Share performance 2011

During the last five years, the LLB bearer share had outperformed its banking peer group. It even remained stable until the end of August 2011, despite volatile financial markets, and performed better than the European sector index. The LLB bearer share oscillated between CHF 70.– and CHF 80.–. Following the publication of the unsatisfactory interim financial result and, ultimately, the information about the value adjustment at the end of September, the bearer share clearly lost in value. It finished 2011 at an exchange rate of CHF 41.50, that is, down 43.2 percent. Comparatively, the Stoxx Europe 600 Banks Index in CHF lost 34.2 percent and the Swiss Performance Index (SPI) 7.7 percent.

In 2011, the total return of the LLB bearer share stood at –40.7 percent (2010: 10.8 %). An investor who had invested CHF 1'000.– at the end of 2001 realised a loss of CHF 213.80 by the end of 2011. However, with a return on equity of –2.4 percent per year the LLB bearer share outperformed the European sector index, which stood at –7.9 percent.

The development of the LLB bearer share reflects the larger world situation. After a positive start by the financial markets in 2011 investors were unsettled by the nuclear catastrophe in Japan, the Arab Spring and the conflicts in the Near East. Although financial markets had recovered by the end of May, weak economic data, an aggravation of the European debt crisis and debates about the debt ceiling in the USA clearly put shares under renewed pressure.

In the second half of 2011, continuing government debt in Greece as well as Italy's and Spain's financial instability caused a further loss of trust. Towards the beginning of October, the international stock markets reached their lowest point, whereby losses in Europe were higher than in the USA and in Asia.

In 2011, many bank shares were hit particularly hard by international events. Furthermore, economic instability, exchange rate problems and greater risks in the loan business weighed on financial institutions. In the wake of the debate about systemic relevance and the «too big to fail» discussion, a number of international banking groups had to review their business structures, raise new capital and revise their earnings targets downwards.

Share performance

 

 

 

 

31.12.2011

31.12.2010

*

Proposal of the Board of Directors to the General Meeting of Shareholders on 4 May 2012.

Number of shares eligible for dividend

28'415'624

28'500'000

Free float (number of shares)

10'715'624

10'800'000

Year's high (22 February 2011/16 April 2010)

80.95

83.70

Year's low (12 December 2011/29 June 2010)

38.50

65.00

Year-end price

41.50

73.00

Performance LLB share (in percent)

–43.2

5.9

Performance SMI (in percent)

–7.8

–1.7

Performance Stoxx Europe 600 Banks in CHF (in percent)

–34.2

–11.6

Average trading volume (number of shares)

8'065

7'505

Market capitalization (in CHF billions)

1.3

2.2

Earnings per LLB share (in CHF)

0.38

3.61

Dividend per LLB share (in CHF)

* 0.30

3.40

Payout ratio (in percent)

55.3

89.0

Dividend yield at year-end price (in percent)

0.7

4.7

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