Business segment result

The business volume of the Private Banking segment of the LLB Group declined in 2013 due to the closure of LLB (Switzerland) Ltd. to CHF 16.9 billion (31.12.2012: CHF 19.0 billion). The net new money outflow stood at CHF 1.5 billion (2012: inflow of CHF 143 million). Assets under management fell by 8.6 percent to CHF 15.8 billion (31.12.2012: CHF 17.3 billion).

The pleasing development on the financial markets was reflected in net fee and commission income, which rose by 22.4 percent to CHF 85.3 million (2012: CHF 69.7 million). Earnings from the LLB’s own funds and brokerage in particular contributed to this increase. Other income as well as personnel and general and administrative expenses were affected by one-off effects in connection with the sale of the Lugano bank branch and the US taxation dispute. The gross margin increased – adjusted for these one-off effects – by 8.3 basis points to 62.8 basis points. The Cost-Income-Ratio decreased to 60.3 percent (2012: 64.6 %). Total headcount fell by 31.9 percent to 124 full-time positions (31.12.2012: 182)

The segment result before tax stood at CHF 20.1 million, 10.1 percent above the level of the previous year (2012: CHF 18.3 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

18'515

22'208

–16.6

Credit loss (expense) / recovery

–20'400

–10'100

102.0

Net interest income after credit loss expense

–1'885

12'108

 

Net fee and commission income

85'326

69'730

22.4

Net trading income

8'892

9'197

–3.3

Other income

15'900

0

 

Total operating income

108'233

91'035

18.9

Personnel expenses

–28'980

–27'062

7.1

General and administrative expenses

–16'273

–14'094

15.5

Depreciation and amortisation

–2'459

–129

 

Services (from) / to segments

–40'409

–31'476

28.4

Total operating expenses

–88'121

–72'761

21.1

Segment profit before tax

20'112

18'274

10.1

Performance figures

 

 

 

 

2013

2012

*

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 new money (in CHF millions)

–1'474

143

Growth of net new money (in percent)

–8.5

0.9

Cost-Income-Ratio (in percent)*

60.3

64.6

Gross margin (in percent)**

71.6

54.5

Additional information

 

 

 

 

 

 

31.12.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

16'873

19'038

–11.4

Assets under management (in CHF millions)

15'770

17'262

–8.6

Employees (full time equivalent, in positions)

124

182

–31.9

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