Domestic Market

We have benefited in our home markets from our clients' return to traditional values such as safety, predictability and fairness, as well as from our local presence. In mortgage lending business, we posted a new record and further strengthened our leading market position. In Swiss onshore banking, we continued to attain our growth objectives on a step-by-step basis with Bank Linth.

Structure

The Domestic Market Business Division encompasses the universal and private banking business of the LLB Group in the home markets of Liechtenstein and Switzerland. Liechtensteinische Landesbank AG and Bank Linth LLB AG offer a full range of banking services. This includes investment advice and asset management, private financial planning and corporate pension provisioning, as well as savings, mortgage lending and commercial financing facilities. In total, we have 28 bank branches (5 in Liechtenstein, 23 in the Swiss cantons of Zurich, St. Gallen, Schwyz and Glarus) and 43 ATMs (15 in Liechtenstein, 28 in the cantons of Zurich, St. Gallen, Schwyz and Glarus). Roland Matt is responsible for the Domestic Market Business Division.

Market environment

Our branch network extends over an attractive business region. However, the fallout from the financial crisis was also felt in this region. In the year under report, the economy grew slowly and unemployment increased. The manufacturing industry was particularly hard hit by the crisis. In contrast, private consumption remained stable and construction activity continued at practically the same pace. The real estate market was also hardly affected with prices remaining stable at a high level. The current low level of interest rates may act as a driving force for an economic upturn, but the interest margin will remain under pressure.

Competitors

In the Liechtenstein market, our main competitors are the Liechtenstein universal banks, which are active both in private banking and corporate client business. In Switzerland, we are in competition with the cantonal and regional banks, the credit cooperative banks, as well as the large banks.

Strategy

Our objective continues to be steady growth. Together with Bank Linth, we aim to gain market shares in private and corporate client business as well as in onshore private banking. Moreover, we want to be one of the leading providers of private and corporate pension schemes. We have set the following strategic priorities:

  • active market penetration and safeguarding of advisory quality;
  • gaining of market shares in private banking business;
  • expansion of private financial planning and corporate pension services;
  • consolidation of leading position in mortgage lending business;
  • optimisation of operating efficiency.