Market effects and costs of bedding in acquired businesses depressed profits, although net new money was the highest since 2010.

Liechtensteinische Landesbank, aka LLB Group, logged net new money in 2018 of SFr1.3 billion ($1.294 billion), which the private bank said is the highest influx since 2010, helping client assets to surge by 33.9 per cent from a year earlier to SFr67.3 billion.

Total business reached SFr80.1 billion (+28.6 per cent on the year), a new record. 

Last year the lender completed the integration of LB (Swiss) Investment and merged Semper Constantia Privatbank with LLB Österreich, becoming the new Liechtensteinische Landesbank (Österreich). 

On account of market effects and costs of integrating the acquired business, LLB said in a statement that its net profit shrank by 23.5 per cent to SFr85.1 million.

"In the 2018 business year the LLB Group continued to grow, both organically and through acquisitions", Georg Wohlwend, chairman of the board of directors, said.

The M&A deals last year meant that LLB Group is “now not only the longest established universal bank in Liechtenstein and the largest regional bank in eastern Switzerland, but also the leading asset management bank in Austria", he continued. 

Net fee and commission income increased by 13.2 per cent to SFr175.3 million (2017: SFr154.8 million). The rise was attributable to the acquisition of LB(Swiss) Investment AG and Semper Constantia Privatbank AG, marketing measures and product and service launches.

Interest income before expected credit loss increased, in spite of negative interest rates, by 8.3 per cent to SFr158.0 million (2017: SFr145.9 million). 

Net trading income fell to SFr73.8 million (2017: SFr82.9 million). Whereas trading in foreign exchange, foreign notes and precious metals expanded compared with the previous year - by 5.0 per cent to SFr64.4 million - the sidewards trend with Swiss franc interest rates led to lower valuation gains with interest rate swaps of SFr9.4 million (2017: SFr21.5 million).