The Liechtensteinische Landesbank private banking and wealth management group has reported operating income down 17.5 per cent and profit down over 40 per cent for 2010.

The Liechtensteinische Landesbank private banking and wealth management group has reported operating income down 17.5 per cent and profit down over 40 per cent for 2010.

Operating income was SFr436.9 million ($479.7 million), down from SFr529.3 million in 2009, with net profit at SFr108.5 million (SFr181.0 million in 2009). Return on equity was 6.2 per cent versus 10.8 per cent in 2009.

Assets under management stood at SFr49.777 billion at 31 December 2010, marginally up on SFr49.497 billion twelve months previously.

In a statement, the bank suggested that a strong Swiss franc and low interest rates were to blame for these results. It also said that a 5 per cent fall in net fee and commission income year-on-year was caused by uncertainty among investors in the face of “imponderables” on the financial markets.

A number of private banks in countries such as Switzerland have blamed the strength of the Swiss franc, low rates and some continued investor caution for a squeeze on recent profits.

The LL group is revising downwards its medium term return on equity target to 12 per cent (previously 15 per cent), but nonetheless says it believes the current year will show an improvement on the 2010 figures.

"We are pursuing a long-term growth strategy and continue to build on quality and good cost management. We plan to make investments in all business areas for the coming years. In our Liechtenstein home market we shall enhance service and care for our private clients. In Switzerland, the opening of the Bank Linth branches in Erlenbach and Winterthur will be in the forefront. In private labelling and custodian bank business we want to exploit the opportunities arising in connection with the implementation of the UCITS IV directive from 2011. Our international business bases will be expanded further in order to intensify our activities in Austria and Eastern Europe as well as the Near and Middle East", said Dr Josef Fehr, chairman of the board of management, in summarising the group's priorities.

The LLB group, majority-owned by the Principality of Liechtenstein, offers wealth management services as a universal bank, in private banking, asset management, fund services and trust services.