Segment reporting by operating segments

The business activities of the LLB Group are divided into the following three business areas. These form the basis for the segment reporting:

  • Retail & Corporate Banking Segment encompasses the universal banking business in the home markets of Liechtenstein and Switzerland.
  • Private Banking Segment encompasses all the private banking activities of the LLB Group.
  • Institutional Clients Segment encompasses the financial intermediary and investment fund business, as well as the asset management and wealth structuring activities of the LLB Group

The segments receive comprehensive support from the Corporate Center. It comprises the following functions: financial and risk management, legal and compliance matters, trading and securities administration, payment services, human resources management, communication and branding, corporate development, as well as logistics and IT services.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Management (chief operating decision maker), which is responsible for allocating resources to the reportable segments and assesses their performance. All operating segments used by the LLB Group meet the definition of a reportable segment under IFRS 8.

In accordance with the principle of responsibility, and based on the organizational structure, income and expenditure are allocated to the business divisions. Indirect costs resulting from services provided internally are accounted for according to the principle of causation and are recorded as a revenue increase for the service provider and as a cost increase for the service beneficiary. The remaining income and expenditure for overriding services which cannot be assigned to the segments are shown under Corporate Center. Furthermore, consolidation adjustments are reported under Corporate Center.

The information provided about each segment is based on internal reports concerning segment accounting, assets and other information, which are regularly reviewed by the Group Executive Board.

Transactions between the segments were executed at standard market conditions.

On 1 July 2012, an internal restructuring of the segments was carried out. Up to 30 June 2012, the LLB Group allocated income and expense positions of the Group companies according to their legal structure to the individual segments. The income and expense positions of LLB Group were assigned to the individual segments on the basis of specified parameters and assumptions. On the basis of the new segment structure since 1 July 2012, the income and expense positions of all companies have been allocated to the individual segments on the basis of their business activities. In most cases this means that the income and expense positions of legal companies are no longer assigned to just one segment. The segment reporting as per 31 December 2011 has been adjusted to reflect the new segments.

Business year 2013

in CHF thousands

Retail &
Corporate
Banking

Private
Banking

Institu-
tional
Clients

Corporate
Center

Total
Group

*

There were no substantial earnings generated between the segments so that income between the segments was not material.

Net interest income

84'669

18'515

10'469

32'066

145'719

Credit loss (expense) / recovery

817

–20'400

–5'400

0

–24'983

Net interest income after credit loss expense

85'486

–1'885

5'069

32'066

120'736

Net fee and commission income

24'301

85'326

101'816

–1'027

210'416

Net trading income

7'748

8'892

9'136

32'857

58'633

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

0

0

0

15'645

15'645

Share of net income of associates

0

0

0

5

5

Other income

744

15'900

57'283

7'607

81'534

Total operating income*

118'279

108'233

173'304

87'153

486'969

Personnel expenses

–28'928

–28'980

–39'384

–75'884

–173'176

General and administrative expenses

–3'485

–16'273

–116'212

–58'171

–194'141

Depreciation and amortisation

–107

–2'459

–9'853

–46'307

–58'726

Services (from) / to segments

–41'857

–40'409

–43'467

125'733

0

Total operating expenses

–74'377

–88'121

–208'916

–54'629

–426'043

Operating profit before tax

43'902

20'112

–35'612

32'524

60'926

Tax expenses

 

 

 

 

–7'153

Net profit

 

 

 

 

53'773

Business year 2012 *

in CHF thousands

Retail &
Corporate
Banking

Private
Banking

Institu-
tional
Clients

Corporate
Center

Total
Group

*

The comparison period was adjusted with regard to the adaption of IAS 19 (revised). See point 2.1 of the accounting principles for details.

**

There were no substantial earnings generated between the segments so that income between the segments was not material.

Net interest income

91'218

22'208

15'026

52'772

181'224

Credit loss (expense) / recovery

–18'916

–10'100

–7'300

–10'200

–46'516

Net interest income after credit loss expense

72'302

12'108

7'726

42'572

134'708

Net fee and commission income

19'163

69'730

107'975

6'592

203'460

Net trading income

6'960

9'197

8'407

–5'938

18'626

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

0

0

0

44'121

44'121

Share of net income of associates

0

0

0

7

7

Other income

0

0

0

7'968

7'968

Total operating income**

98'425

91'035

124'108

95'322

408'890

Personnel expenses

–27'916

–27'062

–45'902

–62'723

–163'603

General and administrative expenses

–3'264

–14'094

–21'272

–64'109

–102'739

Depreciation and amortisation

–140

–129

–4'506

–29'824

–34'599

Services (from) / to segments

–36'520

–31'476

–40'899

108'895

0

Total operating expenses

–67'840

–72'761

–112'579

–47'761

–300'941

Operating profit before tax

30'585

18'274

11'529

47'561

107'949

Tax expenses

 

 

 

 

–12'890

Net profit

 

 

 

 

95'059

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group’s revenues.

top of page