

15.0

Total operating expenses

–148'798

–48'589

206.2

Segment profit before tax

–30'080

6'873

 

 

 

 

 

Performance figures

 

 

 

Net new money (in CHF millions)

76

 

 

Growth of net new money (in percent)

0.3

 

 

Cost-Income-Ratio (in percent)**

91.7

71.5

 

Gross margin (in basis points)***

48.1

44.3

 

 

 

 

 

Additional information

30.06.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

26'439

25'393

4.1

Assets under management (in CHF millions)

25'908

24'861

4.2

Employees (full time equivalents, in positions)

207

223

–7.2

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