Institutional Market

Structure

The Institutional Market Business Segment encompasses the classic financial intermediary and fund business as well as the asset management operations of the LLB Group. Together with the three Group companies LLB Asset Management AG, LLB Fund Services AG and LLB Fondsleitung AG, we concentrate on fulfilling the requirements of professional investors and financial intermediaries. Fiduciaries, asset managers, fund promoters and investment undertakings attach great importance to quality. At the LLB, we offer them comprehensive services within the context of a one-stop boutique for the setting up and management of private label funds as a custodian bank, as well as a manager and provider of our own LLB funds. Our target markets are Liechtenstein and Switzerland. During the first half of 2012, in the LLB’s Group Executive Management and Board of Management, Urs Müller was responsible for the International Market Business Segment.

Business division result

In the Institutional Market Business Segment operating income decreased by 9.2 percent to 43.7 million (30 June 2011: CHF 48.2 million). Net interest income fell by 16.0 percent to CHF 5.7 million (30 June 2011: CHF 6.8. million), net fee and commission income was down by 9.7 percent to CHF 33.9 million (30 June 2011: CHF 37.5 million). In contrast, net trading income rose by 7.6 percent to CHF 4.2 million (30 June 2011: CHF 3.9 million). Operating expenses decreased by 32.5 percent to CHF 18.2 million (30 June 2012: CHF 27.0 million). The segment result before tax climbed by 20.4 percent to CHF 25.5 million (30 June 2012: CHF 21.2 million). The Cost-Income-Ratio stood at 32.0 percent (30 June 2012: 30.8 %). The Institutional Market Business Segment managed CHF 18.2 billion in client assets per 30 June 2012, corresponding to a growth of 1.0 percent compared with 31 December 2011 (CHF 18.1 billion). The net new money outflow totalled CHF 50 million (30 June 2011: inflow of CHF 298 million).

Segment reporting

 

 

 

 

 

in CHF thousands

First half
2012

First half
2011

+/– %

Net interest income

5'675

6'757

–16.0

Net fee and commission income

33'852

37'502

–9.7

Net trading income

4'214

3'918

7.6

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

0

0

 

Share of net income of associates

0

0

 

Other income

0

0

 

Total operating income

43'741

48'177

–9.2

Personnel expenses

–5'317

–6'764

–21.4

General and administrative expenses

–1'103

–1'370

–19.5

Depreciation and amortisation

–107

–130

–17.7

Allowances, provisions and losses

–4'236

–12'131

–65.1

Services from/to segments

–7'456

–6'583

13.3

Total operating expenses

–18'219

–26'978

–32.5

Segment profit before tax

25'522

21'199

20.4

 

 

 

 

Key figures

 

 

 

Net new money (in CHF millions)

–50

298

 

Growth of net new money (in percent)

–0.3

1.6

 

Cost-Income-Ratio (in percent)

32.0

30.8

 

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

48.2

51.9

 

 

 

 

 

Additional information

30.06.2012

31.12.2011

+/– %

Assets under management (in CHF millions)

18'236

18'059

1.0

Employees (full time equivalents, in positions)

79

79

 

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