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    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.