Intermediaries & Private Banking

Segment results

 

 

 

 

in CHF 1,000

2021

2020

Variance
absolute

Variance
in %

Total net interest income

96,461

101,345

–4,884

–4.8

Total net income from commission 
business and services

133,653

119,353

14,300

12.0

Income from trading activities

31,721

31,808

–87

–0.3

Income from financial instruments

0

0

0

n.a.

Other income

779

32

748

n.a.

Total operating income

262,614

252,538

10,077

4.0

Personnel expenses

68,801

64,303

4,498

7.0

General and administrative expenses

8,003

7,816

187

2.4

Depreciation of property, equipment and intangible assets

6,255

5,584

671

12.0

Credit loss expenses

–1,637

19,416

–21,053

–108.4

Provisions and losses

1,001

393

609

155.1

Services to/from other segments

58,398

55,074

3,324

6.0

Operating expenses

140,820

152,585

–11,764

–7.7

Segment earnings before income tax

121,794

99,953

21,841

21.9

 

 

 

 

 

Additional information

 

 

 

 

Operating expenses excluding depreciation and amortisation, valuation
allowances, provisions and losses / total operating income (in %)

51.5

50.4

 

 

Operating expenses excluding valuation allowances, provisions and losses /
total operating income (in %)

53.9

52.6

 

 

Client assets under management (in CHF billion)

39.6

36.0

 

 

Change in client assets under management
compared to 31.12. prior year (in %)

10.2

1.6

 

 

Net new money (in CHF billion)

0.8

0.8

 

 

Total operating income / average client assets under management (bp) (gross margin)1

69.4

70.7

 

 

Segment result / average client assets under management (bp)1

32.2

28.0

 

 

Cost/income ratio operating income (in %)2

51.6

50.4

1.3

2.5

Headcount (number of employees)

384

356

28.0

7.9

Headcount (expressed as full-time equivalents)

360.0

334.2

25.7

7.7

  1. Annualised, average values.
  2. Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / gross income less other income and income from financial instruments.

Structure

The “Intermediaries & Private Banking” business unit comprises the intermediaries and private banking business at the local and international locations as well as the universal banking and lending business in Liechtenstein.

 

Segment income

In 2021, pre-tax segment income rose by 21.9 per cent compared to the previous year, increasing from CHF 100.0 million to CHF 121.8 million. 

Operating income increased by CHF 10.1 million or 4.0 per cent. This increase is mainly due to the income from commission business and services, which grew by 12.0 per cent. The acquisition of the client business of the private bank Öhman S.A., along with greater client assets and the associated higher recurring operating income, made a positive contribution to commission income. In addition to positive performance, net new money together with targeted client acquisition for discretionary mandates both contributed to this larger asset and earnings base. Compared to the previous year, net interest income from clients decreased by 4.8 per cent and trading activities by 0.3 per cent. US dollar and euro interest payments in client business contributed significantly to this negative movement in interest income.

Operating expenses fell by CHF 11.8 million or 7.7 per cent to CHF 140.8 million. This reduction is primarily due to the allowance for a single position of around CHF 20 million posted in the previous year. Personnel expense and depreciation and amortisation increased by CHF 4.5 million and CHF 0.7 million respectively, due in part to the acquisition of the private banking activities of the private bank Öhman S.A., as well as targeted investments in local and international client business.

At CHF 0.8 billion or 2.3 per cent, net new money continued to develop positively in 2021 despite the challenges posed by COVID-19. This can be attributed to the targeted recruitment of client advisors at our locations. Thanks to intensive market cultivation, a positive inflow of net new money was achieved both in Liechtenstein and at European locations. The acquisition of the client business of the private bank Öhman S.A. resulted in an increase in client assets of CHF 1.0 billion. These assets are not included in the net new money inflow of CHF 0.8 billion, but rather are disclosed separately. Client assets under management as of 31 December 2021 totalled CHF 39.6 billion (31 December 2020: CHF 36.0 billion). In the reporting year, the headcount increased from 334 positions to 360 positions, primarily due to the recruitment of new client advisors and the transfer of employees resulting from the Öhman acquisition.