Business segment result

The business volume of the Retail & Corporate Banking segment of the LLB Group grew by 5.8 percent to CHF 16.9 billion (31.12.2012: CHF 16.0 billion) in 2013. Lending business again developed positively with loans rising by 2.7 percent or CHF 234 million. Assets under management posted a performance-related gain of 9.3 percent to CHF 8.1 billion (31.12.2012: CHF 7.4 billion). The segment reported a slight net new money outflow of CHF 2 million (2012: inflow of CHF 238 million). Headcount declined by 3.7 percent to 235 full-time positions (31.12.2012: 244).

On balance, fee and commission income as well as trading income exceeded last year’s result. In 2013, interest income stood at CHF 84.7 million, or 7.2 percent below 2012 (CHF 91.2 million). The decrease was attributable to the persisting pressure on margins with due to customers. Interest income after credit loss expense benefited from substantially lower value adjustments. It rose by 18.2 percent to CHF 85.5 million (2012: CHF 72.3 million). Thanks to the good stock market year in 2013, fee and commission income increased substantially by 26.8 percent to CHF 24.3 million (2012: CHF 19.2 million). Income from trading climbed by 11.3 percent to CHF 7.7 million (2012: CHF 7.0 million).

In total, operating income rose by 20.2 percent to CHF 118.3 million (2012: CHF 98.4 million). At the same time, operating expenses increased by 9.6 percent to CHF 74.4 million (2012: CHF 67.8 million). Personnel expenses climbed by 3.6 percent to CHF 28.9 million (2012: CHF 27.9 million). General and administrative expenses were up by 6.8 percent to CHF 3.5 million (2012: CHF 3.3 million). The increase was largely due to higher costs for services from other segments, as well as provisions for the US taxation dispute, a proportion of which was booked to the Retail & Corporate Banking segment. The cost-to-income ratio increased to 62.5 percent (2012: 57.8 %).

The segment profit before tax rose sharply by 43.5 percent to CHF 43.9 million (2012: CHF 30.6 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

84'669

91'218

–7.2

Credit loss (expense) / recovery

817

–18'916

 

Net interest income after credit loss expense

85'486

72'302

18.2

Net fee and commission income

24'301

19'163

26.8

Net trading income

7'748

6'960

11.3

Other income

744

0

 

Total operating income

118'279

98'425

20.2

Personnel expenses

–28'928

–27'916

3.6

General and administrative expenses

–3'485

–3'264

6.8

Depreciation and amortisation

–107

–140

–23.6

Services (from) / to segments

–41'857

–36'520

14.6

Total operating expenses

–74'377

–67'840

9.6

Segment profit before tax

43'902

30'585

43.5

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)

–2

238

Growth of net new money (in percent)

0.0

3.3

Cost-Income-Ratio (in percent)*

62.5

57.8

Gross margin (in percent)**

71.4

75.3

Additional information

 

 

 

 

 

 

31.12.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

16'916

15'991

5.8

Assets under management (in CHF millions)

8'089

7'399

9.3

Employees (full time equivalent, in positions)

235

244

–3.7

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