Profits, AuM Rise At Liechtenstein's LLB

Tom Burroughes

13 March 2020

, the private banking group, said that group net profit in 2019 surged by 44.9 per cent to SFr123.4 million ($130.3 million), while client assets under management rose by 13.4 per cent o SFr76.3 million at the end of last year.

Client loans increased by 0.8 per cent to SFr13.0 billion, it said in a statement.

The banking group said that it has become more profitable after putting in place restructuring plans in the past decade, known as its StepUp2020 strategy.

"Thanks to broad diversification and targeted acquisitions, we have significantly improved our earning power and quality. And we have achieved this in spite of a very challenging market environment," Georg Wohlwend, chairman, said in a statement.

"The net profit for the year of SFr123.4 million was the highest attained by the LLB Group for ten years,” Wohlwend said.

All three booking centres in Liechtenstein, Austria and Switzerland, as well as the three market divisions – Retail & Corporate Banking, Private Banking and Institutional Clients – contributed to the net new money inflow of SFr4.1 billion (2018: SFr1.3 billion).

The group's investment fund business was a significant driver. Client assets under management and loans to clients rose by 11.4 per cent to SFr89.3 billion. In mortgage lending business, the LLB Group reached a volume of SFr11.3 billion, corresponding to an increase of 1.8 per cent.

Operating income rose by 13 per cent to SFr453 million. Fee and commission income posted a gratifying gain of around SFr34 million. The increase was attributable, in addition to higher volumes, to further operative efficiencies and performance fees. In contrast, interest differential business was slightly lower than in the previous year, largely as a result of higher interest expenses with client assets in foreign currencies.

Migrating IT
LLB Group said tha its Austrian business, LLB Österreich, has moved successfully to the Avaloq core banking system, putting it on the same footing as other parts of the LLB empire, it said.

Within the group’s asset management arm, its roster of funds held SFr36.6 billion of assets, up from $30.5 billion a year earlier.