Consolidated management report
LLB Group financial statement
The consolidated financial statement is prepared in accordance with the International Financial Reporting Standards (IFRS). In the 2013 business year, the LLB Group earned a net profit of CHF 53.8 million. The previous year was adjusted due to IAS 19 (revised). The restated Group profit for 2012 amounted to CHF 95.1 million. In comparison with the previous year, Group net profit in 2013 decreased by 43.4 percent. This was attributable to one-off effects in connection with the new strategic direction of the LLB Group and the US taxation dispute, which impacted the Group business result to a total of CHF 58.6 million. This total comprises provisions for US risks of CHF 33.2 million, a net charge of CHF 14.7 million arising from the impairment of goodwill, together with a positive adjustment to purchase price obligations from acquisitions, provisions for restructuring measures of CHF 5.8 million, as well as an expense of CHF 8.1 million for the deconsolidation of the Jura Trust Group, which was sold in autumn 2013. The closure of LLB (Switzerland) Ltd. resulted in net proceeds of CHF 3.2 million.
Without these one-off effects, the LLB Group would have reported a net profit for the 2013 business year of CHF 112.4 million. In comparison with the previous year, and adjusted for the positive special factor in 2012 of CHF 19.8 million for the change over from a defined benefit to a defined contribution plan made by the Personnel Pension Fund Foundation of Liechtensteinische Landesbank AG, the Group net profit for the 2013 business year would have been CHF 37.1 million, or 49.3 percent, higher than in 2012.
The net profit attributable to the shareholders of LLB stood at CHF 49.8 million (2012: CHF 91.4 million). Earnings per share amounted to CHF 1.75 (2012: CHF 3.22).
Assets under management
Assets under management totalled CHF 49.1 billion at 31 December 2013 (31.12.2012: CHF 49.9 billion). Assets in own-managed funds rose by 7.9 percent to CHF 4.2 billion (31.12.2012: CHF 3.9 billion). Assets with discretionary mandates increased just as strongly by 7.3 percent to CHF 8.3 billion (31.12.2012: CHF 7.7 billion). Other assets under management totalled CHF 36.6 billion (31.12.2012: CHF 38.3 billion).
Net new money inflows and the positive market performance of assets under management compensated to some extent for the outflows due to the closure of LLB Switzerland. In the year under report, we registered a net new money outflow of CHF 2'167 million. Of this total, outflows of CHF 3'218 million were attributable to the closure of LLB Switzerland. The remaining Group companies achieved a gratifying net new money inflow of CHF 1'051 million.
Assets under management per 31 December 2013
CHF 49.1 billion