Vaduz-based private bank Liechtensteinische Landesbank (LLB) results for 2020 show fall in operating income and net profit, amid the turbulence caused by the Covid-19 pandemic.
Key metrics
Go deeper with GlobalData
The bank posted a net profit of $117.9m (CHF109.8m) in 2020, a decrease of 11% compared with a profit of CHF123.4m in the prior year.
Operating income dipped 5% to CHF430.3m from CHF452.7m over the period.
LLB said that its earnings were hit by the significant drop in US dollar interest rates, the negative interest rate environment in Switzerland and Europe as well as higher loan loss provisions.
Meanwhile, the net interest income increased around 2% year-on-year to CHF154.1m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataNet fee and commission income fell to CHF199.1m from CHF209.2m while net brokerage climbed 21% to CHF42.1m.
The private bank said that the “higher transaction-related earnings compensated for the lower portfolio-related revenues and lower performance-dependent fees”.
LLB’s business volume reached a record CHF92.9bn in 2020.
This was attributed to net new money inflow of CHF3.3bn and an increase of CHF410m with mortgage loans. In 2019, net new money inflow was CHF4.1bn.
Client assets under management at the end of 2020 reached a volume of CHF79.7bn, up 4% from a year ago. Client loans during the year increased 2% to CHF13.2bn.
However, the bank was able its control its operating expenses, which dropped to CHF306.7m in 2020 from CHF311.3m in 2019. This was said to be largely due to a fall in personnel expenses.
LLB vice chairwoman of the board of directors Gabriela Nagel-Jungo said: “In 2020, the corona pandemic confronted both society and the economy with serious challenges. The crisis last year confirmed the correctness of our strategic course.
“With a net profit of CHF109.8m for the business year, we have attained profitable growth and achieved a solid business result despite the difficult basic situation.”
Dividend and Outlook
Despite the fall in figures, LLB board proposed an unchanged dividend of CHF2.20 per share. This corresponds to a dividend yield of 4.2%.
The group said that it will seek to achieve a “solid business result” in 2021 to offer its shareholders a sustainable, attractive dividend.
