Liechtensteinische Landesbank said today that it logged a 19.1 per cent year-on-year rise in operating income last year, at SFr487 million ($552.9 million), while operating costs increased sharply by 41.6 per cent, to SFr426 million.

Liechtensteinische Landesbank said today that it logged a 19.1 per cent year-on-year rise in operating income last year, at SFr487 million ($552.9 million), while operating costs increased sharply by 41.6 per cent, to SFr426 million.

Special factors, including provisions for LLB’s US taxation issue and restructuring of its operations under the Focus2015 plan, cut net profit to SFr58.6 million. The US authorities had been investigating whether clients of LLB had violated US taxation law.

Adjusted for these special factors, the net profit is at the level of the previous year, and operating expenses fell by 10.2 per cent, the bank said in a statement.

Assets under management as of 31 December stood at SFr49.1 billion. Net new money outflow was SFr2.2 billion. Not counting outflows resulting from the closure of LLB (Switzerland), the strategic target markets recorded solid new money inflows of SFr1.7 billion.

Total staffing at the bank fell from 1,090 at the end of 2012 to 925 full-time equivalents.

At the end of last year, the bank had a Tier 1 ratio of 18.8 per cent.

“The environment remains challenging in 2014. The structural change in the banking sector is in full swing, and the regulatory environment is becoming increasingly complex. At the same time, the recovery of different economic areas is not uniform; the economy in the eurozone, for instance, is improving only sluggishly. The persistently low interest rate level is also a burden. The restraint and uncertainty of clients and investors continue to be felt, while demands are growing at the same time. Margins remain under pressure, and the intensity of competition is rising,” the bank said.

“In the current business year, the LLB Group is focusing on consistent implementation of the Focus2015 strategy. For this purpose, it is developing an innovative product and price model in investing, improving excellence in distribution, and expanding advisory capacities in growth markets. In addition, the fund services growth area is being expanded, efficiency is being improved through process optimisations, and the product structure for corporate clients is being expanded,” it added.