LLB is predicting an interim net profit of around CHF 46 million, down 24 percent year on year, according to a unaudited first half update from the Liechtenstein private bank.
Operating expenses during the period totalled CHF 128 million, up from CHF 116 million for the first half of 2017. Operating income was CHF 184 million, down from CHF 189.7 million year on year.
“The LLB Group is on track with the implementation of its StepUp2020 strategy. In the first half of 2018, both its organic growth and its growth through acquisitions continued,” the statement said. “Announced in February 2018, the LLB Group's acquisition of LB(Swiss) Investment AG was implemented already six weeks later. At the beginning of July 2018, the takeover of Semper Constantia was also formally concluded. The organic development of net new money has been very positive, with an inflow of CHF 1.1 billion in the first half of 2018.”
It added that “the valuation of interest rate swaps on the balance sheet date, the persistently low interest rate environment resulted in lower income from trading. The development of the interest rate and equity markets also resulted in book losses for financial investments as of the balance sheet date.”
As of 30 June 2018, business volume grew from CHF 62.3 billion at the end of 2017 to CHF 62.9 billion. Loans to customers grew from CHF 12.1 billion to CHF 12.4 billion in the first half of 2018, assets under management from CHF 50.3 billion to CHF 50.5 billion.
The bank’s consolidated interim financial report with the detailed information will be published on 23 August 2018.