Segment reporting
VP Bank Group is divided into four business segments: Banking Liechtenstein & Regional Market, Private Banking International, Chief Operating Officer as well as CFO & Corporate Center. Indirect costs for internal recharges between the segments are basically accounted for by the provider of the services as income and by the recipient as expenses, following the originator principle.
Banking Liechtenstein & Regional Market
The Banking Liechtenstein & Regional Market business segment encompasses the universal-banking business in Liechtenstein, the home market, and in Switzerland as well as the international private-banking, intermediaries and fund-solutions businesses conducted in Liechtenstein. Those entities of Verwaltungs- und Privat-Bank Aktiengesellschaft having direct contact with clients, IFOS Internationale Fonds Service Aktiengesellschaft and VPB Finance S.A. are allocated to this business segment.
Private Banking International
The Private Banking International business segment comprises the private-banking business in international locations. VP Bank (Schweiz) AG, VP Bank (Luxembourg) S.A., VP Bank and Trust Company (BVI) Ltd., VP Bank (Singapore) Ltd. and VP Wealth Management (Hong Kong) Ltd. are allocated to this division. Additionally, the Investment Services Center is allocated to this business segment.
Chief Operating Officer
The business segment Chief Operating Officer is responsible for banking operations. It encompasses the units Group Operations, Group Information Technology as well as Logistics & Security for the entire VP Bank Group. In addition, the Group Trading and Group Business Advancement are allocated to the COO.
CFO & Corporate Center
CFO & Corporate Center encompasses the areas of Group Finance & Risk, Group Legal, Compliance & Tax, Group Human Resources Management and Group Communica- tions & Marketing. Those revenues and expenses having no direct relationship to the operating divisions, as well as variable salary components and consolidation adjust-ments, are reported under the Corporate Center.
Geographic segment reporting
in CHF 1,000 | Liechtenstein | Rest of Europe | Other countries | Total Group |
2012 |
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Total net operating income | 192,157 | 33,310 | 16,933 | 242,400 |
Assets (in CHF million) | 9,116 | 1,303 | 222 | 10,641 |
Investments in property and equipment | 7,087 | 473 | 220 | 7,780 |
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2011 |
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Total net operating income | 175,754 | 32,467 | 16,237 | 224,458 |
Assets (in CHF million) | 8,841 | 1,335 | 575 | 10,751 |
Investments in property and equipment | 11,574 | 596 | 70 | 12,240 |
Segment reporting follows the principle of branch accounting.
Business segment reporting 2012
in CHF 1,000 | Banking | Private | Chief | CFO & | Total |
Total interest income | 32,262 | 20,484 | 0 | 30,720 | 83,466 |
Total income from commission business and services | 82,740 | 33,756 | –3,753 | 2,351 | 115,094 |
Income from trading activities | 10,952 | 8,034 | 2,517 | –356 | 21,147 |
Income from financial investments | 323 | 2,055 | 0 | 17,093 | 19,471 |
Other income | 79 | 2,856 | 0 | 287 | 3,222 |
Total net operating income | 126,356 | 67,185 | –1,236 | 50,095 | 242,400 |
Personnel expenses 1 | 26,745 | 47,516 | 29,755 | 368 | 104,384 |
General and administrative expenses | 3,640 | 18,605 | 10,914 | 15,257 | 48,416 |
Services to/from other segments | 42,112 | 16,097 | –59,728 | 1,519 | 0 |
Operating expenses | 72,497 | 82,218 | –19,059 | 17,144 | 152,800 |
Gross income | 53,859 | –15,033 | 17,823 | 32,951 | 89,600 |
Depreciation and amortisation | 61 | 2,612 | 20,238 | 6,534 | 29,445 |
Valuation allowances, provisions and losses | 6,260 | 4,824 | 0 | –25 | 11,059 |
Income/loss before income tax | 47,538 | –22,469 | –2,415 | 26,442 | 49,096 |
Taxes on income |
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| 1,895 |
Net income |
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| 47,201 |
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Share of net income attributable to minority interests |
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| 54 |
Net income attributable to the shareholders of Verwaltungs- und Privat-Bank AG, Vaduz |
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| 47,147 |
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Segment assets (in CHF million) | 3,137 | 2,972 | 70 | 4,462 | 10,641 |
Segment liabilities (in CHF million) | 6,207 | 2,838 | 0 | 708 | 9,753 |
Investments in property and equipment | 6 | 714 | 5,730 | 1,330 | 7,780 |
Depreciation and amortisation | 61 | 2,612 | 20,238 | 6,534 | 29,445 |
Creation of valuation allowances for credit risks | 9,637 | 4,302 | 0 | 0 | 13,939 |
Release of valuation allowances for credit risks | 3,492 | 4,113 | 0 | 173 | 7,778 |
Headcount (full-time equivalents) | 156.2 | 249.7 | 193.9 | 107.1 | 706.9 |
- All adjustments arising from the conversion of the Treuhand-Personalstiftung from a defined-benefit to defined-contribution scheme flow into the CFO & Corporate Center segment.
The recharging of costs and revenues between the business units is made on the basis of internal prices or at market rates. The transfer prices within the segments are reviewed annually and renegotiated to reflect current economic conditions.
Business segment reporting 2011
in CHF 1,000 | Banking | Private | Chief | CFO & | Total |
Total interest income | 36,627 | 22,017 | 0 | 7,955 | 66,599 |
Total income from commission business and services | 86,908 | 36,864 | –4,190 | 2,343 | 121,925 |
Income from trading activities | 12,687 | 8,845 | 2,346 | 5,489 | 29,367 |
Income from financial investments | –72 | –291 | 0 | 6,275 | 5,912 |
Other income | 173 | 430 | 0 | 52 | 655 |
Total net operating income | 136,323 | 67,865 | –1,844 | 22,114 | 224,458 |
Personnel expenses 1 | 26,416 | 43,946 | 30,698 | 24,887 | 125,947 |
General and administrative expenses | 3,704 | 17,295 | 13,944 | 17,928 | 52,871 |
Services to/from other segments | 47,260 | 13,382 | –65,290 | 4,648 | 0 |
Operating expenses | 77,380 | 74,623 | –20,648 | 47,463 | 178,818 |
Gross income | 58,943 | –6,758 | 18,804 | –25,349 | 45,640 |
Depreciation and amortisation | 289 | 3,222 | 23,797 | 6,328 | 33,636 |
Valuation allowances, provisions and losses | 5,560 | 3,124 | 0 | –2,915 | 5,769 |
Income/loss before income tax | 53,094 | –13,104 | –4,993 | –28,762 | 6,235 |
Taxes on income |
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| 973 |
Net income |
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| 5,262 |
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Share of net income attributable to minority interests |
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| 2,058 |
Net income attributable to the shareholders of Verwaltungs- und Privat-Bank AG, Vaduz |
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| 3,204 |
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Segment assets (in CHF million) | 3,235 | 2,972 | 93 | 4,451 | 10,751 |
Segment liabilities (in CHF million) | 6,638 | 2,831 | 160 | 281 | 9,910 |
Investments in property and equipment | 65 | 1,008 | 10,262 | 905 | 12,240 |
Depreciation and amortisation | 289 | 3,210 | 23,797 | 6,340 | 33,636 |
Creation of valuation allowances for credit risks | 3,853 | 4,755 | 105 | 0 | 8,713 |
Release of valuation allowances for credit risks | 2,423 | 1,821 | 0 | 2,967 | 7,211 |
Headcount (full-time equivalents) | 165.3 | 255.5 | 207.8 | 109.2 | 737.8 |
The recharging of costs and revenues between the business units is made on the basis of internal prices or at market rates. The transfer prices within the segments are reviewed annually and renegotiated to reflect current economic conditions.
A new organisational structure was introduced in VP Bank as of 1 January 2012. Segment reporting was restated retroactively.