Business segment result

On the basis of the market interest method, the LLB Group reports the structural contribution, the results of its own financial investments, and the income from interest rate hedge accounting under the Corporate Center.

Interest income after credit loss expense fell by 24.7 percent to CHF 32.1 million (2012: CHF 42.6 million) and fee and commission income decreased to minus CHF 1.0 million (2012: CHF 6.6 million). The valuation of interest rate hedging instruments had a positive effect on net trading income, which stood at CHF 32.9 million (2012: minus CHF 5.9 million). In contrast, we posted a fall in income from financial investments of 64.5 percent to CHF 15.6 million (2012: CHF 44.1 million). Operating income decreased by 8.6 percent to CHF 87.2 million (2012: 95.3 million). As a result of the costs for the implementation of the Focus2015 strategy, operating expenses increased to CHF 54.6 million (2012: CHF 47.8 million). Overall, the segment profit before tax declined by 31.6 percent to CHF 32.5 million (2012: 47.6 million).

Segment reporting

 

 

 

 

 

in CHF thousands

2013

2012*

+/– %

*

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

Net interest income

32'066

52'772

–39.2

Credit loss (expense) / recovery

0

–10'200

–100.0

Net interest income after credit loss expense

32'066

42'572

–24.7

Net fee and commission income

–1'027

6'592

 

Net trading income

32'857

–5'938

 

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

15'645

44'121

–64.5

Share of net income of associates

5

7

–28.6

Other income

7'607

7'968

–4.5

Total operating income

87'153

95'322

–8.6

Personnel expenses

–75'884

–62'723

21.0

General and administrative expenses

–58'171

–64'109

–9.3

Depreciation and amortisation

–46'307

–29'824

55.3

Services (from) / to segments

125'733

108'895

15.5

Total operating expenses

–54'629

–47'761

14.4

Segment profit before tax

32'524

47'561

–31.6

Additional information

 

 

 

 

 

 

31.12.2013

31.12.2012

+/– %

Employees (full time equivalent, in positions)

400

440

–9.1

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