Segment reporting
As of 1 January 2016, VP Bank amended its organisational structure by creating a new organisational unit “Chief Operating Officer”. An in-depth review of credit and strategy policies of the Group Executive Management resulted a segregation of the front and mid- and back-office units. As part of this process, the front and mid- and back-office units were transferred to “Chief Operating Officer”. The front-office area remained in “Client Business”. As already communicated in the 2015 Annual Report of VP Bank Group (page 17), the management structure consists, from this date on, of the four organisational units “Chief Executive Officer”, “Client Business”, “Chief Financial Officer” and “Chief Operating Officer”.
The organisational unit “Client Business” is divided into two business segments “Client Business Liechtenstein” and “Client Business International”. The three organisational units “Chief Executive Officer”, “Chief Financial Officer & Banking Services” and “Chief Operating Officer” are regrouped together under the business segment “Corporate Center”.
As a result of the segregation of the front- and mid/back-office units, the prior year’s comparatives for segment reporting have been restated accordingly.
Business segment reporting 2016
in CHF 1,000 | Client | Client | Corporate | Total |
|---|---|---|---|---|
| Liechtenstein | International |
|
|
Total net interest income1 | 67,609 | 24,936 | 9,827 | 102,372 |
Total net income from commission | 90,176 | 33,878 | –5,265 | 118,789 |
Income from trading activities1 | 20,267 | 6,565 | 17,664 | 44,496 |
Income from financial instruments | 10 | 396 | 7,240 | 7,646 |
Other income | 0 | 1,078 | –1,149 | –71 |
Total operating income | 178,062 | 66,853 | 28,317 | 273,232 |
Personnel expenses | 33,768 | 39,000 | 62,561 | 135,329 |
General and administrative expenses | 3,292 | 21,544 | 26,839 | 51,675 |
Depreciation and amortisation | 3,682 | 3,336 | 15,393 | 22,411 |
Valuation allowances, provisions and losses | 2,270 | 716 | –218 | 2,768 |
Services to/from other segments | 40,389 | 0 | –40,389 | 0 |
Operating expenses | 83,401 | 64,596 | 64,186 | 212,183 |
Earnings before income tax | 94,661 | 2,257 | –35,869 | 61,049 |
Taxes on income |
|
|
| 3,063 |
Group net income |
|
|
| 57,986 |
|
|
|
|
|
Segment assets (in CHF million) | 4,108 | 3,581 | 4,106 | 11,794 |
Segment liabilities (in CHF million) | 7,160 | 3,048 | 649 | 10,857 |
Client assets under management (in CHF billion)2 | 24.6 | 11.2 | 0.0 | 35.8 |
Net new money (in CHF billion) | –0.2 | 0.2 | 0.0 | 0.0 |
Headcount (number of employees) | 185 | 248 | 371 | 804 |
Headcount (expressed as full-time equivalents) | 174.1 | 233.2 | 331.0 | 738.3 |
- Change of accounting principles (note 1 and principles underlying financial statement reporting)
- Calculation in accordance with Table P of the Guidelines to the Liechtenstein Banking Ordinance issued by the Government of Liechtenstein (FL-BankO).
Business segment reporting 2015
in CHF 1,000 | Client | Client | Corporate | Total |
|---|---|---|---|---|
| Liechtenstein | International |
|
|
Total net interest income1 | 51,366 | 20,672 | 16,328 | 88,366 |
Total net income from commission | 91,847 | 38,853 | –4,330 | 126,370 |
Income from trading activities1 | 23,866 | 9,790 | 8,527 | 42,183 |
Income from financial instruments | 16 | –897 | 139 | –742 |
Other income2 | 0 | 983 | 49,394 | 50,377 |
Total operating income | 167,095 | 69,401 | 70,058 | 306,554 |
Personnel expenses | 32,565 | 36,752 | 52,563 | 121,880 |
General and administrative expenses | 2,952 | 19,071 | 38,212 | 60,235 |
Depreciation and amortisation | 3,672 | 4,455 | 30,126 | 38,253 |
Valuation allowances, provisions and losses | 2,917 | 11,761 | 11,350 | 26,028 |
Services to/from other segments | 47,691 | 0 | –47,691 | 0 |
Operating expenses | 89,797 | 72,039 | 84,560 | 246,396 |
Earnings before income tax5 | 77,298 | –2,638 | –14,502 | 60,158 |
Taxes on income |
|
|
| –3,898 |
Group net income |
|
|
| 64,056 |
|
|
|
|
|
Segment assets (in CHF million) | 4,467 | 3,247 | 4,647 | 12,361 |
Segment liabilities (in CHF million) | 7,792 | 2,928 | 723 | 11,443 |
Client assets under management (in CHF billion)3, 4 | 24.3 | 10.5 | 0.0 | 34.8 |
Net new money (in CHF billion)4 | 5.8 | 0.2 | 0.0 | 6.0 |
Headcount (number of employees) | 171 | 245 | 382 | 798 |
Headcount (expressed as full-time equivalents) | 161.5 | 233.4 | 339.5 | 734.4 |
- Change of accounting principles (note 1 and principles underlying financial statement reporting)
- The non-recurring positive effect of the «bargain purchase» (badwill arising on acquisition) is disclosed in the Corporate Center.
- Calculation in accordance with Table P of the Guidelines to the Liechtenstein Banking Ordinance issued by the Government of Liechtenstein (FL-BankO).
- Acquired client relationships (note 45) of CHF 6.7 billion are included in this position.
- Centralisation of the investment management operations of VP Bank (Switzerland) Ltd in Liechtenstein as of 1 July 2015 (net CHF 2.7 billion).
The recharging of costs and revenues between the business units takes place on the basis of internal transfer prices, actual recharges or on prevailing market conditions. Recharged costs within the segments are subject to an annual review and are amended to reflect new economic conditions, where necessary.