Domestic Market

Structure

The Domestic Market Business Segment represents a solid pillar of the LLB Group. It encompasses the universal banking and private banking business in the domestic markets of Liechtenstein and Switzerland. The Liechtensteinische Landesbank with headquarters in Vaduz and Bank Linth with headquarters in Uznach offer a full range of banking and financial services for private and corporate clients. These services include investment counselling and asset management, private financial planning and corporate pension provisioning, as well as savings and mortgage lending business. We have 5 bank branches in Liechtenstein and 25 in the Swiss cantons of Zurich, St. Gallen, Schwyz and Glarus. Furthermore, we also operate 50 ATMs at 20 locations in Liechtenstein and 30 in the east of Switzerland. During the first half of 2012, in the LLB’s Group Executive Management and Board of Management, Urs Müller was responsible for the Domestic Market Business Segment.

Business segment result

In a difficult market environment, the Domestic Market Business Segment did not attain the previous year’s result. Operating income fell in the first half of 2012 by 3.2 percent to CHF 72.3 million (30 June 2011: CHF 74.7 million). Operating expenses rose slightly to CHF 53.7 million (30 June 2011: CHF 52.9 million), corresponding to an increase of 1.4 percent. The segment result before tax of CHF 18.6 million was 14.3 percent under the level of the previous year (30 June 2011: CHF 21.7 million). The Cost-Income-Ratio increased to 73.6 percent (30 June 2011: 70.3 %). Client assets grew by 1.8 percent to CHF 14.0 billion (31 December 2011: CHF 13.8 billion). Net new money totalled CHF 140 million (30 June 2011: CHF 262 million).

Segment reporting

 

 

 

 

 

in CHF thousands

First half
2012

First half
2011

+/– %

Net interest income

48'465

52'268

–7.3

Net fee and commission income

19'295

19'162

0.7

Net trading income

4'554

4'115

10.7

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

0

0

 

Share of net income of associates

0

–872

–100.0

Other income

0

0

 

Total operating income

72'314

74'673

–3.2

Personnel expenses

–24'134

–26'583

–9.2

General and administrative expenses

–10'653

–11'245

–5.3

Depreciation and amortisation

–3'216

–3'266

–1.5

Allowances, provisions and losses

–423

–450

–6.0

Services from/to segments

–15'254

–11'386

34.0

Total operating expenses

–53'680

–52'930

1.4

Segment profit before tax

18'634

21'743

–14.3

 

 

 

 

Key figures

 

 

 

Net new money (in CHF millions)

140

262

–46.6

Growth of net new money (in percent)

1.0

2.0

 

Cost-Income-Ratio (in percent)

73.6

70.3

 

Operating income/average assets under management (annualized, in basis points)

104.1

111.2

 

 

 

 

 

Additional information

30.06.2012

31.12.2011

+/– %

Assets under management (in CHF millions)

14'013

13'766

1.8

Employees (full time equivalents, in positions)

400

418

–4.4

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