Segment reporting by business division
audited information

Segment reporting

In the financial year 2009, segment reporting by the Group was prepared for the first time in accordance with IFRS 8, «Operating segments». Segment information for 2008 has been restated to conform to the requirements of IFRS 8.

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Board (the chief operating decision maker), which is responsible for allocating resources to the reportable segments and assesses its performance. All operating segments used by the Group meet the definition of a reportable segment under IFRS 8.

In conjunction with our focused growth strategy, we have also aligned our organisational structure even more strongly on our client and market segments.

Accordingly, the LLB Group is divided into the following three segments:

  • Domestic Market: universal banking and private banking business in the home markets of Liechtenstein and Switzerland, that includes investment counselling and asset management, private financial planning and corporate pension provisioning, as well as savings, mortgage lending and commercial financing facilities.
  • International Market: international private banking operations and wealth management services in the markets Austria, Germany, Italy, Eastern Europe, as well as the Near and Middle East.
  • Institutional Market: financial intermediary business, investment funds and asset management.

The Corporate Center comprise the following functions: financial and risk management, trading and securities administration, payment services, human resources, marketing and communication, legal services and compliance, corporate development, as well as logistics and IT services.

There were no changes in the reportable segments during the year. Transactions between the business segments are carried out at arm’s length.

The information provided about each segment is based on the internal reports about segment profit or loss, assets and other information, which are regularly reviewed by the Group Executive Board.

The segment information provided to the Group Executive Board for the reportable segments for the year ended 31 December 2009 is as follows:

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in CHF thousands

Domestic
Clients

Inter-
national
Clients

Institu-
tional
Clients

Corporate Center

Total
Group

Net interest income

103'599

13'988

19'941

56'867

194'395

Net fee and commission income

34'205

115'616

75'038

11'131

235'990

Net trading income

7'857

8'728

11'274

–1'718

26'141

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

0

0

0

33'156

33'156

Share of net income from investments
in associates

–696

0

0

31'605

30'909

Other income

0

4'377

0

4'378

8'755

Total operating income

144'965

142'709

106'253

135'419

529'346

Personnel expenses

–50'340

–66'596

–14'558

–47'569

–179'063

General and administrative expenses

–21'793

–22'801

–2'571

–32'686

–79'851

Depreciation and amortisation

–6'492

–9'861

–68

–11'138

–27'559

Value adjustments, provisions
and losses

–4'455

–14'961

4'556

–32'241

–47'101

Services from/to segments

–17'518

–4'832

–13'682

36'032

0

Total operating expenses

–100'598

–119'051

–26'323

–87'602

–333'574

Business division profit before tax

44'367

23'658

79'930

47'817

195'772

Income tax expenses

 

 

 

 

–14'744

Net profit

 

 

 

 

181'028

 

 

 

 

 

 

Additional information

 

 

 

 

 

Divisional assets (in CHF millions)

7'975

4'103

471

10'361

22'910

of which shares in associates

6

0

0

261

267

Divisional liabilities (in CHF millions)

7'721

6'210

4'262

2'953

21'146

Capital expenditure

846

7'214

0

44'095

52'155

The segment information provided to the Group Executive Board for the reportable segments for the year ended 31 December 2008 is as follows:

 Download Excel

in CHF thousands

Domestic
Clients

Inter-
national
Clients

Institu-
tional
Clients

Corporate Center

Total
Group

Net interest income

116'529

26'279

38'139

62'072

243'019

Net fee and commission income

38'380

123'374

94'516

11'971

268'241

Net trading income

8'313

7'635

12'926

7'419

36'293

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

0

0

0

–16'933

–16'933

Share of net income from investments
in associates

–153

0

0

–67'302

–67'455

Other income

0

12'545

0

5'285

17'830

Total operating income

163'069

169'833

145'581

2'512

480'995

Personnel expenses

–47'875

–58'809

–13'154

–46'160

–165'998

General and administrative expenses

–22'241

–18'841

–3'084

–36'963

–81'129

Depreciation and amortisation

–6'563

–8'394

–80

–8'438

–23'475

Value adjustments, provisions
and losses

–18'799

–16'198

–8'012

0

–43'009

Services from/to segments

–17'813

–4'943

–13'479

36'235

0

Total operating expenses

–113'291

–107'185

–37'809

–55'326

–313'611

Business division profit before tax

49'778

62'648

107'772

–52'814

167'384

Income tax expenses

 

 

 

 

–16'830

Net profit

 

 

 

 

150'554

 

 

 

 

 

 

Additional information

 

 

 

 

 

Divisional assets (in CHF millions)

7'712

3'417

547

11'526

23'202

of which shares in associates

7

0

0

230

237

Divisional liabilities (in CHF millions)

7'596

6'123

4'536

3'280

21'535

Capital expenditure

771

16'057

58

18'672

35'558

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group’s revenues.