Consolidated management report
LLB Group financial statement
The consolidated financial statement is prepared according to International Financial Reporting Standards (IFRS). For 2011, the net profit attributable to the shareholders of LLB AG stood at CHF 11.0 million (2010: CHF 102.8 million), this corresponds to a year-on-year decrease of 89.3 percent. As a result of lower client activities, net fee and commission income fell by 6.8 percent. Higher interest rate hedging costs led to a loss in net trading income. Furthermore, a specific value adjustment to a Lombard loan was also responsible for the contraction in profit. The Group net profit for 2011 amounted to CHF 15.4 million (2010: CHF 108.5 million).
The cost/income ratio stood at 95.6 percent (2010: 72.7 %). Earnings per share declined to CHF 0.38 (2010: CHF 3.61).
Assets under management
The LLB Group's client acquisition endeavours generated a net new money inflow of CHF 0.6 billion (2010: CHF 2.7 billion). Nevertheless, client assets under management fell by CHF 1.7 billion due to the further strengthening of the Swiss franc and performance-related decreases in assets.
At the end of 2011, the LLB Group managed client assets of CHF 48.1 billion (31 December 2010: CHF 49.8 billion), this represents a decrease of 3.4 percent. Assets in own-managed funds at CHF 3.6 billion remained at the same level as in the previous year. Assets with discretionary mandates fell by 12.1 percent to CHF 7.5 billion. Other assets under management stood at CHF 37.0 billion (31 December 2010: CHF 37.6 billion).
Assets under management as at 31 December 2011
CHF 48.1 billion