Corporate Center

Structure

The Corporate Center encompasses the Organizational Units Corporate Service Center, Group Finance & Risk, the Group Executive Management and the Special Clients Unit. It supports our market-oriented Domestic, International and Institutional Business Divisions in conducting their activities and implementing their strategies. The focus lies on functions in the areas of financial and risk management, marketing and communication, trading and securities administration, payment services, human resources management, legal services and compliance, corporate development, product management, logistics and information technology. The results of the LLB Group's own financial investments, the structural contribution and income from interest rate hedging are booked to the Corporate Center. Up to 15 January 2012, in the LLB’s Group Executive Management and Board of Management, Dr. Josef Fehr and Dr. Kurt Mäder were responsible for the Corporate Center. On 16 January the Board of Directors appointed Roland Matt as Group Chief Executive Officer, as well as Christoph Reich as Group Chief Financial Officer and member of the Group Executive Management and Board of Management. Consequently, during the remainder of the first half of 2012, Roland Matt, Christoph Reich and Dr. Kurt Mäder were responsible for the Corporate Center Business Segment.

Business division result

The positive development of the LLB Group’s own financial investments – recognized at fair value − showing a gain of CHF 22.1 million (30 June 2011: minus CHF 6.3 million) contributed substantially to the Group result. They are booked to the Corporate Center Business Segment. Net interest income rose by 40.1 percent to CHF 36.5 million (30 June 2011: CHF 26.1 million) and net fee and commission income climbed by 1.6 percent to CHF 4.5 million (30 June 2011: CHF 4.4 million). Accordingly, operating income increased by 210.6 percent to CHF 60.3 million (30 June 2011: CHF 19.4 million). Higher interest rate hedging costs had an adverse effect on net trading income, which stood at minus CHF 7.7 million (30 June 2011: minus CHF 5.8 million). Operating expenses decreased by 51.4 percent to CHF 17.8 million (30 June 2011: CHF 36.6 million), which was attributable largely to the change over of the Personnel Pension Foundation of LLB AG to a defined contribution scheme. The segment result before tax stood at CHF 42.5 million (30 June 2011: minus CHF 17.2 million). Client assets contracted by 5.2 percent to CHF 2.7 billion (31 December 2011: CHF 2.8 billion). Net new money outflow amounted to CHF 115 million (30 June 2011: outflow of CHF 117 million).

Segment reporting

 

 

 

 

 

in CHF thousands

First half
2012

First half
2011

+/– %

Net interest income

36'508

26'055

40.1

Net fee and commission income

4'470

4'399

1.6

Net trading income

–7'749

–5'766

34.4

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

22'050

–6'311

 

Share of net income of associates

4

0

 

Other income

5'061

1'050

382.0

Total operating income

60'344

19'427

210.6

Personnel expenses

–15'706

–27'369

–42.6

General and administrative expenses

–19'656

–18'733

4.9

Depreciation and amortisation

–10'012

–10'106

–0.9

Allowances, provisions and losses

–83

–731

–88.6

Services from/to segments

27'659

20'317

36.1

Total operating expenses

–17'798

–36'622

–51.4

Segment profit before tax

42'546

–17'195

 

 

 

 

 

Key figures

 

 

 

Net new money (in CHF millions)

–115

–117

–1.7

Growth of net new money (in percent)

–4.1

–3.7

 

 

 

 

 

Additional information

30.06.2012

31.12.2011

+/– %

Assets under management (in CHF millions)

2'663

2'808

–5.2

Employees (full time equivalents, in positions)

333

330

1.0

top of page