Private Banking

National and international wealth management

The Private Banking Market Division encompasses all the private banking activities of the LLB Group. We offer investment advice, asset management, wealth structuring and financial planning services. We place our focus on the local markets in Liechtenstein, Switzerland and Austria, our traditional markets in Germany and the rest of Western Europe, as well as the growth markets in Central and Eastern Europe together with the Near and Middle East. We are represented in the following international business locations: Vaduz, Geneva, Vienna, Abu Dhabi and Dubai as well as in the branches of Bank Linth and those of the LLB in Liechtenstein.

In the first half of 2013, Gabriel Brenna was responsible for the business segment in the Group Executive Board.

Business segment result

The Private Banking Business Segment achieved an inflow of net new money in the growth markets. In the cross-border markets, however, we registered outflows. In addition, outflows occurred due to the closure of LLB (Switzerland) Ltd. In total, the net new money outflow amounted to CHF 230 million. Client assets under management fell by 2.4 percent to CHF 16.8 billion (31 December 2012: CHF 17.3 billion).

Interest income after credit loss expense rose to CHF 5.5 million (30 June 2012: minus CHF 14.0 million). Fee and commission income climbed by 3.5 percent to CHF 43.6 million (30 June 2012: CHF 42.1 million). Trading income increased to CHF 4.7 million (30 June 2012: CHF 1.6 million). In total, operating income grew by 81.2 percent to CHF 53.7 million (30 June 2012: CHF 29.7 million). Operating expenses increased by 44.2 percent to CHF 45.9 million (30 June 2012: CHF 31.9 million). General and administrative expenses contain a portion of the provisions set aside for the US tax issue.

At CHF 7.8 million, the segment profit before tax was higher than the value in the previous year (30 June 2012: minus CHF 2.2 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

9'655

10'074

–4.2

Credit loss (expense) / recovery

–4'200

–24'093

–82.6

Net interest income after credit loss expense

5'455

–14'019

 

Net fee and commission income

43'579

42'117

3.5

Net trading income

4'687

1'555

201.4

Total operating income

53'721

29'653

81.2

Personnel expenses

–13'370

–11'232

19.0

General and administrative expenses

–11'416

–2'235

410.8

Depreciation and amortisation

–12

–6

100.0

Services (from) / to segments

–21'132

–18'377

15.0

Total operating expenses

–45'930

–31'850

44.2

Segment profit before tax

7'791

–2'197

 

 

 

 

 

Performance figures

 

 

 

Net new money (in CHF millions)

–230

 

 

Growth of net new money (in percent)

–1.3

 

 

Cost-Income-Ratio (in percent)**

62.7

45.5

 

Gross margin (in basis points)***

61.6

58.8

 

 

 

 

 

Additional information

30.06.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

18'575

19'038

–2.4

Assets under management (in CHF millions)

16'849

17'262

–2.4

Employees (full time equivalents, in positions)

160

182

–11.9

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