Segment reporting by operating segments

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group Executive Board (the chief operating decision maker), which is responsible for allocating resources to the reportable segments and assesses its performance. All operating segments used by the Group meet the definition of a reportable segment under IFRS 8.

In conjunction with our focused growth strategy, we have also aligned our organisational structure even more strongly on our client and market segments.

Accordingly, the LLB Group is divided into the following three segments:

  • Domestic Market: universal banking and private banking business in the home markets of Liechtenstein and Switzerland, that includes investment counselling and asset management, private financial planning and corporate pension provisioning, as well as savings, mortgage lending and commercial financing facilities.
  • International Market: international private banking operations and wealth management services in the markets Austria, Germany, Italy, Eastern Europe, as well as the Near and Middle East.
  • Institutional Market: financial intermediary business, investment funds and asset management.

The Corporate Center comprises the following functions: financial and risk management, trading and securities administration, payment services, personnel management, marketing and communication, legal and compliance matters, corporate development and product management, logistics and IT services.

There were no changes in the reportable segments during the year.

Transactions between the business segments are carried out at arm's length.

The information provided about each segment is based on the internal reports about segment profit or loss, assets and other information, which are regularly reviewed by the Group Executive Board.

The segment information provided to the Group Executive Board for the reportable segments for the year ended 31 December 2011 is as follows:

(XLS:)

in CHF thousands

Domestic Market

Inter-
national
Market

Institu-
tional
Market

Corporate Center

Total Group

Net interest income

110'701

14'333

13'158

51'586

189'778

Net fee and commission income

35'712

91'073

73'673

8'426

208'884

Net trading income

6'542

6'812

9'391

–28'937

–6'192

Net income from financial investments at fair value through profit and loss

0

0

0

449

449

Share of net income from investments in associates

190

0

0

0

190

Other income

0

6'970

561

4'307

11'838

Total operating income

153'145

119'188

96'783

35'831

404'947

Personnel expenses

–53'146

–64'507

–12'590

–50'850

–181'093

General and administrative expenses

–19'782

–23'979

–2'653

–41'657

–88'071

Depreciation and amortisation

–6'463

–9'496

–258

–19'960

–36'177

Value adjustments, provisions and losses

–1'613

–12'732

–65'896

–1'547

–81'788

Services from/to segments

–28'504

–8'124

–15'124

51'752

0

Total operating expenses

–109'508

–118'838

–96'521

–62'262

–387'129

Business division profit before tax

43'637

350

262

–26'431

17'818

Income tax expenses

 

 

 

 

–2'413

Net profit

 

 

 

 

15'405

 

 

 

 

 

 

Additional information

 

 

 

 

 

Divisional assets (in CHF millions)

8'701

2'215

406

9'774

21'096

Divisional liabilities (in CHF millions)

8'408

4'356

4'462

2'228

19'454

Capital expenditure

6'087

3'555

0

29'559

39'201

The segment information provided to the Group Executive Board for the reportable segments for the year ended 31 December 2010 is as follows:

(XLS:)

in CHF thousands

Domestic Market

Inter-
national
Market

Institu-
tional
Market

Corporate Center

Total Group

Net interest income

95'527

11'014

14'286

54'327

175'154

Net fee and commission income

34'010

98'840

80'217

10'964

224'031

Net trading income

7'741

6'723

12'147

898

27'509

Net income from financial investments at fair value through profit and loss

0

0

0

–342

–342

Share of net income from investments in associates

–1'486

0

0

–1'534

–3'020

Other income

0

4'907

0

8'635

13'542

Total operating income

135'792

121'484

106'650

72'948

436'874

Personnel expenses

–50'752

–67'257

–13'976

–46'335

–178'320

General and administrative expenses

–25'239

–22'740

–2'685

–33'967

–84'631

Depreciation and amortisation

–6'403

–9'929

–67

–13'241

–29'640

Value adjustments, provisions and losses

–4'836

–5'874

–15'864

1'776

–24'798

Services from/to segments

–16'892

–3'882

–13'226

34'000

0

Total operating expenses

–104'122

–109'682

–45'818

–57'767

–317'389

Business division profit before tax

31'670

11'802

60'832

15'181

119'485

Income tax expenses

 

 

 

 

–11'005

Net profit

 

 

 

 

108'480

 

 

 

 

 

 

Additional information

 

 

 

 

 

Divisional assets (in CHF millions)

8'404

3'708

595

9'459

22'166

of which shares in associates

5

0

0

0

5

Divisional liabilities (in CHF millions)

8'090

5'670

4'213

2'420

20'393

Capital expenditure

6'479

7'516

0

48'557

62'552

There were no revenues deriving from transactions with a single external customer that amounted to ten percent or more of the Group's revenues.

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