International Market

Structure

The International Market Business Segment encompasses the international private banking of the LLB Group. We possess extensive and detailed knowledge accumulated over many years in these business areas. Under the brands «Liechtensteinische Landesbank» – including LLB Switzerland and LLB Österreich – as well as Jura Trust and swisspartners Investment Network, we support wealthy private clients with the benefits of our experience and our knowledge. We offer them investment advice, asset management, asset structuring and financial planning. We place our focus on the markets in Germany, Austria, Italy, Russia, Eastern Europe as well as the Near and Middle East. We have business bases in Vaduz, Zurich, Lugano, Geneva, Vienna, Abu Dhabi and Dubai. During the first half of 2012, in the LLB’s Group Executive Management and Board of Management, Roland Matt was responsible for the International Market Business Segment on an interim basis.

Business segment result

The volatile financial markets and uncertainty among investors had a substantial influence on the result attained by the International Market Business Segment in the first half of 2012. Operating income fell and at CHF 57.4 million was 9.0 percent lower than in the equivalent period in the previous year (30 June 2011: CHF 63.1 million). Interest differential business posted a plus of 12.3 percent to CHF 7.9 million (30 June 2011: CHF 7.0 million), while fee and commission income fell by 2.1 percent to CHF 45.5 million (30 June 2011: CHF 46.5 million). Net trading income rose by 53.0 percent to CHF 4.1 million (30 June 2011: CHF 2.7 million). Operating expenses increased by 46.3 percent to CHF 74.4 million (30 June 2011: CHF 50.9 million). The rise was attributable above all to allowances, provisions and losses amounting to CHF 24.1 million. The segment result before tax showed a loss of CHF 17.0 million (30 June 2011: gain of CHF 12.3 million). The Cost-Income-Ratio climbed to 87.6 percent (30 June 2011: 81.5 %). Client assets expanded by 2.4 percent to CHF 13.8 billion (31 December 2011: CHF 13.5 billion). The net new money inflow totalled CHF 26 million in the first six months of 2012 (30 June 2011: CHF 86 million).

Segment reporting

 

 

 

 

 

in CHF thousands

First half
2012

First half
2011

+/– %

Net interest income

7'852

6'995

12.3

Net fee and commission income

45'521

46'491

–2.1

Net trading income

4'071

2'661

53.0

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

6'970

–100.0

Total operating income

57'444

63'117

–9.0

Personnel expenses

–29'802

–32'921

–9.5

General and administrative expenses

–11'131

–11'331

–1.8

Depreciation and amortisation

–4'430

–4'846

–8.6

Allowances, provisions and losses

–24'093

594

 

Services from/to segments

–4'949

–2'348

110.8

Total operating expenses

–74'405

–50'852

46.3

Segment profit before tax

–16'961

12'265

 

 

 

 

 

Key figures

 

 

 

Net new money (in CHF millions)

26

86

–69.8

Growth of net new money (in percent)

0.2

0.6

 

Cost-Income-Ratio (in percent)

87.6

81.5

 

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

84.3

89.0

 

 

 

 

 

Additional information

30.06.2012

31.12.2011

+/– %

Assets under management (in CHF millions)

13'785

13'467

2.4

Employees (full time equivalents, in positions)

308

296

4.0

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