Reports
Liechtenstein Private Bank's Profits Surge, Presses On With Restructuring
Liechtensteinische Landesbank, the private bank based in the tiny European principality, said its net profit in 2012 surged to SFr97.9 million ($103.5 million) from SFr15.4 million a year before - a 535.5 per cent increase - while operating income rose 20.5 per cent to SFr408.9 million.
LLB has been restructuring its business lines with its “Focus2015” strategy. “It is focusing on clearly defined client segments and markets and reducing complexity and costs, thereby increasing profitability,” the bank said in a statement today.
"With the Focus2015 strategy, we are creating the basis for the sustained success and future-oriented development of the LLB Group. Over the next three years, we will consistently focus our financial and personnel resources on clearly defined client segments and markets with potential, in which the LLB Group can already demonstrate a solid position," group chief executive Roland Matt said.
The firm said the number of staff will drop to 840 full time roles; restructuring costs are expected to be around SFr7 million. By the end of 2015, LLB said it wants to achieve a cost/income ratio – currently 61.7 per cent – of less than 60 per cent; a Tier 1 capital ratio, under Basel rules, of more than 16 per cent, and a cumulative business result between 2013 and 2015 of more than SFr300 million.
Assets
Assets under management rose by 3.7 per cent year-on-year to SFr49.9 billion, driven by positive market conditions. There was a net money outflow of SFr392 million.
Net interest income fell by 4.5 per cent to SFr181.2 million, and net fee and commission income dropped 2.6 per cent to SFr203.5 million.
Personnel expenses fell by 11.2 per cent to SFr160.8 million. Administrative expenses fell by 1.4 per cent to SFr102.7 million.
The Focus2015 strategy has involved the following moves: Closure of LLB (Switzerland), sale of Jura Trust, adjustment of the network of branch offices, intensified sales and marketing activities in growth markets, and expansion of fund services.
The cost/income ratio fell to 61.7 per cent last year, against 75.9 per cent in 2011, LLB said.