Retail & Corporate Banking

Private and corporate clients

The Retail & Corporate Banking Market Division of the LLB Group encompasses the universal banking business in the domestic markets of Liechtenstein and Switzerland. The Liechtensteinische Landesbank with headquarters in Vaduz and Bank Linth with headquarters in Uznach offer a full range of banking and financial services for private clients. This includes lending and deposit business as well as payment services together with investment and asset management from disposable assets of up to CHF 0.5 million. Traditionally, savings and mortgage lending business has always been of great importance. Furthermore, the Retail & Corporate Banking Market Division plays a very important role for the business community in Liechtenstein and eastern Switzerland. The corporate banking business focuses on providing a plethora of services for small and medium-sized enterprises (SMEs). These services are supplemented by private financial planning and corporate pension provisioning.

During the first half of 2013, Heinz Knecht was responsible for this business segment on the Group Executive Board.

Business segment result

During the first half of 2013, the Retail & Corporate Banking Business Segment registered a net new money outflow of CHF 51 million. Client assets under management however posted a market-related gain of 4.5 percent to CHF 7.7 billion (31 December 2012: CHF 7.4 billion).

Interest income after credit loss expense fell by 5.8 percent to CHF 41.8 million (30 June 2012: CHF 44.3 million). Fee and commission income rose by 3.5 percent to CHF 12.7 million (30 June 2012: CHF 12.3 million). Thanks to the positive performance of the markets, trading income climbed to CHF 3.5 million (30 June 2012: CHF 1.2 million). At CHF 58.0 million (30 June 2012: CHF 57.8 million), operating income remained constant. Operating expenses increased by 15.5 percent to CHF 38.4 million (30 June 2012: CHF 33.3 million).

The Cost-Income-Ratio rose to 65.0 percent (30 June 2012: 57.2 %) and was therefore above the LLB Groups target Cost-Income-Ratio of 60 percent.

The segment profit before tax decreased by 20.1 percent to CHF 19.6 million (30 June 2012: CHF 24.5 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

42'883

44'746

–4.2

Credit loss (expense) / recovery

–1'117

–423

164.1

Net interest income after credit loss expense

41'766

44'323

–5.8

Net fee and commission income

12'707

12'281

3.5

Net trading income

3'532

1'172

201.4

Total operating income

58'005

57'776

0.4

Personnel expenses

–15'829

–13'298

19.0

General and administrative expenses

–964

–1'187

–18.8

Depreciation and amortisation

–55

–29

89.7

Services (from) / to segments

–21'570

–18'758

15.0

Total operating expenses

–38'418

–33'272

15.5

Segment profit before tax

19'587

24'504

–20.1

 

 

 

 

Performance figures

 

 

 

Net new money (in CHF millions)

–51

 

 

Growth of net new money (in percent)

–0.7

 

 

Cost-Income-Ratio (in percent)**

65.0

57.2

 

Gross margin (in basis points)***

72.8

74.9

 

 

 

 

 

Additional information

30.06.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

16'474

15'991

3.0

Assets under management (in CHF millions)

7'732

7'399

4.5

Employees (full time equivalents, in positions)

247

244

1.1

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