Annual Report 2011 - Liechtensteinische Landesbank

Transcription

LLB_GB2011_en:LLB GB 2011
20.03.2012
16:30 Uhr
Seite 1
150th
Annual Report
2011
ar2011.llb.li
20.03.2012
16:30 Uhr
Seite 2
20.03.2012
16:30 Uhr
Seite 3
Information for shareholders
Key figures
Information for shareholders
↦
LLB bearer share
Security number
3019524
ISIN
LI0030195247
Listing
SIX Swiss Exchange
Ticker symbols
Bloomberg
LLB SW
Reuters
LLB.S
Telekurs
LLB
Capital structure
31. 12. 2011
Share capital (in CHF thousands)
31. 12. 2010
31. 12. 2009
+ / – % to
31. 12. 2010
0.0
154'000
154'000
154'000
Total shares issued
30'800'000
30'800'000
30'800'000
0.0
Total shares outstanding, eligible for dividend
28'415'624
28'500'000
28'479'617
–0.3
Weighted average number of shares
28'451'977
28'491'213
28'475'343
–0.1
31. 12. 2011
31. 12. 2010
31. 12. 2009
+ / – % to
31. 12. 2010
Information per bearer share
Par value (in CHF)
Share price (in CHF)
Basic earnings (in CHF)
Price / earnings ratio
6.12
11.27
* 0.30
3.40
3.40
130
120
110
100
90
80
70
60
50
40
30
2010
Swiss Market Index (SMI)
–89.5
3.61
indexed from 1 January 2007
2009
0.0
–43.2
20.23
Comparison of LLB bearer share with the Swiss Market Index (SMI)
2008
5.00
68.95
0.38
* Proposal of the Board of Directors to the General Meeting of Shareholders on 4 May 2012.
2007
5.00
73.00
109.21
Dividend (in CHF)
Liechtensteinische Landesbank (LLB)
5.00
41.50
2011
–91.2
4
5
Key figures
Consolidated income statement
in CHF millions
+/– %
to 2010
2011
2010
2009
Operating income
404.9
436.9
529.3
–7.3
Operating expenses
387.1
317.4
333.6
22.0
11.0
102.8
174.2
–89.3
95.6
72.7
63.0
0.7
6.2
10.8
31. 12. 2011
31. 12. 2010
31. 12. 2009
Income statement
7
Net profit attributable to the shareholders of LLB AG
Performance figures
Cost / income ratio (in percent)
Return on equity attributable to the shareholders
of LLB AG (in percent)
Consolidated balance sheet and capital management
in CHF millions
+ / – % to
31. 12. 2010
Balance sheet
Equity attributable to the shareholders of LLB AG
Total assets
1'541
1'673
1'666
–7.9
21'096
22'166
22'910
–4.8
Capital ratio
Tier 1 ratio (in percent)
13.9
13.9
13.7
9'464
9'734
9'858
–2.8
31. 12. 2011
31. 12. 2010
31. 12. 2009
+ / – % to
31. 12. 2010
48'099
49'777
49'497
–3.4
1'123
1'087
1'054
3.3
Risk-weighted assets
Others
Assets under management (in CHF millions)
Employees (full-time equivalents, in positions)
For ease of reading, the Liechtensteinische Landesbank Aktiengesellschaft is referred to variously in the following
as the Liechtensteinische Landesbank AG, Liechtensteinische Landesbank, LLB AG, LLB as well as LLB parent bank.
Liechtensteinische Landesbank (Switzerland) Ltd. is also referred to as LLB (Switzerland) Ltd. and LLB Switzerland.
Liechtensteinische Landesbank (Österreich) AG is also referred to as LLB (Österreich) AG and LLB Österreich.
Bank Linth LLB AG is also referred to in this report as Bank Linth.
This Annual Report is published in German and English. The German version is authoritative.
The 2011 Annual Report is also available in an interactive online version:
German: http://gb2011.llb.li
English: http://ar2011.llb.li
Information for shareholders ↤ i Key figures ↤
Letter to shareholders 7 i Organizational structure of the LLB Group
on 16 January 2012 16 i Strategy and organisation 18 i Outlook 27
1
Review of operations
Segment reporting Clients and markets 31 i Domestic Market 36
International Market 39 i Institutional Market 42 i Corporate Center 45
Stakeholders report LLB bearer share 47 i Brand and sponsoring 49
Employees 52 i Regulatory framework and developments 55 i Social and
ecological sustainability 57 i Corporate governance 60
2
Consolidated financial statement of the LLB Group
Report of the Group auditors 77 i Consolidated management report 78
Consolidated income statement 80 i Consolidated statement of comprehensive
income 81 i Consolidated balance sheet 82 i Consolidated statement of
changes in equity 83 i Consolidated statement of cash flows 84 i Notes to the
consolidated financial statement 86
3
Financial statement of LLB AG, Vaduz
Report of the independent auditors 145 i Management report 146 i Balance
sheet 147 i Income statement 149 i Distribution of balance sheet profit 150
Notes to the financial statement 151
2
3
Contents
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2
3
Dr. Hans-Werner Gassner, Chairman of the Board of Directors
20.03.2012
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Seite 7
Dear Shareholders
Dear Ladies and Gentlemen
«150 Years of Looking Forward» – in 2011, this slogan stood not only for the trust placed in us
by our clients, shareholders and employees in the past, but it also expressed the responsibility
that we bear for the future. In accordance with this principle, we proactively adapt our company to meet and master the challenges of an uncertain global business environment and the
ongoing structural changes in the banking industry. 2011 made great demands on us. Some
things turned out differently than we had expected, in other respects we moved forward.
For example, we implemented a range of initiatives to enable us to remain competitive
over the long term. The operative start of our new Avaloq banking software on 1 January 2011
enabled us to enhance the quality and efficiency of our IT systems and also provided a firm
foundation for future improvements in business processes. We have introduced Shared Service
Centers to reduce costs by bringing together payment services, trading and securities administration operations at our headquarters in Vaduz and to concentrate our expertise in dedicated competence centres. Furthermore, we have analyzed synergy and savings potentials,
which we intend to exploit effectively from 2012.
We are continuing to implement our growth strategy in a consistent and focused manner.
At LLB Österreich and at our business base in Dubai, we have significantly expanded our capacities to accommodate future growth. Our banks in Switzerland have expanded their branch network. Bank Linth has taken another significant step towards becoming the leading regional bank
in the east of Switzerland.
As you know, 2011 was a difficult year worldwide. The nuclear disaster in Fukushima confronted Japan with enormous challenges, the radical political developments in North Africa
and the Middle East made great demands on the international community. During the second
half of the year, the European debt crisis and the euro's uncertain future weighed heavily on
the financial markets. Historically low interest rates, the volatile stock markets and the strong
Swiss franc caused nervousness not only among investors. These factors once again had an
adverse impact on our business result for the year, with which we cannot be satisfied.
In total, operating income declined year on year by 7.3 percent to CHF 404.9 million.
Thanks to higher volumes, net interest income rose by 8.3 percent to CHF 189.8 million. Net
fee and commission income dropped by 6.8 percent to CHF 208.9 million. Net trading income
stood at minus CHF 6.2 million. Net income from financial investments – measured at fair
value, i. e. market value – amounted to CHF 0.4 million.
In September, we had to announce a specific value adjustment to a Lombard loan amounting
to CHF 49 million. Net profit decreased disproportionately by 85.8 percent to CHF 15.4 million.
The ratio of operating expenses to operating income rose in 2011 to 95.6 percent (2010: 72.7 %).
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In 2011, we maintained a high performance level in the acquisition of new business. Loans to
clients expanded by 4.6 percent to CHF 10.3 billion, slight increases were registered in the volume of corporate and private pension provisions, and net new money inflows again increased
to CHF 0.6 billion (2010: CHF 2.7 billion). Client assets under management, however, decreased
due to the disadvantageous market development by 3.4 percent to CHF 48.1 billion (31 December 2010: CHF 49.8 billion).
Seizing opportunities is one side of our business. But we are also well aware of the importance of equity as a cushion against risk. At CHF 1.6 billion, we have a solid capital base. In the
year under report, the tier 1 ratio stood at 13.9 percent. Even though this ratio is well above
the legal requirements, we shall strive to strengthen our equity even further. This is another
reason – besides our unsatisfactory business result – why the Board of Directors will propose
to the General Meeting of Shareholders on 4 May 2012 that the dividend per LLB bearer share
be substantially reduced from CHF 3.40 in the previous years to CHF 0.30.
Nevertheless, we hope that after reading this annual report you will reach the same conclusion that we have, namely that the LLB Group possesses great potential success factors including
our loyal clients, good products, ongoing innovations, a modern infrastructure and skilled, dedicated employees.
The LLB Group is firmly established in its markets. We are confident about business prospects in 2012 and we are carefully monitoring further developments in the financial services industry. In 2012, the markets will continue to be volatile and uncertainty will persist. We look
back on a very eventful 150th anniversary year. The achievements of the Liechtensteinische
Landesbank would not have been possible without our clients, who place their trust in us, without our shareholders, who stay loyal to us, and without our staff, who give their best every
day. Our sincere thanks go to all of them.
Roland Matt
Chief Executive Officer
Dr. Hans-Werner Gassner
Chairman of the Board of Directors
20.03.2012
16:30 Uhr
Seite 9
« For many years
we have stood for safety
and stability» Interview with Dr. Hans-Werner Gassner and Roland Matt
Interview with
Dr. Hans-Werner Gassner and Roland Matt
↦
In 2011, the financial markets were rocked by turbulence. The systemic risks in the
euro area and the structural problems in the US economy caused the world to hold its
breath. From the viewpoint of the LLB Group, how do you assess this difficult year?
Hans-Werner Gassner: We were able to send out a signal of stability from Liechtenstein.
With over 1'000 employees we celebrated the 150th anniversary of our company. On 5 December 1861, the Liechtensteinische Landesbank was founded as the «Zins- und Credit-Landesanstalt im souverainen Fürstenthume Liechtenstein», which was an important milestone in the
development of the Principality at that time. Our anniversary celebrations in 2011, such as the
Family Day, to which the entire population was invited, will certainly remain as warm memories.
And the same applies to our projects with Liechtenstein's eleven municipalities. For the next
generations we have set up the Future Foundation. Its aim is to foster social interaction and
support the realization of environmental projects.
Roland Matt: Even though we were celebrating a proud anniversary, we also had to deal
with economic turbulence and its impact on our business activities. Interest rates remained at
historically low levels and volatility persisted on the stock markets. The debate about the euro's
future and the marked economic downturn caused uncertainty among investors. At the same
time cost pressures intensified. All of this had an adverse impact on our financial statement. We
are not satisfied with our business result. For us it was particularly painful that we had to announce a large value adjustment to a Lombard loan in September.
What conclusions have you drawn from this case and what will be the consequences?
Hans-Werner Gassner: On the one hand, on behalf of the Board of Directors, our external
auditors, PricewaterhouseCoopers, have investigated the granting and the monitoring of this
Lombard loan. On the other, they also analyzed the current organisation of our lending business
to identify potential improvement possibilities. The corresponding recommendations are being
implemented. As a first important measure, the role of the Chief Financial Officer has been
enhanced. In taking this step, the Board of Directors of the LLB Group has substantially brought
forward the realization of already planned changes. The new processes will enable us to even
better fulfil the requirements made by our growth and the increasingly international nature of
our clients. We must ensure that such an incident cannot happen again.
I
t
T
w
w
t
w
t
t
P
t
How do you assess the LLB Group's performance in 2011?
Roland Matt: Our 2011 business result was unsatisfactory. Low interest rates, the strong
Swiss franc and the uncertainty among investors weighed heavily on interest differential and
commission business, as well as earnings from financial investments. On the other hand, ever
increasing regulatory demands and adjustments cause higher costs. Our margins are under
pressure – and will remain so. For us this means that we must retain our growth targets in order
to come close to earlier profitability levels by attaining larger volumes.
You are proposing to reduce the dividend from CHF 3.40 last year to CHF 0.30 this year.
How are you going to explain this step to shareholders?
Hans-Werner Gassner: We have stood for safety and stability for many years; our clients
place their trust in us for this reason. We want to underline these values by further increasing our
equity capital resources. It is therefore also in the interest of our shareholders that we retain
earnings for this purpose. A solid equity capital base represents a cornerstone of entrepreneurial
practice and acts as a guarantee for the independence of a company. To enable us to invest
in the future development of the LLB Group, we are utilizing disposable earnings to specifically
strengthen our equity capital.
w
t
T
W
W
t
t
s.
s
The banking industry is undergoing fundamental change. Where do you see the
opportunities and the risks?
Hans-Werner Gassner: A first prerequisite is to accept the rapid pace of these structural
changes. The greatest risk for us would be to do nothing and hope that the golden age of the
1990s and the early 2000s will return. The critical operational size which banks need, if they
want to remain competitive, will increase in comparison with today. In the near future, we will
see various new forms of cooperation and there will be an increasing number of bank mergers.
In a word, banking services are becoming «industrialized». Opportunities will arise for whoever
has the foresight to take the necessary steps promptly.
Roland Matt: The LLB Group has already initiated appropriate measures. On the one hand,
we are cooperating with the VP Bank in the area of document printing and dispatch as well as
the purchasing of information services. In 2012, we are bringing together our network of ATMs
with that of the Liechtenstein Post. In another move, we have set up Shared Service Centers
to enhance quality and efficiency in the areas of payment services, trading and securities administration. Other synergy potentials have also been identified and we aim to take advantage of
them in a programme with the designation «move!» in order to cut costs further.
Private banking, a core competence of the LLB Group, is to be realigned. What prospects
do you see for it?
Roland Matt: We have a solid basis in private and corporate client business, which we want
to further consolidate and expand. We see great potential in private banking and in institutional
business. This means that we shall target our strategy on our home markets of Liechtenstein and
Switzerland as well as on the growth markets of Russia, Eastern Europe and the Near and Middle
East. To exploit these markets, we are enhancing our specialist knowledge as regards their specific taxation systems and practices, and we are developing specific products for these countries.
Hans-Werner Gassner: Our international clients are very interested in our traditional values
and professional service. Our subsidiaries that focus on international wealth management are
developing well. We are very positive about our business prospects, even if this is not yet reflected
in the net new money inflows and client assets under management. It should be said here that
we have commenced a streamlining process. In view of the many new regulatory standards and
the pressure on margins, we are systematically reviewing our client portfolios. These analyses
could induce us to terminate certain client relationships if they no longer conform to our criteria.
This streamlining process will be a priority for us in 2012.
l
What targets have you set for 2012?
Roland Matt: There is a large degree of uncertainty. We must expect low interest rates
and volatile stock markets to continue. Consequently, it is extremely difficult to make forecasts.
We are concentrating on those factors which we can influence. We believe that with our initiatives to improve efficiency we shall already have a sustained impact on costs in 2012. Furthermore, we plan to align the organizational structure of the LLB Group even more closely with
our clients and markets. However, we will not yet attain our cost and capital efficiency targets in
the coming year.
10
11
In 2010, you announced investment programmes totalling over CHF 100 million,
spread over five years. How is this progressing?
Roland Matt: According to plan. We want to ensure that in 150 years' time we are still a
leading universal bank with Liechtenstein roots. For this reason – and precisely because of the
ongoing structural changes – we are sticking to our growth strategy and its focus on our target
markets. We regard this strategy as a guarantee that in the 21st century we have the optimum
operational size and the necessary expertise to provide our clients with first-class services.
Consequently, we made major investments in 2011 in our infrastructure, our IT systems and
our staff. The projects are going forward according to plan. With the operative start-up of
the Avaloq banking software, we have put in place the foundation for our business development
over the coming years. The new construction of our bank branch in Eschen with its «green»
processing centre is on schedule. Furthermore, we are investing in our growth markets. We have
expanded our bank in Vienna and our representative office in Dubai. In Geneva, we have set up
a new branch, which we will use as a base to service our international clients. Within the scope
of its «Crescendo» growth initiative, our Bank Linth subsidiary opened new branches in Erlenbach and Winterthur in 2011. Through this subsidiary, we are well on the way to becoming one
of the leading regional banks in the east of Switzerland.
B
Roland Matt, Chief Executive Officer
20.03.2012
16:30 Uhr
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Board of Directors
2
1
4
3
5
1 Roland Oehri, Fiduciary 2 Markus Büchel, Human resources manager
3 Dr. Felix R. Ehrat, Attorney-at-law / Group General Counsel 4 lic. oec. publ. Markus Foser, Business consultant
4 Ingrid Hassler-Gerner, Asset manager 5 Konrad Schnyder, Entrepreneur
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12
13
Dr. Hans-Werner Gassner, Business consultant and certified public accountant
20.03.2012
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Seite 14
Board of Management
1
2
3
1 Dr. Josef Fehr, Chairman of the Board of Management until 15 January 2012
2 lic. iur. Urs Müller, Domestic Market and Institutional Market
3 Dr. Kurt Mäder, Corporate Service Center
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Organizational structure of the LLB Group
on 16 January 2012
Domestic Market (FL and CH)
Organizational structure
↦
Domestic
Clients
Bank Linth
LLB AG
lic. oec. publ.
Eduard Zorc
Prof. Dr.
Heinz Knecht
Institutional Market
Group Board
of Directors *
Group Executive
Board **
CEO
Dr. Hans-Werner
Gassner
Roland Matt
Group Executive
Board **
Domestic &
Institutional
Markets
lic. iur. Urs Müller
Institutional
Clients
LLB Asset
Management
LLB Fonds
leitung AG
Mag. iur.
Natalie Flatz
Mag. Markus
Wiedemann
Roland
Bargetze
International Market
Group
Internal Audit
Patrick
Helg
Group
Corporate
Communications
Dr. Cyrill Sele
Special
Clients
Group Executive
Board **
International
Market
Norman Oehri
ad interim
International
Clients
lic. oec.
et rer. publ.
P. Daniel Bischof
LLB
(Switzerland)
Ltd.
LLB
(Österreic
Mag. Jörg Klar
Peter F. Ma
Roland Matt
Corporate Service Center
* Group Board of Directors
◆ Dr. Hans-Werner Gassner,
Chairman
Group Executive
Board **
Corporate
Service Center
Dr. Kurt Mäder
Group
Operations &
Services
Stephan
Schneider
Group Executive
Board **
CFO
Group
Finance & Risk
◆ lic. oec. publ. Markus Foser,
Vice Chairman
◆ Markus Büchel
◆ Dr. Felix R. Ehrat
◆ Ingrid Hassler-Gerner
◆ Roland Oehri
◆ Konrad Schnyder
** Group Executive Board
◆ Roland Matt, Chief Executive Officer
◆ Dr. Kurt Mäder
◆ lic. iur. Urs Müller
ad interim
Christoph M.
Reich
Christoph M.
Reich
◆ Christoph M. Reich
Dr. Josef Fehr stepped down as Chairman of the Group Executive
Board of Directors of LLB AG
Board and the Board of Management of the Liechtensteinische
Board of Management of LLB AG
Landesbank, for personal reasons and at his own request, as of
16 January 2012. The Board of Management appointed his former
Business unit of LLB AG
deputy Roland Matt as Chief Executive Officer and Christoph M.
Group staff department of LLB AG
Reich as Chief Financial Officer; the latter was also elected
LLB Group company
a new member of the Group Executive Board and the Board of
Management. The new Group Executive Board and the Board of
Management now consists of five members. The recruitment
process for the vacant position of the Head of the International
Market Business Division has commenced.
Group
Corporate
Development
Michael
Meissner
Group
Human
Resources
Dr. Bernd
Moosman
on 16 January 2012
CH)
Liechtensteinische Landesbank
(Switzerland) Ltd. (100 %)
Linth
G
Board of Directors
Dr.
Knecht
LLB Fund Services AG (100 %)
Board of Directors
◆ lic. iur. Urs Müller, Chairman
◆ Roland Matt, Chairman
◆ Roland Matt, Vice Chairman
◆ Dr. Kurt Mäder, Vice Chairman
◆ Natalie Flatz
◆ Dr. Josef Fehr
Board of Management
Board of Management
◆ lic. oec. Ernst Risch,
Managing Director
◆ Jörg Klar, Chairman
◆ Lucas Bruggeman
◆ Marc Parmentier
◆ Dieter Zürcher
sset
gement
Markus
mann
LLB Fondsleitung AG
Roland
Bargetze
LLB Fondsleitung AG (100 %)
Board of Directors
LLB Fund
Services AG
(Österreich) AG (100 %)
lic. oec.
Ernst Risch
Board of Directors
◆ Roland Matt, Chairman
◆ Dr. Josef Fehr, Vice Chairman
◆ Natalie Flatz
Board of Management
◆ Roland Bargetze,
Managing Director
◆ Peter Ospelt
◆ Norman Oehri
Board of Management
◆ Peter F. Mayer, Chairman
◆ Dr. Robert Löw
Jura Trust AG (100 %)
Board of Directors
◆ Norman Oehri, Chairman
zerland)
örg Klar
LLB
(Österreich) AG
Peter F. Mayer
Jura Trust AG
Michael A.
Steiger
swisspartners
Investment
Network AG
Markus Wintsch
Bank Linth LLB AG (74.2 %)
◆ Dr. Josef Fehr
Board of Directors
◆ lic. oec. Karlheinz Heeb
◆ Dr. Georges Knobel, Chairman
◆ Angelika Nigg-Vogt
◆ lic. iur. Urs Müller, Vice Chairman
◆ Dr. Peter Prast
◆ Hans Fäh
Board of Management
◆ Dr. Josef Fehr
◆ Michael A. Steiger, Chairman
◆ Dr. Kurt Mäder
◆ lic. iur. Martin Gstoehl
◆ Roland Matt
◆ lic. iur. Markus Hutter
Board of Management
p
rate
opment
el
ner
Group
Human
Resources
Dr. Bernd
Moosmann
Group
Legal &
Compliance
Dr. iur. Graziella
Marok-Wachter
Group
Information
Technology
Stephan
Schmidle
◆ Prof. Dr. Heinz Knecht, CEO
swisspartners Investment
◆ Kurt Rosenberger
Network AG (67.4 %)
◆ Dr. David B. Sarasin
◆ Luc Schuurmans
Board of Directors
◆ Martin P. Egli, Chairman
◆ Dr. Josef Fehr
LLB Asset
◆ Roland Matt
Management AG (100 %)
◆ Rainer H. Moser
Board of Directors
Board of Management
◆ Markus Wintsch, CEO
◆ Dr. Josef Fehr
◆ Dr. Kristian Bader
Board of Management
◆ Mag. Markus Wiedemann,
Managing Director
◆ Christ Johann Collenberg
◆ Beatrice Kern
◆ Dr. Christian Rockstroh
◆ Christian Zogg
Dr. Josef Fehr will step down from the Boards of Directors of the Group companies
during the Annual General Meetings. The current composition of the Boards of
Directors can be viewed in the Internet at www.llb.li.
16
17
Group companies
14
15
S
T
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n
b
p
o
a
p
i
Roland Matt, Chief Executive Officer since 16 January 2012, International Market ad interim
14
15
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Strategy and organisation
The LLB Group is a reliable partner for banking
transactions – nationally, regionally and internationally. We aim to be the leading universal
bank with roots in Liechtenstein and to grow
profitably. Our business structure is based on
our well-proven three-pillar strategy, which we
are constantly advancing. The values we are
proud to represent are security, fairness, stability and closeness to clients.
Business structure
As a leading universal and commercial bank widely represented
in the region of Liechtenstein and eastern Switzerland the LLB
Group offers comprehensive banking services. These services
comprise the private and corporate client business, the private
and corporate pension provisioning business as well as private
banking, asset management, fund services and trust services.
Our three-pillar strategy pursues growth in Liechtenstein
and Switzerland as well as the development of new markets.
In 2011, the Board of Directors of the LLB Group endorsed this
strategy. Several business areas are central to securing competitiveness, particularly in view of the structural changes the
banking sector as well as the financial centres Liechtenstein
and Switzerland are undergoing. The LLB Group is thereby
focusing on implementing ongoing strategic initiatives and is
reducing the speed at which new growth projects are launched.
The domestic markets provide a strong basis for internationalization.
Strategic guidelines
e
s
ee r th
oy fo
pl ok
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nd
sa
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oy
pl
em
st
be
ed
.
ur
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ca
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e
ar ubl
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si
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lit
ei
th
g
cr
bi
si
on
tin
sp
re
ea
e
m
su
rf
in
as
an
c
d
an
Values
Fairness, Security, Stability,
Customer closeness
e
ur
c
th
lie
nt
r
fo
.
ty
i
un
m
m
co
W
Cl e a
ie ss
nt ist
s
o
Th
e
◆ Market organisation
◆ Active corporate management
◆ Transparent corporate
governance
◆ Conservative risk policy
lf
ca
pi
on
ar
e
ea ho
rn lde
a
r
pr s
em
iu
m
Sh
e
.
es
iti
un
rt
po
op
W
Setting up
of new
markets
ith
w
Corporate principles
◆ Broadly diversified
business model
◆ Process efficiency
◆ High-quality products
and services
◆ Competitive costs
W
rim
Expansion
of activities in
Switzerland
em
th
Strategy
Consolidation
of home market
Liechtenstein
ia
ta
lc
e
id
ov
pr
os
ts
.
Vision
Leading universal
bank with roots
in Liechtenstein
20.03.2012
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Seite 19
In the Liechtenstein home market, LLB is represented across
the whole country: at our own five business locations and, as
of 2012, with an extended ATM network at 20 locations. In
Switzerland, the Group, in cooperation with Bank Linth, has
over 25 business locations in the cantons of St. Gallen, Glarus,
Schwyz and Zurich. Under the umbrella of LLB Switzerland
we have further branches in Zurich, Lugano and Geneva and a
presence in three language regions. Through LLB Österreich
in Vienna we have access to Austria, Eastern Europe as well as
Russia and through representative offices in Abu Dhabi and
Dubai to the Near and Middle East.
In 2011, we earned the majority of our total income, i. e.
51.6 percent, in net fee and commission income; 46.9 percent
was attributable to net interest income. The LLB Group is organised in three operative business divisions: Domestic Market,
International Market and Institutional Market. Via our Corporate Center we coordinate the implementation of the strategy
within the Group and support business divisions and Group
companies in their activities.
Operating income by business divisions
2008 – 2011, in percent
41.5
2011
2010
37.3
2009
36.8
32.3
33.4
10
20
30
29.3
36.2
34.1
2008
26.2
27.0
35.5
40
50
60
70
30.4
80
90
100
Domestic Market
Business divisions
Domestic Market
The Domestic Market Business Division comprises the universal bank and asset management business in our home markets
of Liechtenstein and Switzerland. In 2011, this segment earned
41.5 percent of the operating income (2010: 37.3 %; 2009:
36.8 %) and managed 30.4 percent of client assets (31 December
2010: 28.6 %; 31 December 2009: 28.3 %).
Our aim is to continually grow faster than the economy in
our home markets. We will therefore expedite our activities in
the private and corporate client business as well as the private
banking sector. Furthermore, we are striving to become one
of the leading providers in the private and corporate pension
provisioning business.
Strategic priorities:
◆ market penetration and safeguarding of the advisory
services quality
◆ market share gains in the private banking sector
◆ expansion of the private and corporate pension
provisioning business
◆ expansion of our branch network
◆ consolidation of the leading position in the mortgage
loan business
Implementation of partial plans in 2011:
◆ «Crescendo» growth initiative of Bank Linth: modernisation
of the branch network and opening of the new branch offices
in Erlenbach and Winterthur
◆ mortgage loan business: new records
◆ fund business: product innovations
◆ onshore private banking: growth, new customer
segmentation
◆ advisory services quality: investments in the areas of credit
management, financial planning and pension provisioning
◆ cooperation: merger of the LLB and the Liechtenstein Post
ATM networks
Challenges in 2011:
◆ volatile stock markets, low interest rates, currency
turbulence
◆ passive investment behaviour of customers in view
of the financial crisis and the crisis of confidence
◆ intense competition in the mortgage loan business
The International Market Business Division is responsible for
the international wealth management business of the LLB
Group. In 2011, it earned 32.3 percent of the operating income
(2010: 33.4 %; 2009: 36.2 %) and managed 29.7 percent of client
assets (31 December 2010: 31.0 %; 31 December 2009: 33.4 %).
In the area of international wealth management we are
focusing on the clearly defined core markets Germany, Austria
and Italy as well as on the growth markets. In cooperation
with our bank in Vienna, we are intensifying onshore private
banking in Austria as well as cross-border private banking in
Eastern Europe and Russia. From our representative offices
in Abu Dhabi and Dubai we concentrate on our customers in
the Near and Middle East.
◆ expanding our advisory team and improving their
advisory competence
◆ intensifying our presence in growth markets
◆ focusing on clearly defined markets and customer relationships
◆ investing in cross-border banking: expanding resources,
know-how and range of services
◆ cross-border private banking: implementation
of the cross-border regulation
◆ Near and Middle East: enlargement of our advisory teams
◆ Eastern Europe and Russia: growth
◆ LLB (Österreich) AG: expansion
◆ growth markets: development of new country
specific products
◆ client services: «Active Advisory», introduction of an active
advisory approach
◆ client portfolios: increased focus on clearly defined markets
Challenges in 2011:
turbulence
◆ increasing regulation of cross-border private banking
◆ shortage of qualified staff
◆ strong competition and margin pressure
18
19
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The Institutional Market Business Division comprises the classic
intermediary and fund business as well as the asset management business of the LLB Group. In 2011, it earned 26.2 percent
of the operating income (2010: 29.3 %; 2009: 27.0 %) and managed 39.9 percent of client assets (31 December 2010: 40.4 %;
31 December 2009: 38.3 %).
In this important growth segment, the LLB Group has set
itself the goal of consolidating its leading position in Liechtenstein. We are therefore continuously enlarging our range of
services. With the introduction of the UCITS IV EU directive we
are able to be more internationally active.
◆ expansion of both the private labelling services
and investment opportunities for fund promoters
◆ optimisation of processes
◆ increase in market performance
◆ development of new products and processes for
complex financial instruments
◆ above-average performance in fund products
and in the asset management segment
◆ rise in fund management, fund administration
and custodian bank mandates
◆ launch of new inflation-protected funds and products
for the growth markets
◆ introduction of the Key Investor Information Document
(KIID) for mutual funds; automatised generation of
fact sheets
◆ additional special mandates
Challenges in 2011:
turbulence
◆ increasing regulation
◆ market consolidation in the trust services business
and in the business with external asset managers
◆ shortage of qualified staff
Corporate Center
The Corporate Center coordinates the implementation of
strategy within the LLB Group and supports the activities of
the market-oriented Group companies and business divisions.
The aim is to optimise bank processes and the Group-wide
organisation of structures and processes. Moreover, the Corporate Center ensures the adherence to rules and regulations.
The focus is thereby on striking the right balance between profitability and security as well as on benefits for our customers.
Our five priorities in 2011:
The Avaloq standard banking software has been in operation
at LLB headquarters and LLB Switzerland since 1 January 2011.
Bank Linth has been working with the latest version since as
early as November 2010. Its use in the IT Service Center facilitates operative processes. Avaloq allows us to automatise key
processes, from which we expect a productivity boost. The commitment of our staff ensured that implementing the change
to Avaloq went smoothly for the most part. Now all banks within the LLB Group – with the exception of LLB Österreich – have
the same IT environment. The basis has thus been created for
exploiting synergies and potentials. As a result, we are even
better equipped for further growth. The IT platform provides
multi-client capability und allows for processing in several
languages and various currencies.
In parallel with our introduction of Avaloq we mapped out,
analysed and unified the banking processes in detail. The result
of the project «Business Process Management» is a map of all
processes within our Group. At the LLB parent bank, at Bank
Linth and at LLB Switzerland, respectively, a project manager is
responsible for coordinating, honing and expanding processes.
The optimisation of these processes is now synchronised within
the LLB Group; the basis for increasing efficiency has been laid.
Under these conditions, it is possible to establish Shared
Service Centers. Payment services, securities administration
and trading services for Liechtensteinische Landesbank AG and
LLB (Switzerland) Ltd. have been centrally processed in Vaduz
since 1 January 2011. By mid-2012, Bank Linth will have joined
the competence centres in Vaduz. We expect to achieve synergy effects and annual savings of approximately CHF 3 million.
Due to this process optimisation, 27 positions will be shed
Group-wide.
The goal of the LLB Group is to increase efficiency, to
generate new activity in the area of innovation and, as a result,
to secure long-term competitiveness. With the «move!» programme we have explored various possibilities. On the basis of
this analysis we will realise projects in 2012 in order to increase
efficiency and to make savings. At the same time, we want to
adapt to the continuously changing regulatory framework.
In the coming business year, we will probably define three processes that revolve around the following projects: final withholding tax, the US tax law FATCA and the bank-internal control
system (IKS).
Furthermore, in order to reduce costs the Liechtensteinische Landesbank has entered into cooperation with the
VP Bank, Vaduz, in individual key processes. Both banks have
founded a joint purchasing company for information services,
Data Info Services AG, and cooperate in the areas of document
printing and dispatch. At the end of 2012, the data processing centres of the LLB Group and the VP Bank Group will go into operation in the new LLB branch office in Eschen. This will
mean synergies in the areas of security technology and energy
efficiency. At the beginning of 2012, we entered into closer
cooperation with the Liechtenstein Post and integrated the
Post ATMs into the LLB ATM network.
Implementation of the growth strategy
In 2004, we defined our three-pillar strategy: consolidation
of the Liechtenstein home market, expansion of activities in
Switzerland and development of new markets. The LLB Group
has managed to continuously strengthen its position by consistently implementing this strategy. In 2012, we plan to be
even more consistent when aligning the LLB Group's organizational structure with clients and markets.
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20
21
Milestones of the LLB strategy
Consolidation of
Liechtenstein home market
2005
◆ Setting up of LLB Liechtenstein
Pension Foundation
◆ Acquisition of majority share-
Expanded activities in Switzerland
◆ Increase of equity stake in swisspartners Investment Network AG
Development of new markets
◆ Opening of the representative office in Abu Dhabi
to 51 percent
holding in Jura Trust AG
◆ Opening of the bank branch in
2006
Lugano
◆ Majority shareholding in Bank
2007
Linth LLB AG
◆ Opening of the Bank Linth
2008
branch in Meilen
◆ Opening of the representative
office in Dubai
◆ Reorganisation of Group Executive Management with four areas of responsibility:
2009
Domestic Market, International Market, Institutional Market, Corporate Service Center
◆ Creation of new «Financial
2010
◆ Takeover of management func-
Planning and Pension Provision-
tion for the ALVOSO LLB pension
ing» Unit
fund
◆ Launching of «TRIA» third-pillar
◆ Opening of LLB (Österreich) AG
in Vienna
◆ «Crescendo» growth initiative and ◆ Enlargement of advisory teams
pension provisioning products
re-branding of the «Bank Linth»
(death risk, disability)
brand
in Vaduz, Zurich and Vienna
for the Eastern European markets
◆ Competence development in
◆ Commencement of the new
the areas of international
branch construction in Eschen
tax law and asset structuring
◆ Implementation of the uniform Avaloq banking platform; founding of Shared Service Centers
2011
◆ Reworking of the company
website: www.llb.li
Banking of Bank Linth
◆ Cooperation with the VP Bank
◆ Opening of the branch offices
Group and preparations for
in Erlenbach and Winterthur
cooperation with the Liechten-
◆ Expansion of LLB (Österreich) AG
and the representative office in
Dubai
◆ Opening of the bank branch
in Geneva
stein Post
2012
◆ Appointment of Head Private
◆ «move!» programme, new management and market organisation
Value-oriented corporate management
Profit orientation is a central corporate value within the LLB
Group. In our opinion, economic success, however, goes hand
in hand with our social responsibilities for both clients and employees and – as a bank rooted in the region – for the general
public. We take care to ensure that we remain viable in the
long term. To this end, we measure the capital appreciation of
our company according to the economic profit model, which
encompasses all financial and operative key performance indicators (KPIs).
In order to create sustained value for clients, shareholders
and staff the LLB Group adheres to the following principle: our
return on equity shall clearly exceed capital costs. Profit after
capital costs is our key performance indicator and control parameter. This is reflected in our risk policy, which is aimed at
obtaining an adequate and preferably permanent return. Profit
after capital costs is used by us to take into account that shareholders expect interest on the capital they have provided.
Relevant criteria:
◆ Every business decision is based on a risk / return profile.
◆ Value-oriented control parameters make strategy and
investments comparable.
◆ Strategic and operative planning are closely linked,
responsibilities are clearly defined.
◆ The aspects return and risk are given due consideration
for employee remuneration and profit sharing.
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Financial and operative performance indicators
Supreme objectives
Economic profit model
Economic profit = profit – (equity expense ratio × equity)
Growth
Cost efficiency
Capital efficiency
Financial key performance indicators (KPI)
Balanced scorecard
Financial key performance indicators
Growth
Cost efficiency
◆ Net new money inflow > 3 % p. a.
Capital efficiency
◆ Cost / income ratio holds top position
in banking industry comparison.
◆ Return on equity > 12 % *
◆ Tier 1 ratio = 16 %
New as of 2012: 55 – 60 %
* Assuming regular market conditions.
Operative key performance indicators
Clients
Employees
Processes
◆ Motivation / performance ¹
◆ Client satisfaction ³
◆ Process efficiency ²
Operational risks
◆ Optimisation risk profile
1 In 2010, we conducted an employee satisfaction survey within the LLB Group
(see Annual Report 2010, pages 60 and 61).
2 In 2011, we focused on the operative «processes» performance indicator
(see chapter «Corporate Center, Our five priorities in 2011», page 20).
3 In the 2012 business year, we intend to put our main focus on the operative
«clients» performance indicator.
Development of our key performance indicators
The LLB Group communicates its objectives in a transparent
way and compares its performance with its objectives.
Growth
2007 – 2011, Net new money inflow in percent
1.1
2011
5.5
2010
2009
–2.2
–1.0
2008
5.9
2007
–3
–2
–1
0
1
2
3
4
5
6
7
KPI: net new money inflow.
Objective: net new money inflow must amount to at least
3 percent per year.
Review
In 2007, we were able to achieve strong net new money inflows
in Eastern Europe and in the Middle East. In 2008 and 2009,
the financial and economic crisis as well as tax debates made
the acquisition of net new money in the International Market
Business Division significantly more difficult. In 2010, we
achieved gratifying net new money inflows in all business divisions. We also acquired new mandates in the International
Market Business Division.
2011 business result
In 2011, we recorded gratifying net new money inflows in the
Domestic Market and International Market Business Divisions.
In the Institutional Market Business Division, we recorded
a slight minus on account of outflows from clients and intermediaries.
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22
23
Cost efficiency
2007 – 2011, Cost / income ratio in percent
95.6
2011
72.7
2010
63.0
2009
65.2
2008
48.6
2007
10
20
30
40
50
60
70
80
90
100
KPI: cost / income ratio. *
Objective: in industry comparison, the cost / income ratio
must attain a top position. As of 2012: 55 – 60 percent.
* The costs include write-offs and value adjustments in relation to
the operating income.
As of 2012: personnel and general and administrative expenses
and write-offs in relation to the operating income.
Review
The first-time consolidation of Bank Linth led to a rise in the
cost / income ratio in 2007. In 2008 and 2009, the global financial and economic crisis had an unfavourable effect on the cost /
income ratio. In 2010, the cost / income ratio increased again
due to falling earnings. Historically low interest rates and the
result from financial investments, which is directly booked
to profit and loss accounts, as well as value adjustments had a
negative effect on the overall result.
In 2011, earnings decreased again and operative costs increased slightly. The specific value adjustment of a Lombard
loan that we undertook in September 2011 had a negative
impact on total costs and as a result on the cost / income ratio.
Capital efficiency
2007 – 2011, Return on equity in percent
2011
0.7
6.2
2010
10.8
2009
9.2
2008
15.9
2007
2
4
6
8
10
12
14
16
18
KPI: return on equity.
Objective: return on equity must be above 12 percent. *
Review
Until 2007, we managed to continually increase capital efficiency and maintain our challenging key performance indicator. Reasons for this were our growth activities and favourable business conditions in the financial markets. In 2008 and
2009, the financial and economic crisis as well as our negative
result from financial investments led to a decline in revenues
and therefore to a lower return on equity. By 2010, the return
on equity had declined to 6.2 percent and was below our
medium-term objectives.
The return on equity declined to 0.7 percent. The main reason
for this was the specific value adjustment of a Lombard loan.
At the same time, revenues from the commissions and fees as
well as the securities trading business decreased.
* Assuming regular market conditions.
Capital efficiency
2007 – 2011, Tier 1 ratio in percent
2011
13.9
2010
13.9
13.7
2009
13.5
2008
9.7
2007
2
4
6
8
10
12
14
16
KPI: tier 1 ratio.
Objective: the tier 1 ratio must amount to 16 percent.
18
Review
Since 2007 we have been able to continually increase the tier 1
ratio. In 2010, we achieved 13.9 percent, a level that is not
only noticeably above the legal minimum of 8 percent but also
above our then medium-term target value of 12 percent. In order to provide our clients with an above-average security level,
even within the new regulatory framework conditions, we
raised our medium-term objective to 16 percent as of 2011.
This target shall be achieved by the end of 2016.
At 13.9 percent, the tier 1 ratio remained above the legal requirements. Despite continual credit growth the value remained
stable, compared with 2010, since neither the capital base nor
the risk-weighted assets significantly changed.
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Seite 24
Target range of cost / income ratio of 55 to 60 percent
As at 31 December 2011, our cost / income ratio stood at
95.6 percent. All expenses, including, for example, the specific
value adjustment of a Lombard loan, are covered in this calculation. This key figure is greatly distorted by value adjustments
and provisions in 2011. That is why the cost / income ratio is
below our target value.
From 2012, we will calculate the cost / income ratio without the item «value adjustments, provisions and losses». As
a result, the key figure will be more meaningful in an industry
comparison and is less subject to strong fluctuations. An internal analysis and an external benchmarking have shown that –
taking into account the new calculation approach – a target
range of 55 to 60 percent will result in a healthy cost / income
ratio while still retaining innovative strength.
Capital and risk management
Part of the banking business is to accept risks. The LLB Group
actively manages risks according to strategic targets and applies a conservative financing structure.
In 2011, we revised the risk policy guidelines and adapted
them to the changed market conditions, the new regulatory
requirements (Basel III) as well as growth in our corporate structure. We updated and established detailed qualitative and
quantitative standards for risk responsibility, risk management
and risk control. Furthermore, the position of a Chief Financial
Officer (CFO) was created at the level of the Group Executive
Board and the Board of Management. This move highlights the
importance of financial management and risk management
in our company.
At the same time, we defined adequate organizational and
methodical parameters for specifying and managing risks. With
the introduction of the «Internal Capital Adequacy Assessment
Process» (ICAAP) we ensure that there is always adequate capital to cover all essential risks. In addition, risk strategy and risk
propensity are defined, all essential risks are evaluated and the
processes and control mechanisms are specified.
The ICAAP framework
Risk strategy and risk tendency
Capital
assessment
models
Capital planning
and management
Economic perspective of risk assessment
Credit risk
Market price
risk
Interest rate
fluctuation
risk
Currency
risk
Liquidity and
refinancing
risk
Operational
risk
Strategic
risk and
business
risk
Group
perspective
↦
LLB Vaduz
↦
Bank Linth
↦
LLB Switzerland
↦
LLB Österreich
↦
Other Group
companies
Risk monitoring and management information
Risk concentration, risk control, limit system
Processes, scenario analyses and stress tests, risk aggregation
Risk modelling
↦
↦
Overall
currency
risk
Overall
liquidity
risk
Overall
operational risk
Overall
strategic
risk and
business
risk
↦
↦
Overall
interest rate
fluctuation risk
↦
↦
Overall
market
price risk
↦
↦
Overall
credit risk
↦
Overall
risk of the
LLB Group
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Equity strategy
A good equity ratio not only protects reputations, it is also
part of the economically and financially trustworthy behaviour
of a bank. LLB is considered to be of systemic relevance to the
national economy of Liechtenstein. It is therefore part of our
identity to have a sufficiently high-quality capital base at our
disposal. Creditworthiness – even in difficult times – offers
clients, shareholders and employees an important added value.
We are convinced that a strong capital base will be a definite
competitive advantage in the future.
Our capital base covers the capital needs required for our
objectives and meets the supervisory authorities' requirements.
The LLB Group's financial power supports the growth strategy
and shall remain unaffected by the capital market's fluctuations. With scenario analyses and stress tests, respectively, we
simulate external influences and show how these affect our
capital base.
The LLB Group manages its capital prudently. At the end of
2011, the LLB Group had a solid capital base of CHF 1.6 billion
at its disposal, which corresponds to a tier 1 ratio of 13.9 percent (31 December 2010: 13.9 %; 31 December 2009: 13.7 %).
Today, our «hard» core capital already significantly exceeds the
levels prescribed by the Basel III international equity standards,
which will come into effect at the start of 2013. We want to
continue to guarantee our clients an above-average security
level. That is why one of our medium-term goals is to raise the
tier 1 ratio to 16 percent by 2016 at the latest.
Collateral lending policy
In 2011, we constantly served the needs of our clients in
Liechtenstein and eastern Switzerland. We supported municipalities, companies, small businesses and private persons to
finance their plans for the future. The majority of the loans, i. e.
84 percent, were loans secured by mortgages. Moreover, we
granted operating loans and Lombard loans.
The LLB Group's collateral lending policy strictly follows
market-economy principles. Every decision is individually tailored to fit the needs of each private or corporate client. Experienced specialists examine the creditworthiness of new
borrowers and establish their risk category. We grant individual loans after appraising risks and profitability according to
specific guidelines. We implement a risk-related pricing policy
by allocating costs according to the costs-by-cause principle.
Credit risk management is of central importance for our
Group. Besides systematic risk / return management at the individual loan level, we also monitor our default risks at the
portfolio level. The primary objectives are: to reduce the overall risk through diversification and to generate a constant return. These are decisive cornerstones of our collateral lending
policy, which aims at maintaining our competitiveness.
Main shareholder: The Principality of Liechtenstein
On 22 November 2011, the Liechtenstein Government as
representative of our majority shareholder, the Principality of
Liechtenstein, adopted an investment strategy for Liechtensteinische Landesbank AG. With this, the Government implemented the law concerning the control and supervision of
public companies (ÖUSG), which came into force on 1 January
2010. The strategy defines how the Principality intends to use
its majority equity stake in the medium and long term. This
also gives minority shareholders certainty in planning. Drawing on Art. 15 of the Corporate Governance Law, the investment strategy was decided upon after consultation with the
Board of Directors of LLB.
The Liechtenstein Government explicitly supports the stock
exchange listing of LLB and maintains its majority stake of at
least 51 percent. The Government represents the shareholder
interests of the Principality at the General Meeting of Shareholders pursuant to the rights afforded to it by stock corporation law. The Government observes corporate autonomy as
well as the rights and obligations resulting from the stock exchange listing. At the same time, as a shareholder, the Government also respects the decision-making authority of the Board
of Directors regarding corporate strategy and corporate policy.
Quality and innovation management
Banks are continuously implementing changes in order to
best serve the interests of their clients. The LLB Group wants to
offer high-quality products and services at attractive conditions. In 2011, we focused on product and process innovations,
cooperation with other companies as well as system integration. Important traditional instruments of our quality and innovation management are the evaluation of client feedback and
the corporate suggestion scheme.
Quality management: our employees play an important role
in the improvement of our range of services. They actively contribute valuable suggestions for the optimisation of products
and processes.
Product innovations: in 2011, we launched two inflationprotected funds (in CHF and EUR). The basis for these was our
study «Finanzanlagen und Inflation» (Financial investments
and inflation), in which we examined the effectiveness of relevant asset classes as a hedge against inflation.
We developed country-specific products for our growth
markets of Russia, Eastern Europe as well as the Near and
Middle East and adapted our credit policy.
In addition, we compiled the service package «Active Advisory» for active private investors and established a research
organisation for the BRIC countries.
We want to systematically implement the innovations required by the market. For this reason, our Group Corporate Development as well as the persons responsible for products and
services within the LLB Group are in regular contact with opinion leaders, business associations, governmental offices and
the Liechtenstein Financial Market Authority (FMA).
Process innovations: the improvement of the advisory process
is of particular concern to us. In 2011, we introduced country
fact sheets for our client advisors, which contain market-specific
information about services and products.
In 2011, we completed the Group-wide introduction of
the Avaloq banking software. The uniform IT platform increases
processing quality and productivity.
We newly defined customer segmentation for onshore
banking in Liechtenstein.
In the framework of the «move!» programme we determined further potential for optimising costs and efficiency.
Corresponding projects will be started in 2012.
We have automatised the monitoring of both reporting
requirements and compliance with investment guidelines in
order to improve processes in the fund business.
24
25
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Cooperation: the Liechtensteinische Landesbank and the
VP Bank, Vaduz, are jointly buying information services. Both
banks are also joining forces in the areas of document printing
and dispatch. From the end of 2012, the data processing centres of both banks will be housed in the new LLB branch office
in Eschen.
A further cooperation has been in existence since 16 January 2012: Liechtensteinische Landesbank AG and Liechtensteinische Post AG have merged their ATM networks. LLB now
provides its customers in Liechtenstein with services at 20 locations.
Change in the Board of Directors
At the General Meeting of Shareholders on 6 May 2011, Siegbert
Lampert stepped down from the Board of Directors of the
Liechtensteinische Landesbank after nine years on account of
the period of office limitation statute. He had a decisive impact
on the new strategic orientation of the LLB Group in the past
years. The Board of Directors and the Board of Management
would like to thank Siegbert Lampert for his great commitment
and for his ever constructive and successful collaboration.
The General Meeting of Shareholders elected Dr. Felix R.
Ehrat as a new member of the Board of Directors for three years.
Ingrid Hassler-Gerner and Konrad Schnyder, respectively, were
confirmed for a further term of office of three years.
Changes in the Group Executive Board
and the Board of Management
Elfried Hasler stepped down from the Group Executive Board
and the Board of Management of the Liechtensteinische Landesbank, for personal reasons and at his own request, as of 30 June
2011. The Board of Directors and the Board of Management
thank Elfried Hasler for his great and far-sighted commitment
and for his contributions to the benefit of the LLB Group.
Urs Müller, Head of the Institutional Clients Business Division, was appointed by the Board of Directors as a new member
of the Group Executive Board and the Board of Management.
He took over Roland Matt's function on 1 April 2011 and is
responsible for the Domestic Market Business Division and the
Institutional Market Business Division. Roland Matt took over
responsibility for the International Market Business Division.
Dr. Kurt Mäder remained in his function as Head of the Corporate Service Center. Dr. Josef Fehr continued as Chairman
of the Group Executive Board and the Board of Management.
Dr. Josef Fehr stepped down as Chairman of the Group
Executive Board and the Board of Management of the Liechtensteinische Landesbank, for personal reasons and at his own request, as of 16 January 2012, following a distinguished twentysix-year career serving the development of the LLB Group. He
had been Member of the Board of Management since 1992;
at the start of 2000, he became its Chairman. Dr. Josef Fehr decisively helped to shape all the important milestones of LLB
AG: the partial privatisation in 1993, the opening of new business divisions and markets, the development and expansion
of the private banking sector, the acquisition of the majority
equity stake in Bank Linth and the growth strategy within
the Group.
On 16 January 2012, Roland Matt assumed responsibility
as Chairman of the Group Executive Board and the Board of
Management, of which he has been a member since 2009. Since
April 2011 he had been Vice Chairman of the Group Executive
Board and the Board of Management. Prior to this, he had held
various management positions with LLB since 2002; finally,
up until March 2011, he was responsible for the Domestic
Market Business Division as well as the Institutional Market
Business Division, and since April 2011 he had been Head
of the International Market Business Division.
Christoph M. Reich was appointed Chief Financial Officer
(CFO) as of 16 January 2012. The Board of Directors simultaneously elected him a member of the Group Executive Board
and the Board of Management. Christoph M. Reich had been
responsible for the Group Finance & Risk Department of the
LLB Group since November 2010.
Since 16 January 2012 the Group Executive Board and
the Board of Management has consisted of five members. The
recruitment process for the vacant position of the Head of the
International Market Business Division has begun. The Board
of Directors, the Group Executive Board and the Board of Management want to align the organizational structure of the LLB
Group more strongly with clients and markets and have initiated a corresponding project. The implementation of the new
organizational structure is planned for 1 July 2012.
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Seite 27
We view structural change in the banking sector as an opportunity. The Avaloq IT platform
that we newly installed and other measures will
help us to increase efficiency within the LLB
Group in 2012. Interest rates will remain low
while stock markets will remain volatile. In order
to be successful, we shall continue to look forward and invest in the future.
26
27
Outlook
Market development
The main business segments of the LLB Group face far-reaching
changes: cross-border private banking clients are discerning,
and the necessity of regulatory adjustments continues to be
coupled with volatile financial markets. We expect that monetary policy aimed at tackling the debt crisis in Europe will stay
loose and that as a consequence interest rates will remain
exceptionally low. We therefore assume continued margin pressure in both the asset management business and the credit business. At the same time, we want to actively shape structural
change. In 2012, we will further modernise our infrastructure,
intensify cooperation with our partners, optimise processes
and automatise tasks. These measures are in addition to our
investments in increasing market performance.
Framework conditions
◆ The worldwide economic slow-down: the result will
be low economic growth in Europe – a development that
Liechtenstein and Switzerland too will not be able to
escape. Growth in the emerging markets remains stable.
◆ Real estate markets in Liechtenstein and in eastern
Switzerland are robust.
◆ The central banks SNB, EZB and Fed are pursuing an expansive monetary policy in the context of a restrictive fiscal
policy in the euro area and the USA.
◆ This expansive monetary policy is not resulting in a
resurgence of inflation.
◆ In the core currencies CHF, EUR and USD interest rates
remain stubbornly low.
◆ Stock markets are volatile.
◆ The exchange rates remain unchanged: CHF 1.20 to
CHF 1.30 per EUR; CHF 0.90 to CHF 1.00 per USD.
◆ Regulatory requirements are becoming more complex,
e.g. as a result of Basel III, FATCA, AIFM and cross-border
regulations.
Possible negative influences:
◆ a persisting euro crisis and a persisting financial and
debt crisis
◆ a further appreciation of the Swiss franc vis-à-vis a
weak euro and US dollar
◆ a collapse of large European banks in the wake of
the euro crisis
◆ a recession in Europe and the USA
Objectives of the LLB Group in 2012
We have already laid the foundations for the realization of our
development: with the implementation of Avaloq we will be
able to significantly improve our efficiency. In mid-2012, the
Shared Service Centers for Payment Services, Securities Administration and Trading Services will be operational Group-wide.
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Seite 28
The analysis of the «move!» programme is to be followed by
additional measures to expand productivity. In 2012, we will
focus on the realization of various projects of the «move!»
programme and the planned reorganisation of the LLB Group.
We are investing in the renewal of the branch network in our
home markets. Our priorities in this area are the construction
projects in Eschen (Liechtenstein) as well as in the Swiss municipalities Pfäffikon / Schwyz, Kaltbrunn and Schmerikon. In our
growth markets of Eastern Europe, the Near and Middle East we
are increasing our market presence.
We continue to adhere to our three-pillar strategy while
simultaneously concentrating on our core business activities.
For this reason, LLB sold its 48-percent equity stake in the Elips
Life AG life insurance company to the Swiss reinsurance company Swiss Re in September 2011. Moreover, we intend to
sell our 67-percent equity stake in swisspartners Investment
Network AG in the first half of 2012.
Earnings forecast
Market turbulence and the dynamics to which the international economic and regulatory framework conditions are subject
as well as changes in cross-border private banking involve uncertainties. For this reason, instead of making an earnings forecast, we focus on the things we can influence. We will reduce
costs with our Shared Service Centers and the «move!» programme. At the same time, we will align the organizational
structure of the LLB Group more closely with clients and markets and create the prerequisites for heading into the future
even stronger.
Dividend policy
On account of the unsatisfactory business result in 2011, we
will propose a marked reduction in the 2011 dividend to the
General Meeting of Shareholders on 4 May 2012. In future, we
want to be able to again offer our shareholders an attractive
dividend yield, even in a challenging market environment.
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1
Seite 29
Segment reporting Clients and markets 31 i Domestic Market 36
International Market 39 i Institutional Market 42 i Corporate Center 45
Stakeholders report LLB bearer share 47 i Brand and sponsoring 49
Employees 52 i Regulatory framework and developments 55
Social and ecological sustainability 57 i Corporate governance 60
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As a result of the financial and economic crisis,
clients' behaviour has changed: security and
trust are now the decisive factors. The LLB Group
has retained its position in the Liechtenstein
and Swiss markets and gained ground in the
growth markets. Competition will become fiercer
in the future.
30
31
Clients and markets
Domestic Market
Private and corporate client business
The global economy presented a fragile picture in 2011. The
market environment was distinguished by intensive competition. Nevertheless, the LLB Group was able to slightly increase the number of its private and corporate clients and consolidate its strong position in the mortgage lending business.
In spite of the fierce competitive pressure, we were able to
maintain our interest rate margins in the lending business. The
average collateral lending rates remained stable. Short-term
fixed mortgages were the first choice of most clients. In granting loans, the Liechtensteinische Landesbank applies its wellproven lending principles. Of particular importance are the
value of the collateral and the lender's ability to afford the loan.
In the year under report, the economic environment was
challenging. The debt crisis in the euro area, the sharp increase
in the value of the Swiss franc and the slow-down in foreign
economic activity weighed upon our domestic markets. The
development in Europe represents the main risk factor for the
Liechtenstein and Swiss economic region because the EU is
the most important trading partner for both countries. In
2011, the export industry was confronted with the effects of
the exchange rate situation. On 6 September, the Swiss
National Bank pegged the minimum exchange rate of the franc
to the euro at 1.20. This measure led to a stabilization of the
situation and enabled companies to conduct their planning
with more security. During the first three quarters of 2011, exports expanded but they decreased substantially in the last
quarter of the year.
Turnover in retail business also fell sharply with the strength
of the Swiss franc prompting consumers to shop in the euro
countries. The boom in the construction industry continued supported by historically low interest rates. Thanks to ongoing
immigration, the demand for residential property in the east of
Switzerland remained high. Following the expected liberalisation in this area, construction activity in Liechtenstein also
continued at a high level. The unemployment rates in the LLB
Group's home markets were below the Swiss average of 3.3 percent at the end of December 2011. In Liechtenstein, unemployment stood at 2.5 percent at the end of December, and in the
east of Switzerland at 2.4 percent.
Corporate and private pension provisioning
The Liechtenstein pension provisioning sector maintained its
dynamic growth – albeit at a somewhat slower pace – in 2011.
The key products of the insurance companies are innovative
insurance solutions, which are customized to suit the legal and
taxation regulations of the target countries and which represent an important form of retirement planning. As an EEA member state and a customs treaty partner of Switzerland, Liechtenstein is the only country having access to both the Swiss and
European markets. Its stable and liberal economic system encourages production innovation. For example, Liechtenstein is
a good location for international pension funds. The Principality
Review of operations i Clients and markets
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Seite 32
Key measures to penetrate the domestic market
LLB
New products and services
Bank Linth
◆ Two inflation-linked funds
◆ «Really Simple» campaign (concept
◆ Introduction of individual clients segment
for simplifying banking services)
◆ Special offers relating to 150th anniversary
Client events
◆ «Exklusiv im Hof» (client events in
◆ Two investors' conferences in Pfäffikon
private banking business)
and Bad Ragaz
◆ Women finance
◆ 7th Bank Linth Golf Invitation Tournament
◆ Investment forum
in Bad Ragaz
◆ In-house seminars at companies
◆ Four client events in private banking
◆ Financial perspectives on the subject
business
of corporate pension provisioning
◆ Various events related to the Bank's
150th anniversary
◆ LLB golf tournament Domat / Ems
◆ GEWA Hombrechtikon
Fairs
Locations
◆ New branch office in Eschen
◆ Opening of Erlenbach and Winterthur
◆ Cooperation with the Liechtenstein
Post regarding the joint use of ATMs
branch offices
◆ Planning and / or commencement of
from 2012
new building / renovation of Pfäffikon,
Kaltbrunn and Schmerikon branch offices
Corporate identity
◆ Redesign of website www.llb.li
◆ Image campaign 150th anniversary
has been accumulating expertise in the area of mandatory corporate pension provisioning since 1989. In 2007, Liechtenstein
implemented the EU pension fund directive in the form of a
national pension fund law. Accordingly, the country is now in
a good position to participate in this new growth market.
Liechtensteinische Landesbank AG has established itself
as a competence centre for corporate and private pension planning in the Liechtenstein pension provisioning sector. Even after
selling its 48-percent equity stake in Elips Life AG, a life insurance company, to Swiss Re in September 2011, it is continuing
to cooperate with the company in the field of collective pension
planning. The LLB is still expanding its private financial planning and corporate pension provisioning business operations.
At the same time, the LLB Liechtenstein Pension Foundation is continuing to grow. As at 31 December 2011, it provided
services to 330 companies (300 in 2010, 288 in 2009) with
3'500 employees (2'981 in 2010, 2'679 in 2009). The total pension fund capital stood at CHF 291 million (CHF 243 million in
2010, CHF 212 million in 2009). The ALVOSO LLB Swiss pension
fund had 261 companies (271 in 2010, 231 in 2009) with 1'281
employees (1'294 in 2010, 1'024 in 2009). The pension fund
capital amounted to CHF 156 million (CHF 154 million in 2010,
CHF 128 million in 2009).
The LLB Group's pension funds are still soundly financed
despite the weak financial markets and volatile currencies. The
LLB Pension Foundation for Liechtenstein maintained a stable
position and is continuing to grow. The interest rate on the
retirement capital of the persons insured stood at 2.0 percent.
The annual pension payments amounted to around CHF 23 million. In terms of size and market share, Liechtenstein's newest
pension foundation was the second largest among independent collective pension schemes. During 2011, we carried out a
review of our basic conditions. Two points stood at the centre
of attention. Firstly, the technical interest rate, which currently
stands at 4.0 percent, and which in view of the demographic
development will be reduced to 3.5 percent from 1 January
2012. Secondly, the stipulation of the pension conversion rate,
which stands at 7.0 percent and which will be reduced to 6.8
percent from 1 January 2015. The LLB Liechtenstein Pension
Foundation has a very good structural ratio: for each pensioner
there are 100 active insured contributors.
Development of pension capital
2007 – 2011, in CHF millions
291
2011
243
2010
212
2009
145
2008
115
2007
50
100
150
200
250
300
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32
33
The mortgage loans which a bank grants today
will determine its balance sheet for the next twenty
or thirty years. Sustainable risk management systems for mortgage lenders stood at the centre of
developments in Switzerland in 2011. These must
ensure that, in spite of low interest rate levels and
tight margins, prudent and cautious lending policies
are observed. In 2011, the Swiss Federal Financial
Market Supervisory Authority (FINMA), the Swiss
National Bank and the Liechtenstein Financial Market Supervisory Authority (FMA) carried out a detailed review of banks' mortgage lending business.
The LLB Group adheres to a stringent lending policy.
In 2011, it also followed the goal of strengthening
its equity capital base. It has already largely implemented the equity capital and liquidity regulations
The Liechtenstein financial centre takes its responsibility as
an integral part of the world economic system seriously. Since
2008 it has concluded two dozen OECD-compliant tax information exchange agreements and double taxation treaties –
including one with Germany. In autumn 2011, the Peer Group
of the OECD Global Forum completed the first phase of its review process. It gave Liechtenstein a good report card. In the
banking area it assessed Liechtenstein as being fully compliant
with all test criteria and in conformity with OECD standards.
This means that Liechtenstein is regarded internationally as a
modern, stable and reliable financial centre and no longer as
an offshore financial location. At the end of 2012, a review of
the practical implementation of OECD standards is to be conducted.
In 2011, the Liechtenstein banking centre was able to
maintain its position. Even though the turbulence on the stock
markets had a negative impact on the performance of their
investments, on average banks voluntarily maintained more
than twice the legally required equity capital. The banks' private
banking business model proved to be stable and they were
able to post new money inflows. The following trends were registered in the LLB Group's International Market: the inflow of
assets from the emerging markets is increasing and is gaining
in importance; in contrast, assets from the present core markets
are set to decline in future.
The European Union and the United States are continuing
to exert pressure on the Swiss and Liechtenstein financial
centres. Switzerland has signed agreements regarding a flat
compensation withholding tax with Germany and the United
Kingdom. The regulation and harmonization of the financial
markets is continuing unabated. Apart from modifications to
new basic business conditions, additional structural changes
appear to be unavoidable. The pressure to consolidate will continue to mount and consequently various forms of cooperation
in the financial industry are to be expected.
As a result of the strong Swiss franc, international asset
managers in both Switzerland and Liechtenstein find themselves in an ever widening cost / earnings gap. Earnings are
largely booked in euros or US dollars, but costs are incurred in
francs. On account of the low interest rate levels, earnings
from interest differential business fell and, furthermore, the
general uncertainty led to passive investment behaviour
among clients.
In 2011, the stock markets were unpredictable; they remained highly volatile and closed the year under the 2010 level.
Fixed interest investments provided no alternative, largely because of the market uncertainty concerning government bonds.
Many clients either kept a high level of liquidity, channelled
funds back into their companies or invested in traditional tangible assets such as real estate or gold. In 2011, the name
of the game was the preservation and safeguarding of assets.
specified in the new Basel III global standards.
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Development of assets under management
13'467
2011
14'474
2010
15'030
2009
15'698
2008
13'475
2007
3'000
6'000
9'000
12'000
15'000
18'000
The Liechtenstein investment fund centre was subject to
intense competitive pressure in 2011. There was a marked increase in competition between the various European fund locations. In view of the volatile stock markets, the euro crisis, as
well as the low level of interest rates, there was a degree of restraint in the launching of new funds. Moreover, the market
saw very little innovation, and what there was largely involved
the structures of family offices, for example, for private equity
or real estate.
Intermediaries and actual clients were extremely sensitive
to price concerns in 2011 and expected a price / performance
ratio compatible with prevailing market conditions. Consequently, service providers reacted with aggressive price reductions in order to secure the meagre new money inflows.
As one of the three largest fund vendors in Liechtenstein,
we shall be confronted with new challenges in the future. On
1 August 2011, Liechtenstein enacted a new law for certain undertakings for collective investments in securities, thus implementing the EU's UCITS IV directive. The aim being to open up
market opportunities in the EU by enhancing the attractiveness of the Liechtenstein fund centre. Furthermore, the AIFM
directive (Alternative Investment Fund Managers) is to be incorporated in national law by July 2013. These new EU directives
will lead to an intensification of competitive pressure on the
European fund market.
In future, the UCITS IV legislation should make Liechtenstein even more attractive especially for fund promoters having
internationally oriented fund structures. For example, the EU
passport held by a capital investment company enables UCITS
funds that comply with the EU investment directive to be domiciled and launched in another EU member state without a subsidiary or branch office having to be set up or maintained in
that state. The so-called «Key Investor Information Document»
(KIID), containing the most important information for investors,
supersedes the present simplified sales prospectus. This key
information document is standardized throughout Europe and
enables investors to quickly compare various funds.
The Liechtenstein UCITS law also provides for new crossborder «master / feeder» structures under the UCITS label. A precondition for the setting up of a feeder UCITS is that this fund
must invest at least 85 percent of its assets in units of another
UCITS or in the fund assets of another master UCITS. In addition,
there are new clear conditions for the merging of funds, and
the time to market in cross-border distribution is to be considerably shortened thanks to a more efficient licensing procedure. The notification for the initial licensing of a fund is coordinated directly between the supervisory authorities.
The EU's AIFM directive came into force on 21 July 2011
as a direct consequence of the financial crisis. As a result, the
EU now subjects the managers of alternative investment
funds (AIFM) to official supervision. The EU member states
must incorporate the regulations in national law by 21 July
2013. Managers domiciled in the EU will therefore have available an EU passport from 2013 which permits the management and distribution of non-UCITS funds throughout the EU.
In addition to hedge funds and private equity funds, this will
also apply to real estate and commodity funds as well as to all
open and closed collective investment undertakings. The directive also applies to managers of non-UCITS – which are domiciled in a third country such as Switzerland – who want to distribute a non-UCITS fund from there in the EU.
Development of investment funds volume
8'641
2011
9'314
2010
8'817
2009
6'560
2008
10'832
2007
2'000
4'000
6'000
8'000
10'000
12'000
Development of custodian bank mandates
2007 – 2011, in numbers
240
2011
218
2010
198
2009
185
2008
156
2007
30
60
90
120
150
180
210
240
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35
The LLB Group business divisions: according to target markets, clients and trends
Domestic Market
Income
CHF 153.1 million
CHF 119.2 million
CHF 96.8 million
Share of operating income
41.5 %
32.3 %
26.2 %
Profit before tax
CHF 43.6 million
CHF 0.4 million
CHF 0.3 million
Assets under management
CHF 13.8 billion
CHF 13.5 billion
CHF 18.1 billion
Employees as at
31 December 2011
(full-time equivalents)
418
296
79
Clients
◆ Private individuals
◆ Private individuals
◆ Intermediaries
◆ Fund promoters
◆ Small and medium-sized
◆ Independent asset managers
companies
◆ Legal entities subject to public
law
◆ Corporate pension schemes
Origin of clients
◆ Liechtenstein
◆ Switzerland
◆ Core markets: Austria, Italy, Germany
◆ Growth markets: Russia, Eastern
◆ Liechtenstein
◆ Switzerland
◆ International
Europe, Near and Middle East
Service offer
◆ Retail banking: e.g. savings
◆ Private banking: e.g. investment
◆ Fund and asset management
and mortgage lending business,
counselling, asset management
◆ Private labelling services
payment services
and structuring, private financial
◆ Brokerage and custody services
planning
◆ Lombard loans
◆ Corporate clients
◆ Private banking
◆ Lombard loans
Distribution
◆ Liechtenstein: 5 branch offices,
20 ATMs ( joint operation of LLB
ATMs and Post ATMs from 2012),
online banking
◆ Switzerland: 25 branch offices,
30 ATMs, online banking
Market drivers
◆ General economic growth
◆ 3 booking centres (Vaduz,
Zurich, Vienna)
◆ Distribution via Vaduz and
Zurich
◆ 4 further national and international locations
◆ Network of intermediaries in
growth markets
◆ Strong growth of high net worth
◆ Growing need for tailor-made
◆ Construction activity
individuals' assets in Eastern Eu-
investment possibilities and
◆ Low interest rates
rope as well as in the Near and
transparent investment solu-
◆ Increasing use of online banking
Middle East
services
◆ Private pension provisioning
(third-pillar)
◆ Growing need for simple and
tailor-made investment possibilities, transparent investment
solutions and asset protection
measures
tions
◆ Search for alternatives for structured investment pools
◆ Attractiveness of the Liechtenstein fund centre
◆ Stock market performance
◆ Stability of the Swiss franc
Market shares
◆ Market leader in the Liechtenstein ◆ Niche provider in international
savings and mortgage lending
private banking
◆ Largest fund vendor in
Liechtenstein *
◆ Second largest asset manager
business as well as private pension
in Liechtenstein **
provisioning
◆ Largest regional bank in eastern
Switzerland
Most important competitors
◆ Liechtenstein: VP Bank, LGT,
Centrum Bank, Neue Bank
• Switzerland: St. Galler Kantonalbank, Graubündner Kantonalbank, UBS, Credit Suisse,
Raiffeisen banks, regional banks
* According to custodian bank
mandates.
** According to assets under
management.
◆ Various internationally active
major and private banks
◆ LGT, VP Bank, Centrum Bank,
Neue Bank
◆ Various internationally active
major and private banks
◆ Private financial planning
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Seite 36
Domestic Market
The low level of interest rates in 2011 generated higher lending volumes at the Liechtenstein
and Swiss banks. The real estate market continued its dynamic development coupled with
intensive competition. In spite of its strict lending policies, the LLB Group again registered a
high level of mortgage lending business. As
in previous years, we continued to invest in the
expansion and modernisation of our branch
network.
Structure
The Domestic Market Business Division represents a solid pillar
of the LLB Group. It encompasses the universal banking and
private banking business in the domestic markets of Liechtenstein and Switzerland. The Liechtensteinische Landesbank
with headquarters in Vaduz and Bank Linth with headquarters
in Uznach offer a full range of banking and financial services
for private and corporate clients. These services include investment counselling and asset management, private financial
planning and corporate pension provisioning, as well as savings and mortgage lending business. We have 5 bank branches
in Liechtenstein and 25 in the Swiss cantons of Zurich, St. Gallen,
Schwyz and Glarus. Furthermore, we also operate 50 ATMs at
20 locations in Liechtenstein and 30 in the east of Switzerland.
Investments
In 2011, we invested in the expansion and upgrading of our
bank branch network, in a modern online bank website and in
the renewal of the Bank's IT infrastructure. Since 1 January
the entire Domestic Market Business Division, including all back
and front office areas, has operated the Avaloq banking software system. This is enabling us to improve efficiency and take
care of our clients' concerns more promptly. Personal contact
with clients is one of the LLB Group's key priorities. Accordingly,
in 2011 we introduced a new individual clients segment, which
enables a better targeted and more active canvassing of clients.
In June, Bank Linth opened a new bank branch in Erlenbach
and another in Winterthur in November. In 2012, we are planning to move into new business premises in Eschen, Liechtenstein, as well as in Kaltbrunn, Pfäffikon / Schwyz and Schmerikon
in Switzerland. Furthermore, in the year under report, we also
made investments in enhancing our expertise in the areas of
taxation and lending business. On 5 December, our redesigned,
informative website went online at www.llb.li.
Business division result
Despite difficult business conditions in 2011, the Domestic
Market Business Division was able to hold its ground. Loans to
customers – especially mortgage loans – climbed to a high
level so that, in spite of the low interest rate phase and persisting pressure on margins, an increase in net interest income
was attained. Good net new money inflows were reflected in
the positive development of fee and commission income.
Clients were restrained in their investment behaviour, which
impacted on our business result. At the same time, our operating expenses increased, largely as a result of the investments
in the new bank branches of Bank Linth, as well as in the introduction of the individual clients segment.
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Seite 37
Operating income increased by 12.8 percent to CHF 153.1 million (2010: CHF 135.8 million, 2009: CHF 145.0 million). Operating expenses rose by 5.2 percent to CHF 109.5 million (2010:
CHF 104.1 million, 2009: CHF 100.6 million). Profit before tax
climbed by 37.8 percent to CHF 43.6 million (2010: CHF 31.7
million, 2009: CHF 44.4 million). The cost / income ratio fell to
71.5 percent (2010: 76.7 %, 2009: 69.4 %). The net new money
inflow amounted to CHF 655 million (2010: CHF 1'023 million,
2009: CHF 682 million). Client assets posted an increase of
3.1 percent to CHF 13.8 billion (31 December 2010: CHF 13.3
billion, 31 December 2009: CHF 12.7 billion). The dynamic real
estate market in Liechtenstein and the east of Switzerland, our
active penetration of the market and our good advisory services
to clients prompted mortgage lending volumes to climb to
CHF 7.7 billion (31 December 2010: CHF 7.2 billion, 31 December 2009: CHF 6.8 billion).
36
37
«In our domestic markets of Liechtenstein
and Switzerland we take care of about 170'000
clients. They all expect us to provide modern
and reliable banking services at fair prices.
Rightly so, in my opinion!»
Urs Müller, Member of the Group Executive Board
and responsible for the Domestic Market Business Division
4-year trend
The continuing erosion of margins has again negated the steady
growth in lending volumes and client assets. This means that
the LLB Group must constantly invest in system automation
and improving the efficiency of business processes. Our market
is growing in line with the overall economy.
Development of operating income
2008 – 2011, in CHF thousands
153'145
2011
135'792
2010
163'069
2008
30'000
60'000
90'000
120'000
150'000
180'000
Development of profit before tax
43'637
2011
31'670
2010
44'367
2009
49'778
2008
10'000
20'000
30'000
40'000
50'000
60'000
Development of cost / income ratio
2008 – 2011, in percent
71.5
2011
76.7
2010
2009
69.4
2008
69.5
10
20
30
40
50
60
70
80
90
100
Review of operations i Domestic Market
144'965
2009
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Seite 38
Segment reporting
in CHF thousands
2010
+/– %
110'701
95'527
15.9
35'712
34'010
5.0
6'542
7'741
–15.5
190
–1'486
Total operating income
153'145
135'792
Personnel expenses
–53'146
–50'752
4.7
General and administrative expenses
–19'782
–25'239
–21.6
–6'463
–6'403
0.9
Net interest income
Net fee and commission income
Net trading income
Share of net income from investments in associates
Depreciation and amortisation
Value adjustments, provisions and losses
Services from / to segments
Total operating expenses
Business division profit before tax
2011
12.8
–1'613
–4'836
–66.6
–28'504
–16'892
68.7
–109'508
–104'122
5.2
43'637
31'670
37.8
Net new money (in CHF millions)
Growth of net new money (in percent)
2011
2010
655
1'023
4.9
8.0
71.5
76.7
31. 12. 2011
31. 12. 2010
+/– %
13'766
13'347
3.1
418
384
8.9
Additional information
in CHF millions
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Seite 39
International private banking has the potential for growth, but it faces great pressure for
change. Clients are cautious and expect services with added value. In 2011, the priority for
them was asset protection. We have enhanced
our taxation expertise, developed products for
specific target market countries and concentrated on building up our business presence in
the growth countries.
38
39
Structure
The International Market Business Division encompasses
the international private banking and wealth management
services of the LLB Group. We possess extensive and detailed
knowledge accumulated over many years in these business
areas. Through our brands «Liechtensteinische Landesbank» –
including LLB Switzerland and LLB Österreich – and «Jura Trust»,
we provide wealthy private clients with the benefits of our
experience and expertise. We offer them investment advice,
asset management, asset structuring and financial planning.
We place our focus on the markets in Germany, Austria, Italy,
Russia, Eastern Europe as well as the Near and Middle East.
We have business bases in Vaduz, Zurich, Lugano, Geneva,
Vienna, Abu Dhabi and Dubai.
Investments
2011 saw a continuation of the investment priorities we had
initiated in 2010. Since in future great flexibility and a consistent emphasis on client orientation will determine our position in the target markets, we again made investments in the
training of our staff, in the expansion of our teams and in
the quality and efficiency of our IT processes and operations.
We added 16 employees to our advisory teams in Vaduz, Zurich,
Geneva, Vienna and Dubai and improved the skills and competence of our client advisors. They not only have to identify
and fulfil changing client requirements, they must also keep up
to date with the latest regulatory provisions. Accordingly, we
took steps to enhance our Group-wide expertise in the complex
field of cross-border banking.
In July 2011, we supplemented our cross-border private
banking operations by opening a branch office in Geneva. In
pursuing our goal of expanding business in the emerging markets of Russia, Eastern Europe as well as the Near and Middle
East, we invested in developing country-specific products
and processes.
The Fuchsbriefe financial journal highlighted the continuity of our advisory quality in its rankings for 2012: the LLB was
awarded the very good 16th overall ranking from the 100 asset
managers tested in the German-speaking region, and moved
up to 19th on the «Perpetual Best» list.
The situation in the international private banking market remained tense in 2011. As a result of the turbulence on the capital markets, uncertainty was widespread among many clients
and in general their confidence in the financial services industry and the financial markets declined. Investors were primarily
interested in low-risk, and therefore low-margin, products. The
LLB Group increased its business capacity in Eastern Europe as
well as in the Near and Middle East. It was able to record good
growth in these regions. In total, the development of exchange
rates and the weak performance of the stock markets caused
the value of assets under management to fall.
Review of operations i International Market
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Seite 40
«Today, international private banking clients
are again increasingly seeking safe and reliable
partners. Our major shareholder, the Principality of Liechtenstein, is one of only sixteen
countries worldwide that has an AAA rating.
In total, operating income decreased by 1.9 percent to CHF
119.2 million (2010: CHF 121.5 million, 2009: CHF 142.7 million). Operating expenses rose by 8.3 percent to CHF 118.8 million (2010: CHF 109.7 million, 2009: CHF 119.0 million). At
CHF 0.4 million, profit before tax was substantially below the
value for the previous year (2010: CHF 11.8 million, 2009:
CHF 23.7 million). The decrease was largely attributable to value
adjustments, provisions and losses. The cost / income ratio
rose to 99.7 percent (2010: 90.3 %, 2009: 83.4 %). The gross
margin expanded by 2.9 to 85.3 basis points (2010: 82.4 basis
points, 2009: 92.9 basis points). Client assets fell by 7.0 percent to CHF 13.5 billion (31 December 2010: CHF 14.5 billion,
31 December 2009: CHF 15.0 billion). Net new money inflow
stood at CHF 216 million (2010: inflow of CHF 955 million,
2009: outflow of CHF 939 million).
We are therefore well positioned.»
Roland Matt, as Member of the Group Executive Board 2011
responsible for the International Market Business Division
4-year trend
In continuation of the trend in 2010, last year the Liechtenstein financial centre was able to further reduce the uncertainty
that was generated by the international taxation debate in 2008
and 2009. The LLB Group registered new money inflows. However, this growth was completely offset by the development
on the stock markets and the unfavourable exchange rates. Increasing regulatory requirements were also causing costs to
rise, which in turn had a negative impact on margins. We foresee further growth potential for the International Market
Business Division in the emerging markets, predominantly in
our target markets of Russia, Eastern Europe as well as the
Near and Middle East. By contrast, the traditional core markets
are stagnating.
119'188
2011
121'484
2010
142'709
2009
169'833
2008
30'000
60'000
90'000
120'000
150'000
180'000
2011
350
11'802
2010
23'658
2009
62'648
2008
10'000
20'000
30'000
40'000
50'000
60'000 70'000
2008 – 2011, in percent
99.7
2011
90.3
2010
83.4
2009
63.1
2008
10
20
30
40
50
60
70
80
90
100
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Seite 41
40
41
Segment reporting
in CHF thousands
2011
2010
+/– %
Net interest income
14'333
11'014
30.1
91'073
98'840
–7.9
Net trading income
6'812
6'723
1.3
Other income
6'970
4'907
42.0
119'188
121'484
–1.9
Personnel expenses
–64'507
–67'257
–4.1
–23'979
–22'740
5.4
–9'496
–9'929
–4.4
–12'732
–5'874
116.8
–8'124
–3'882
109.3
–118'838
–109'682
8.3
350
11'802
–97.0
2011
2010
216
955
1.5
6.4
99.7
90.3
Operating income / average assets under management (in basis points)
85.3
82.4
31. 12. 2011
31. 12. 2010
+/– %
13'467
14'474
–7.0
296
293
1.0
in CHF millions
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Seite 42
For years, the LLB Group's strategy funds have
been among the best in Europe. We are constantly expanding our investment expertise. The
implementation of the EU's UCITS IV directive
creates new opportunities for us to offer madeto-measure funds throughout the whole of
Europe and to withstand the consolidation pressure that is gripping Europe's fund industry.
Structure
The Institutional Market Business Division encompasses the
classic financial intermediary and fund business as well as
the asset management operations of the LLB Group. Together
with the three Group companies LLB Asset Management AG,
LLB Fund Services AG and LLB Fondsleitung AG, we concentrate
on fulfilling the requirements of professional investors and financial intermediaries. Fiduciaries, asset managers, fund promoters and investment undertakings attach great importance
to quality. At the LLB, we offer them comprehensive services
within the context of a one-stop boutique for the setting up and
management of private label funds as a custodian bank, as well
as a manager and provider of our own LLB funds. Our target
markets are Liechtenstein and Switzerland.
Investments
In 2011, we invested in the broadening and deepening of our
expertise as well as in the expansion of our research and analysis capacities.
The most important growth driver in the Institutional Market
Business Division is the fund services sector. This enables us
to provide tailor-made funds for independent asset managers
and other fund promoters. However, this business sector is extremely cyclical and its development is sharply dependent on
the performance of the financial markets. In 2011, clients were
restrained in their propensity to launch new funds; moreover,
individual redemptions of units in existing funds were registered. Nevertheless, we succeeded in increasing the number of
custodian bank mandates by 22 and therefore attained a rise
in the total number from 218 to 240. Accordingly, measured by
the number of mandates, the Liechtensteinische Landesbank
is the clear market leader in Liechtenstein. The total fund volume declined by 7.2 percent to CHF 8.6 billion.
Client assets decreased by 4.0 percent to CHF 18.1 billion
(31 December 2010: CHF 18.8 billion, 31 December 2009: CHF
17.2 billion). Net new money outflow amounted to CHF 64 million compared with net new money inflows of CHF 811 million
in 2010 and CHF 89 million in 2009. The low level of interest
rates had a negative impact on net interest income. Net fee and
commission income also came under pressure. In total, operating income declined by 9.3 percent to CHF 96.8 million (2010:
CHF 106.7 million, 2009: CHF 106.3 million). Operating expenses rose to CHF 96.5 million (2010: CHF 45.8 million, 2009:
CHF 26.3 million). This was largely due to the volume of value
adjustments, which increased to CHF 65.9 million. Year on year,
the business division profit before tax fell markedly to CHF 0.3
million (2010: CHF 60.8 million, 2009: CHF 79.9 million). The
cost / income ratio amounted to 99.7 percent (2010: 43.0 %,
2009: 24.8 %). The gross margin stood at 52.5 basis points
(2010: 59.2 basis points, 2009: 65.7 basis points).
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Seite 43
4-year trend
The Liechtenstein fund centre is now well established in Europe; its total fund volume is constantly expanding. Nevertheless, both the fund and custodian bank business operations
are strongly subject to market fluctuations. During weak market phases clients show restraint in launching new funds. In
Liechtenstein, trust business and the activities of external asset
managers are undergoing a structural consolidation. Against
the backdrop of the introduction of the EU's UCITS IV directive,
however, we regard prospects on the whole as being positive.
The law concerning certain undertakings for collective investments in transferable securities (UCITSG) came into force in
Liechtenstein on 1 August 2011. This law implements the provisions of the EU's UCITS IV directive. As a result, considerably
less time is required for the licensing of new fund products.
At the same time, fund management companies in Liechtenstein benefit from their eligibility for an EU passport.
42
43
«We benefit greatly from the attractiveness
of Liechtenstein as an investment fund centre.
As a leading provider, we offer our clients a
comprehensive service package.»
Urs Müller, Member of the Group Executive Board
and responsible for the Institutional Market Business Division
2011
96'783
2010
106'650
2009
106'253
145'581
2008
20'000
60'000
100'000
140'000
Review of operations i Institutional Market
2011
262
60'832
2010
79'930
2009
107'772
2008
20'000
40'000
60'000
80'000
100'000
120'000
2008 – 2011, in percent
99.7
2011
43.0
2010
24.8
2009
26.0
2008
10
20
30
40
50
60
70
80
90
100
20.03.2012
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Seite 44
Segment reporting
in CHF thousands
2011
2010
Net interest income
13'158
14'286
–7.9
73'673
80'217
–8.2
9'391
12'147
–22.7
561
0
Net trading income
Other income
+/– %
96'783
106'650
–9.3
–12'590
–13'976
–9.9
–2'653
–2'685
–1.2
–258
–67
285.1
–65'896
–15'864
315.4
–15'124
–13'226
14.4
–96'521
–45'818
110.7
262
60'832
–99.6
Personnel expenses
2011
2010
–64
811
–0.3
4.7
99.7
43.0
Operating income / average assets under management (in basis points)
52.5
59.2
31. 12. 2011
31. 12. 2010
+/– %
18'059
18'814
–4.0
79
80
–1.3
in CHF millions
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Seite 45
The Corporate Center steers, coordinates and
controls Group-wide business activities and
processes. In 2011, the operational start of the
Avaloq banking software system and the construction of a new building for the bank branch
in Eschen, Liechtenstein, with its «green» processing centre were the focus of activities. The
introduction of new Shared Service Centers
means that the Corporate Center has become
even more important as the service unit of
the LLB Group.
44
45
Corporate Center
Structure
The Corporate Center encompasses the Corporate Service
Center Organizational Unit, the Group Executive Management
and the Special Clients Unit. It supports our market-oriented
Domestic, International and Institutional Business Divisions in
conducting their activities and implementing their strategies.
The focus lies on functions in the areas of financial and risk
management, marketing and communication, trading and securities administration, payment services, human resources
management, legal services and compliance, corporate development, product management, logistics and information technology. The LLB Group's own financial investments are booked
to the Corporate Center.
Investments
In 2011, the LLB Group completed its largest investment project to date. On 1 January, the Avaloq banking software system
was put into operation at the Group's headquarters in Vaduz
and at LLB Switzerland in Zurich. Bank Linth had already installed the latest software version in November 2010. The construction of a new building for the bank branch in Eschen was
the main priority concerning real estate investments in 2011.
The branch building is scheduled for completion in the fourth
quarter of 2012. It is designed according to «Minergie» standards and the accompanying processing centre also complies
with the highest environmental criteria. At the same time,
we are reviewing and optimising the utilisation concepts for
our bank premises. In 2012, we aim to renew our membership
of the SIX Swiss Exchange. From the middle of 2012, the LLB
Group will bring together its payment services, trading and
securities administration functions in Shared Service Centers
at its headquarters in Vaduz. The setting up and operation
of these units means that the Corporate Center will become
even more important as a central service provider.
The volatile financial markets, the weakness of the euro and
the US dollar, as well as the persisting low level of interest rates
had an adverse effect. Furthermore, value adjustments on interest rate swaps had a negative impact on the financial statement. Consequently, operating income fell to CHF 35.8 million
(2010: CHF 73.0 million, 2009: CHF 135.4 million). Price gains
from financial investments at fair value through profit and loss
amounted to CHF 0.4 million (2010: minus CHF 0.3 million,
2009: plus CHF 33.2 million). Operating expenses totalled
CHF 62.3 million (2010: CHF 57.8 million, 2009: CHF 87.6 million). This increase is mainly attributable to the amortisation
of investments in Avaloq and the expenditure in connection
with the 150th anniversary celebrations. On account of the
loss posted in trading business, the segment loss before tax
amounted to CHF 26.4 million (profit in 2010: CHF 15.2 million, profit in 2009: CHF 47.8 million).
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20.03.2012
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Seite 46
4-year trend
Income from financial investments determines the business
result of the Corporate Center. At the LLB Group these are
booked directly to the profit and loss statement. Total headcount and therefore operating expenses have remained
stable over the last few years.
«The Corporate Center is becoming more and
more a competence centre for various func-
tions of the LLB Group. We must deliver these
services at competitive prices. Our perform-
2011
ance is assessed on this basis.»
2010
Dr. Kurt Mäder, Member of the Group Executive Board
and responsible for the Corporate Center
35'831
72'948
135'419
2009
2008
2'512
20'000
60'000
100'000
140'000
–26'431
2011
15'181
2010
47'817
2009
2008 –52'814
–60'000
–40'000
–20'000
0
20'000
40'000
60'000
Segment reporting
in CHF thousands
Net interest income
Net trading income
Net income from financial investments at fair value through profit and loss
Share of net income from investments in associates
Other income
2011
2010
+/– %
51'586
54'327
–5.0
8'426
10'964
–23.1
–28'937
898
449
–342
0
–1'534
–100.0
4'307
8'635
–50.1
35'831
72'948
–50.9
Personnel expenses
–50'850
–46'335
9.7
–41'657
–33'967
22.6
–19'960
–13'241
50.7
–1'547
1'776
51'752
34'000
52.2
–62'262
–57'767
7.8
–26'431
15'181
2011
2010
–235
–83
–7.5
–1.8
in CHF millions
31. 12. 2011
31. 12. 2010
+/– %
2'808
3'142
–10.6
330
330
0.0
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Seite 47
The bearer share of the Liechtensteinische
Landesbank is listed on the SIX Swiss Exchange.
In 2011, banking shares came under particular
pressure. The debt crisis of the euro countries,
exchange rate turbulence and the general decline
in confidence in financial institutions led to a
fall in share prices in Europe. The LLB bearer
share was not able to escape this trend and lost
43.2 percent.
46
47
LLB bearer share
Market capitalization
The LLB bearer share is listed on the SIX Swiss Exchange under
the symbol LLB (security number 3019524). In 2011, 2.05 million LLB bearer shares were traded there, which corresponds
to 6.7 percent of all shares issued. As at 31 December 2011, the
market capitalization of Liechtensteinische Landesbank AG
stood at CHF 1.3 billion with a total of 30.8 million shares.
Shareholders structure
In 2011, the Principality of Liechtenstein maintained its 57.5
percent of the LLB shares unchanged. As representative of the
majority shareholder, the Liechtenstein Government adopted
the strategy it had been pursuing in regards to the Principality's
investment in Liechtensteinische Landesbank AG. With the
enactment of the investment strategy a provision of the law
concerning the control and supervision of public companies
(ÖUSG) of 2009 was implemented. The Government explicitly
supports LLB as a listed company and is committed to keeping
its majority equity stake of at least 51 percent.
At the end of the report year, LLB held 7.7 percent of its own
shares, 4.5 percent were held by Thornburg Investment Management Inc. and 0.1 percent by the members of the Board of
Directors and the Board of Management. All remaining shares
were in free float as at 31 December 2011, whereby none of
the other shareholders held more than 3 percent of the share
capital.
Share performance 2011
During the last five years, the LLB bearer share had outperformed its banking peer group. It even remained stable until the
end of August 2011, despite volatile financial markets, and performed better than the European sector index. The LLB bearer
share oscillated between CHF 70.– and CHF 80.–. Following the
publication of the unsatisfactory interim financial result and,
ultimately, the information about the value adjustment at the
end of September, the bearer share clearly lost in value. It finished 2011 at an exchange rate of CHF 41.50, that is, down
43.2 percent. Comparatively, the Stoxx Europe 600 Banks Index
in CHF lost 34.2 percent and the Swiss Performance Index
(SPI) 7.7 percent.
In 2011, the total return of the LLB bearer share stood at
–40.7 percent (2010: 10.8 %). An investor who had invested
CHF 1'000.– at the end of 2001 realised a loss of CHF 213.80
by the end of 2011. However, with a return on equity of –2.4
percent per year the LLB bearer share outperformed the European sector index, which stood at –7.9 percent.
The development of the LLB bearer share reflects the larger
world situation. After a positive start by the financial markets
in 2011 investors were unsettled by the nuclear catastrophe
in Japan, the Arab Spring and the conflicts in the Near East. Although financial markets had recovered by the end of May, weak
economic data, an aggravation of the European debt crisis and
debates about the debt ceiling in the USA clearly put shares
under renewed pressure.
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Seite 48
In the second half of 2011, continuing government debt in
Greece as well as Italy's and Spain's financial instability caused
a further loss of trust. Towards the beginning of October, the
international stock markets reached their lowest point, whereby losses in Europe were higher than in the USA and in Asia.
In 2011, many bank shares were hit particularly hard by international events. Furthermore, economic instability, exchange
rate problems and greater risks in the loan business weighed
on financial institutions. In the wake of the debate about systemic relevance and the «too big to fail» discussion, a number
of international banking groups had to review their business
structures, raise new capital and revise their earnings targets
downwards.
Dividend policy
The Liechtensteinische Landesbank pursues an attractive longterm dividend policy for its shareholders. Accordingly, dividend
per LLB share has steadily increased in the past. The payout ratio
ranged from 40 percent (2007) to 89 percent (2010) of the net
profit. At the same time, the LLB Group is, however, obliged
to maintain its financial security and stability. In view of the unsatisfactory business result in 2011, the challenging economic
environment and the objective to strengthen the equity base,
the Board of Directors decided to propose a dividend of CHF 0.30
(2010 and 2009: CHF 3.40) to the General Meeting of Shareholders on 4 May 2012. This corresponds to a payout ratio of
55.3 percent for 2011. The dividends amount to CHF 8.5 million.
Analysts' assessment
In 2011, the LLB bearer share was monitored by analysts from
the following banks, who regularly published studies and assessments of LLB: Bank Vontobel, MainFirst, UBS and the Zürcher
Kantonalbank.
Over the course of 2011, one analyst rated the LLB bearer
share from «hold» to «sell». Three analysts kept their rating unchanged at «hold» throughout the whole year.
Communication with the capital market
By engaging in an open and ongoing dialogue with investors,
analysts and representatives of the media the LLB Group aims
to provide them with an up-to-date picture of the opportunities and risks relating to our business activities. As a listed company, we are obliged to publish important price-relevant information, including ad hoc information about exchange-relevant
transactions by means of media communiqués to all stakeholders. We therefore inform shareholders, clients, employees
and the public simultaneously, comprehensively and regularly
about our business performance, value drivers as well as our
strategy and provide them with an overview of our key financial and operational figures. The aim is to ensure that the price
of the LLB bearer share fairly reflects the value of the company.
The LLB Group publishes annual and interim financial
reports, part of which were media and analyst conferences as
well as conference calls. At the General Meetings of Shareholders, the Board of Directors and the Board of Management
provide transparent reporting. Moreover, in the course of the
year we have regular discussions with investors, inform the
public within the scope of road shows and participate in conferences for financial analysts and investors.
All publicly accessible information about the LLB Group can
be accessed at our website www.llb.li. The public is welcome
to register for electronically provided exchange-relevant information about the LLB Group (www.llb.li/registration). The annual and interim financial reports are published by us in printed
form and have also been available in a comprehensive online
version with numerous additional functions since 2005. The
websites to access the 2011 annual report are as follows: German: gb2011.llb.li; English: ar2011.llb.li.
Dividend per share
2007 – 2011, in CHF
2011
0.30 *
2010
3.40
2009
3.40
2008
3.40
2007
3.40
0.5
1
1.5
2
2.5
3
3.5
4
Share performance
31. 12. 2011
31. 12. 2010
Number of shares eligible for dividend
28'415'624
28'500'000
Free float (number of shares)
10'715'624
10'800'000
Year's high (22 February 2011 / 16 April 2010)
80.95
83.70
Year's low (12 December 2011 / 29 June 2010)
38.50
65.00
Year-end price
41.50
73.00
Performance LLB share (in percent)
–43.2
5.9
–7.8
–1.7
Performance Stoxx Europe 600 Banks in CHF (in percent)
–34.2
–11.6
Average trading volume (number of shares)
8'065
7'505
Performance SMI (in percent)
Market capitalization (in CHF billions)
1.3
2.2
Earnings per LLB share (in CHF)
0.38
3.61
Dividend per LLB share (in CHF)
* 0.30
3.40
55.3
89.0
0.7
4.7
Payout ratio (in percent)
Dividend yield at year-end price (in percent)
* Proposal of the Board of Directors to the General Meeting of Shareholders on 4 May 2012.
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Seite 49
The brand «Liechtensteinische Landesbank»
connects us with our clients and within our
Group of companies. Our images tell stories
from an interesting country – our country.
Our brand characterizes us as a reliable partner with a convincing performance worldwide. In 2011, we supplemented our brand
with a logo. For a whole year – the year of our
150th anniversary.
48
49
Brand and sponsoring
Brand strategy
Almost five years ago, the Liechtensteinische Landesbank –
a universal bank with its core competencies in private banking,
asset management, fund services and trust services – was
merged into one brand. The brand «Liechtensteinische Landesbank» points towards expansion into new markets. Furthermore, it incorporates the interplay between the many facets
of our Group and is a central part of our corporate and growth
strategy. Our brand strategy is continually being developed
further.
In the year 150 after the foundation of our bank we developed an anniversary logo that embodies what we meant and
mean to the Principality of Liechtenstein, our clients, shareholders and staff: «150 Years of Looking Forward». We underscored this with an image campaign in both Switzerland and
Liechtenstein. Moreover, the Liechtenstein Post issued a stamp
honouring the Liechtensteinische Landesbank. Embedded in
the stamp is a «Quick Response Code», which can be read by
smartphones and connects users with the LLB anniversary
website.
On the occasion of our 150th anniversary we published a
book entitled «Im Wandel beständig. 1861–2011» (Consistent
in change). We did this because those who want to read the
future must also leaf through the past. The authors are renowned historians from Liechtenstein and Switzerland. The
foundation of the Liechtensteinische Landesbank as «Zins- und
Credit-Landes-Anstalt im souverainen Fürstenthume Liechtenstein» marked a milestone on Liechtenstein's road to economic
modernisation. The Bank stood at the start of all the reforms
that ensued after Liechtenstein's first constitution of 1862.
At numerous events in 2011, the brand «Liechtensteinische
Landesbank» underscored the close ties between the Principality, Liechtenstein's eleven municipalities and the Bank. 150
years – five generations of mutual trust between clients and
their bank. 150 years – that also means five generations of acting responsibly towards people, resources, risks and opportunities in their times.
Brand components
The world in which we operate is the real world filled with real
people. For that reason we are a bank where people listen,
find solutions and advise. As the Landesbank we are partners
of the Principality of Liechtenstein and its inhabitants, serving
private clients, corporate clients and private banking clients.
At the same time, we are growing in Switzerland and expanding into new markets worldwide. We stand for commitment,
loyalty and trust. We act for the long term and remain consciously true to our conservative values. We provide security in
order to make progress possible – for generations to come.
The design of our brand is therefore classic and modern.
The clear geometry of the logo stands for security and stability.
The angles projecting beyond the basic shape symbolize our
openness. The colour green signals our origin, and the red
square core stands for our focus on what is essential and our
partners.
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Seite 50
In a brand rating survey conducted by the Swiss economic
journal «Bilanz» the brand is valued at CHF 301 million. The
Liechtensteinische Landesbank therefore ranks tenth among
the most valuable Swiss banking brands. The brand is known
by everyone in Liechtenstein, and in eastern Switzerland as
far as Lake Zurich it is steadily growing in stature. In addition,
the Group operates two further brands: Bank Linth and Jura
Trust.
In 2011, the LLB Group invested in a modern, interactive Internet presentation that facilitates internal and external communication. Such an overview provides orientation. This is also
true for the revised brand profile of our subsidiary Bank Linth
with its 163-year tradition. The Bank is well on its way to becoming one of the leading banks of eastern Switzerland. As
the first financial institution in Switzerland Bank Linth consistently meets its customer needs through «simplicity in banking». Excellent service, clearly and comprehensibly communicated, turns clients into equal partners.
Brand architecture
Core competencies of the LLB Group *
LLB Group companies
Retail and
Corporate Banking
Private Banking
Asset
Management
Fund
Services
Trust
Services
LLB AG
LLB (Switzerland) Ltd. (100 %)
LLB (Österreich) AG (100 %)
Bank Linth LLB AG (74.2 %)
LLB Asset Management AG (100 %)
LLB Fund Services AG (100 %)
LLB Fondsleitung AG (100 %)
Jura Trust AG (100 %)
* Primary core competencies.
Brand management
2011
Bank Linth
◆ Image campaign 150th anniversary
◆ Project «Profil»: «Banking made easy»
◆ New Internet presence
◆ New branch offices in Erlenbach and Winterthur
◆ Design in compliance with our brand
◆ Geneva bank branch
Trademark protection
2011
◆ Registered in the trademark
registers of Liechtenstein
Switzerland, Germany, Austria,
the Benelux countries, the Czech
Republic, France, Italy, Hungary,
Poland, Rumania, Russia, Slovenia
and Slovakia
Bank Linth
◆ Registered in the trademark register
of Switzerland
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Seite 51
Communication platform «Sponsoring»
The LLB Group's concept of addressing clients, business partners
and staff outside of work is a key strategic brand management
factor. Advances in technology in the banking business and
more intense competition mean that clear positioning through
sponsoring is becoming increasingly important. Our mission
statement is: «We take care of each client. At home and around
the world. Personally, as partners, committed and competent.»
Our communication targets are aligned with our brand's key
themes: «We are partners around the world. We are partners in
performance. We are partners in success.»
As a universal bank we take our social responsibility very
seriously and sponsor public events. We support social and
ecological projects as well as the sustainable health promotion
of people living in Liechtenstein. Sports sponsorship is just as
much a part of our corporate philosophy as our commitment
to culture and education. Maintaining a balance between client
service and social responsibility is important for us. By foregrounding project sponsorship as support we underscore the
principle that each project retains its independence regarding
content and organisation.
In 2011, the Liechtensteinische Landesbank invested
CHF 960'000.– in projects in Liechtenstein, and Bank Linth invested CHF 650'000.– in projects in Switzerland. This is quite
apart from the long tradition within our Group of making
donations. In this way, LLB has supported charitable and social
organisations for more than 30 years. In 2011, the range of
beneficiaries encompassed 19 charitable institutions.
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51
Sponsoring activities
Social projects,
ecology and education
LLB
◆ «Holzkreislauf» Association
www.holzkreislauf.li
◆ Helpmail / Association NetzWerk
www.helpmail.li
◆ Liechtenstein Medical Association
www.gesundesliechtenstein.li
◆ «aha – tips and information for
young people»
www.aha.li
Sports
◆ Beach volleyball –
Culture / education
◆ Adult Education at Stein Egerta
www.steinegerta.li
CEV Satellite Vaduz
www.beachvolley.li
◆ Balzers Operatic Society
www.operette-balzers.li
◆ FC Vaduz
www.fcv.li
◆ «Schlösslekeller» Theatre
www.schloesslekeller.li
◆ Nordic Club Liechtenstein
www.nordicclub.li
◆ Vaduz Film Festival
www.filmfest.li
◆ Städtlelauf Vaduz
www.lcv.li
◆ Our events «im Hof»
www.llb.li
◆ «Riding your bike for your
Association
www.vcl.li
Bank Linth
◆ Forum Vogtei, Herrliberg
www.forumvogtei.ch
◆ ZHAW Study «Schweizer Wohlstand zwischen Vergangenheit
und Zukunft», Winterthur
www.zhaw.ch
◆ Rapperswil-Jona Lakers,
◆ Kulturtreff (cultural meeting)
Ice Hockey
Rotfarb, Uznach
www.lakers.ch
◆ Pfadi Winterthur, Handball
www.rotfarb.ch
◆ Lachfestival, Lachen
www.pfadi-winterthur.ch
www.schwyzkultur.ch
◆ Massiv Bank Linth Skatepark
Glarnerland
www.massivskatepark.blogspot.com
◆ Wake the Lake, Weesen
www.cablewakeboardweesen.ch
LLB Switzerland
In 2011, LLB (Switzerland) supported the following
institutions:
Charity activities
For eight years LLB (Switzerland) Ltd. has been offering its
customers the opportunity of doing good and being socially active. The Bank waives 30 percent of its brokerage and administration fees on the portfolios that are administered by the
Charity Desk. Our clients decide which charitable foundations
and organisations to support with their donations.
One example of aid to promote self-help is the Girls' Basic
Productivity Training Center, Thotlapalli, in the Kadapa Region
in India. It is a project of the Village Reconstruction Organisation
VRO Switzerland, Basel, which for three years received a payment of CHF 60'000.– from a foundation.
◆ Swiss Association of Paralysed People, www.aspr-svg.ch
◆ Green Cross Switzerland, www.greencross.ch
◆ SOS Children's Village, www.sos-kinderdorf.ch
◆ Winterhilfe Schweiz, www.winterhilfe.ch
◆ SILVIVA Foundation for the Education of the Environment
and the Forest, www.silviva.ch
◆ Village Reconstruction Organisation Switzerland (VRO)
www.vro.ch
Future Foundation
To mark its 150th anniversary the Liechtensteinische Landesbank founded the Future Foundation in May 2011. It focuses
on promoting and supporting projects and people who, through
their commitment to environmental and social issues, create
future opportunities for others (see chapter «Social and ecological sustainability», page 57).
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health» – Liechtenstein Transport
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Employees
The success of the Liechtensteinische Landesbank is based on the strengths of our employees.
They repeatedly act as catalysts for innovation
and change. We promote such values as commitment, trust as well as openness and create
an environment for promoting the development
of the people within our Group. Competence
centres ensure our competitiveness.
Human resources strategy
«Only those things that change stand the test of time.» This
principle shapes the corporate culture of the internationally
oriented Liechtensteinische Landesbank. Clients who are more
discerning, new regulations and more stringent risk management practices determine to a large degree what the bank of
the future will be. Against this backdrop, it is decisive to pool
knowledge and skills, to standardize services and processes,
to network with clients and services in order to plan with foresight. Business success will heavily depend on recruiting and
retaining the best and most talented people. This will only be
made possible through the provision of interesting work, a respectful corporate culture and opportunities for staff development. At the same time, employees need to learn to adapt to
the ever-accelerating pace of work and increases in information density. The LLB Group accepts the challenges of the work
world of tomorrow and views change as opportunity.
Shared Service Centers
Since 2010 our employees have had to face the challenge of
gradual change. Due to their expertise, commitment and
motivation we have succeeded in equipping our Group with
the standardized Avaloq core banking software. One of the
main objectives of the platform is to group central services
into competence centres and to make greater use of Groupwide synergies.
In a second stage, the LLB Group will unite Payment Services, Trading Services and Securities Administration in Shared
Service Centers at the headquarters in Vaduz starting mid2012. The rationalization of resources will produce savings of
CHF 3 million and lead to an improvement in the quality of
services. As a result of the consolidation of resources and services 27 workplaces will be rationalized. Shared Service Centers
will increase efficiency and the transfer of know-how throughout the Group.
The trend to Shared Service Centers within our Group will
continue growing in importance. The Group-internal pooling
of resources and services has enormous strategic potential:
on the one hand, in regard to cost optimisation as well as to
the quality improvement of management and support processes and, on the other hand, in regard to the concentration
of expert knowledge in the Centers of Excellence.
Headcount
A staff survey conducted in 2010 shows that the employees of
the LLB Group closely identify with their company. The Bank's
150th anniversary in 2011 confirmed this close sense of belonging: on Group Day, the employees of our banks in Liechtenstein, Switzerland, Austria, Germany and from 27 other nations were all «in the same boat» on Lake Constance, together
with the members of the Board of Management and the Board
of Directors.
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52
53
LLB Group headcount statistics
2011
2010
2009
2008
2007
Employees
Number of employees (full-time equivalents)
1'123
1'087
1'054
1'010
615
Full-time employees
923
906
883
850
517
Part-time employees
367
347
337
329
109
Apprentices
50
52
52
53
26
BEM interns
4
6
6
6
5
Trainees
3
1
1
2
1
13.1
12.5
9.7
11.6
7.2
8.9
8.0
7.8
7.5
8.9
39.6
39.3
39.3
38.8
39.3
Number of nations
30
26
28
Share of women in percent
47
48
49
49
42
1'167
1'902
1'955
2'341
3'083
Key figures
Staff turnover rate in percent
Average length of service in years
Average age in years
Diversity and equal opportunities
Training and professional education
The LLB Group employed 1'290 employees as of the end of
December 2011, of whom 635 worked at the parent bank in
Vaduz. The Group-wide number of workplaces increased by
3.3 percent (2010: increase by 3.1 percent to 1'087). In 2011, the
overall staff turnover rate reached 13.1 percent (2010: 12.5 %,
2009: 9.7 %).
Investments
In the 2011 business year, Liechtensteinische Landesbank AG
invested CHF 1.2 million in training and professional education.
A substantial proportion of the workshops and courses were
held within the Group: 47 percent (2010: 71 %, 2009: 48 %).
Professional training and education
Fostering young talent
Qualified and high-performing employees are a strategic success factor. We are very interested in their continuing development as skilled employees, as managers and as individuals.
The Liechtensteinische Landesbank traditionally trains a number of its junior employees itself. In 2011, three professional
trainers were responsible for 57 junior employees. The excellent dual education in theory and practice provides them with
a solid basis for lifelong learning. We are strong believers in a
broad education, especially in view of the fact that it offers
young people in the vocational education and training system
the option of later attending a traditional university or university of applied sciences.
This is also true for new employees coming directly from
secondary school or after having passed their final school leaving examinations. At the bank, they work and study towards
the BEM certificate of the Swiss Bankers Association (Schweizerische Bankiervereinigung). The LLB Group also provides university graduates with the opportunities to start a career in
banking. They attend an individually customized trainee programme, which prepares them for their future work. These
young talented people acquire their basic knowledge at the
Center for Young Professionals in Banking (CYP), the competence and training centre for Swiss banks, or at the Bankenberatungszentrum St. Gallen. Further professional and personal
skills are trained using internal modules.
Professional training
Further education is an important instrument of corporate development within the LLB Group. We view the costs incurred
as an investment in the future.
Our good reputation as an attractive employer is part of
our tradition. In accordance with our principles, we ensure that
the right employees receive effective vocational training at the
right time. We thereby place great emphasis on practical relevance and on equal opportunities for all employees.
Workplace education is a key and continuing task of any
supervisor or manager. In 2011, a number of courses were held
internally at the Bank: seminars for client advisors in the areas
of asset management and financial planning, leadership training in the area of human resource management as well as
courses on the important future topic of «cross-border banking». Using e-learning, our employees train to become expert
users of the new Avaloq system.
Professional education
Our specialists regularly participate in continuing education
events at the University of Liechtenstein. In 2011, special topics
included: the current development of Liechtenstein's international tax cooperation, changes in the law in Europe regulating the distribution of financial products, adaptations to due
diligence law, banking and financial market law, foundation
and trust law, private banking and international asset management.
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Training costs in CHF thousands
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Together with the University of Liechtenstein the Liechtensteinische Landesbank organises the specialist conference
«FinanzPerspektiven» (Financial perspectives), which focuses
on current financial and economic topics. The focus in 2011
was on developments in corporate pension provisioning. About
one third of the funds we invest in education and training is
allocated for continuing education and training.
Diversity
We know from experience that a diverse personnel structure
is economically more successful. Although we do not have an
official programme to promote diversity, different nationalities
working together have been commonplace at our Group for
many years. Every day, numerous skilled professionals commute
from eastern Switzerland, the Austrian state of Vorarlberg,
and southern Germany to their work at the Liechtensteinische
Landesbank. We aim to create an environment of mutual respect and appreciation for all employees, regardless of their
nationality, age, gender etc.
As an international company we are represented in markets
in Europe, the Near and Middle East. In an increasingly globalised world we take care to ensure that our customer base is
reflected in our workforce.
At 47 percent, the proportion of women working for us is
relatively high. In leadership positions, though, women are still
underrepresented. However, such factors as demographic transformation and the growing number of well-educated women
are bound to affect change in this area in the next few years.
This also holds true for senior employees, who guarantee that
expertise is passed on. The principle of equal opportunities
for women and men is a cornerstone of our corporate culture.
The LLB Group employs people from 30 nations.
Remuneration
We strive to pay competitive and performance-related remuneration in order to recruit and retain qualified employees for
our Group. Our salary model is aligned with customary market
values in the banking sector. We rate the salaries of women
and men in the same position and at the same performance
level equally.
Against the backdrop of the challenging economic climate
and in view of the impact of the financial and economic crisis
the LLB Group has implemented stricter cost-saving measures.
The Board of Management nevertheless raised the sum of salaries by 1.5 percent as at 1 July 2011. The majority of the employees of the Liechtensteinische Landesbank were awarded a
salary increase in recognition of their exceptional contribution
to the implementation of the Avaloq banking software. In the
years 2009 and 2010, salaries had only undergone limited adjustments.
Remuneration consists of three components: a basic salary,
variable compensation (profit share) based on Group performance, as well as additional benefits. Once a year, basic salary
levels are verified. Amendments are made if an employee's remuneration is not commensurate with his / her function, work
experience, skills or performance.
Representation of employees
One of our aims is to be a responsible and fair employer. Since
1999 a corporate-internal employees association («Arbeitnehmervertretung») at our parent bank has actively fostered
dialogue with our female and male colleagues on the one hand
and corporate Management on the other. The association
has a mediating function, which will gain in importance in the
future. It will increasingly make use of its rights both to have
a say in company matters and to access information in order to
promote employee interests and to support the Board of Management in the planning of various measures.
In collaboration with the Group Human Resources Department, the employees association is, among other things,
concerned with the further development of corporate health
management and represents the employees in the parking
spaces committee. The employees association consists of representatives of the business divisions and business units.
Outlook
The banking and finance sector is subject to constant change.
Our professional human resource management ensures that
the LLB Group keeps pace with developments and continues
to position itself as an attractive employer, enabling us to
choose and retain the right staff for the challenges of tomorrow and to continually provide the company with a valuable
new impetus through targeted personnel development. On
the one hand, we have to adapt our staff portfolio to current
market conditions; on the other hand, it would not be wise
to lose sight of long-term tendencies. Using appropriate tools,
our human resources department contributes to securing the
implementation of our corporate strategy.
In 2012, we aim to increase competence and performance
through optimised management processes and staff promotion.
A new transparent remuneration scheme will be introduced
to make sure that performance pays for our employees. In
order to save time and resources, we intend to further automatise human resource management at the Liechtensteinische
Landesbank.
Our leading theme is: «Fordern und fördern» (Challenge
and promote). We will strengthen our performance-oriented
corporate culture further in 2012. In conjunction with this, we
will give our staff more responsibility and compare their work
performance and potential with the future requirements of
our Group.
Well-educated client advisors who advise private clients
on an individual basis provide a decisive economic advantage today, and that is why we are going to invest in their qualifications with even more intensive training programmes.
Equally important is the training and development of managers. Despite the growing complexity and speed of business
processes, the heightened competition of global markets
means that managers have to be able to deal even faster with
new economic factors. In future, corporate and manager development will be closely integrated in the LLB Group. We require
proactive and creative managers who increasingly focus on
expanding potential in a targeted manner and on the values of
their colleagues.
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Developments in the world economy as well
as the regulatory changes resulting from
the global financial and economic crisis will
continue to have a significant impact on
the banking centre Liechtenstein. In view
of the dynamic environment, we anticipate
that the future will be challenging. As a
long-term oriented company we meet such
challenges with foresight.
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55
Regulatory framework
and developments
International standards
Tax information exchange agreements
Liechtenstein wants to strengthen its profile as a professional
centre for internationally oriented, innovative and sustainable
banking transactions. From a regulatory perspective, this will
require maintaining the attractiveness of the business location
and securing the stability of operating conditions. Above all,
Liechtenstein can draw upon its traditional values, such as its
overall economic and political stability, high standards of professional training and education and its positioning in private
banking, which has evolved over the years.
The banking centre is affected by the more stringent international requirements in the core business of cross-border
private banking. Politicians and market participants are taking
appropriate action to reduce uncertainties. Through the
«Liechtenstein Declaration» of 12 March 2009 the Principality
of Liechtenstein commits itself to the global OECD standards
on Mutual Administrative Assistance in Tax Matters.
By the end of 2011, Liechtenstein had signed tax information exchange agreements (TIEA) or double taxation agreements (DTA) on bilateral mutual administrative assistance in
tax matters with two dozen countries. These agreements are
in accordance with the OECD Model Tax Convention. One such
agreement ensuring mutual legal, planning and investment
certainty was signed with the Federal Republic of Germany in
November 2011. Liechtenstein had already concluded a tax
agreement with Great Britain in 2009, which provides for a limited disclosure programme for persons liable to UK taxation
until the beginning of 2015. Banking secrecy will remain intact,
however, even after the adoption of the OECD standards.
In October 2011, the Liechtensteinische Landesbank created a competence centre for tax matters («Kompetenzzentrum
Steuern») in order to keep pace with the constant changes in
tax legislation of the target markets. Bank-internal information
platforms provide employees with important data about the
tax systems of the LLB key markets.
Cross-border banking
In order to comply with foreign laws financial providers are required to implement comprehensive measures. These include
the assessment, limitation and monitoring of legal and reputational risks. Against this backdrop, the banks of the LLB Group –
LLB Vaduz, LLB Switzerland, LLB Österreich and Bank Linth LLB
AG – issued country-specific good practice guidelines for their
staff. Training courses on cross-border banking were held at
locations in Vaduz, Zurich, Vienna, Dubai, Lugano and Geneva.
The Liechtenstein and Swiss banks have a primary interest
in the implementation of and compliance with the cross-border
banking regulations. This interest is shared by the Swiss Financial Market Supervisory Authority (FINMA) and the Liechtenstein Financial Market Authority (FMA), which have conducted
and announced investigations. The requirements help the LLB
Group to further improve its services and activities. In addition,
we ensure a higher level of legal certainty for our clients, Bank
and staff.
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Additional obligations due to FATCA
The US Foreign Account Tax Compliance Act (FATCA) obliges
financial institutions worldwide by agreement to identify US
customers and to disclose their assets and revenues to the Internal Revenue Service (IRS) of the United States. The information goes beyond the applicable provisions of the Qualified
Intermediary Regime (QI). The US Treasury Department and
the IRS have postponed the introduction of the law to 1 January 2014. The publication of the final FATCA directive and the
FATCA agreements is planned for summer 2012. On 1 January
2013, the IRS will implement an electronic applications procedure for the status of Foreign Financial Institution (FFI). Applications received by 30 June 2013 will be given a status as
Participating FFI (PFFI) effective on 1 July 2013.
FATCA creates a lot of additional administrative work for
financial institutions with US customers. The LLB Group is
planning to conclude a FATCA agreement with the IRS, which
will require the LLB Group to automatically report accounts
it manages for US citizens and US controlled foreign legal entities. Financial institutions that do not cooperate will be charged
a 30-percent withholding tax on all payments from US sources
(withholding payments).
Challenge: agreement on a final withholding tax
In autumn 2011, Switzerland and the Federal Republic of Germany as well as Switzerland and Great Britain signed new tax
agreements. The aim is for the agreements to come into force
on 1 January 2013. In the case of retrospective taxation of existing banking relationships, customers will have the possibility of anonymously paying a one-off flat rate tax or of disclosing their accounts. Future investment income and capital gains
will be subject to a final withholding tax; after payment of the
withholding tax, the tax liability in the country of residence will
be deemed to have been met. Customers are able to regulate
their assets, and the banks can exercise their duty of loyalty to
long-standing clients.
Liechtenstein intends to negotiate an agreement with
Germany which is equivalent to that with Switzerland and which
enters into law at the same time in order to preclude a regulatory divide between the two financial centres.
Regulatory environment
Deposit and investor protection
After the financial crisis the most important industrialized countries and emerging economies agreed on reforms to increase
the stability of the financial system. For example, the new
Basel III directives on equity structuring have to be transposed
into national law by 1 January 2013. The Liechtensteinische
Landesbank has already widely implemented these Basel capital and liquidity directives.
Efforts by the European Union have a direct impact on the
EEA member state Liechtenstein. Investor and consumer protection is important for private banking and the private client
business. Bank deposits and investments in Liechtenstein are
protected by the Deposit Guarantee and Investor Protection
Foundation (Einlagensicherungs- und Anlegerschutz-Stiftung)
of the Liechtenstein Bankers Association (LBA). Accordingly,
private client deposits of up to a maximum of CHF 100'000.–
are guaranteed. Additionally, LLB is the only Liechtenstein bank
with a state guarantee on savings deposits and medium-term
notes. The guarantee is anchored in Art. 5 of the Law of 21
October 1992 concerning the Liechtensteinische Landesbank.
Furthermore, the legal situation in Liechtenstein conforms to
the international regulatory requirements of the EU, which
aim to improve the integrity and transparency of the financial
system as well as investor protection in the European financial
market. The financial centre Liechtenstein implemented the
Markets in Financial Instruments Directive (MiFID) on 1 November 2007. The EU Commission has meanwhile been working
on proposals for a more far-reaching regulation of financial
markets and investment services. MiFID II is part of a comprehensive European regulation agenda in the financial sector.
This also includes proposed regulations on market infrastructure and market activities: the European Market Infrastructure
Regulation (EMIR) and the Market Abuse Regulation (MAR).
The Liechtensteinische Landesbank is closely monitoring this
development.
Improvements for EU funds
As one of Liechtenstein's largest fund providers, the LLB Group
continually monitors the competitive situation in Europe. The
law on undertakings for collective investments in securities
(UCITSG; UCITS: Undertakings for Collective Investment in
Transferable Securities) and the concomitant provision, which
contain new regulations governing the distribution of funds
in the EU, have been in force since 1 August 2011. The law improves investor protection, reduces administrative barriers and
increases the efficiency of cross-border sales. Fund providers
profit from an accelerated time to market, substantially shorter
approval deadlines and a standardized approval process. Furthermore, the EU passport enables management companies to
operate funds in the whole European Economic Area (EEA) without having to establish branch offices in individual countries.
LLB Fund Services AG can also manage and market funds
that are subject to the law of another member state of the
EU / EEA in a simplified notification procedure. The simplified
prospectus is being replaced by a Key Investor Information
Document (KIID). As early as 2012, the EU will probably pass
new regulations relating to the rights and obligations of custodian banks as part of the UCITS V directive.
The Alternative Investment Fund Managers (AIFM) directive will have to be transformed into national law by July 2013.
The aim of the directive is, inter alia, the regimentation of
private equity funds and hedge funds, and also of non-harmonized funds, i. e. non-UCITS funds, which are aimed at professional investors, institutional investors and wealthy private
persons. Management companies of non-UCITS funds will have
to comply with stricter requirements for risk management
and compliance. UCITS-IV-conform management companies
already meet high organizational requirements. The adjustments will probably not prove to be problematic.
New FATF recommendations
In February 2012, the Financial Action Task Force (FATF) reformulated some of its recommendations on combatting money
laundering and the financing of terrorism (40 recommendations plus 9 special recommendations). One item is: serious
tax offences will in future be considered predicate offences for
money laundering. This means that in cases of reasonable
suspicion financial intermediaries are obliged to report these
to the national money laundering reporting office. In the second half of 2012, Liechtenstein will undergo a country assessment by Moneyval, the Committee of Experts of the Council
of Europe. As part of this assessment, experts of the International Monetary Fund (IMF) will review the implementation
of the FATF recommendations.
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We are committed to a sustainable management concept. Economic practices for us invariably include social and ecological aspects. At
the heart of corporate environmental protection
is the optimisation of resource consumption.
With the foundation of the «Zukunfsstiftung der
Liechtensteinischen Landesbank AG» (the Future
Foundation of Liechtensteinische Landesbank
AG) we have set a further example of social
responsibility.
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57
Social and ecological
sustainability
Entrepreneurial actions
The Liechtensteinische Landesbank has been firmly rooted in
Liechtenstein for one and a half centuries. The Bank has proven
to be a reliable partner for the people and the economy. Establishing a balance between the economy and social responsibility has been one of our objectives since our foundation in 1861
and is also part of our statutory mandate. At the same time,
ecology is becoming increasingly important. We raise our employees' awareness of the daily contributions they can make
to implanting the sustainable entrepreneurship of LLB in the
target markets.
Appropriate risk management is part of the self-image of
the LLB Group. In 2011, the Liechtensteinische Landesbank established a new risk management organisation, and the role
of the chief financial officer was upgraded.
Our corporate culture is embraced with the same consistency too. Quality and transparency, performance and responsibility determine the high quality level of corporate governance,
which the Board of Directors is continually developing further.
The good relations with our employees and business partners
as well as our commitment to the environment and society are
part of our corporate strategy.
The legal basis for the sustainable business activities of
the LLB Group, which is listed on the SIX Swiss Exchange, is the
investment strategy of the Government of the Principality of
Liechtenstein of 22 November 2011. Thereby, the requirements
of the Corporate Governance Law of 2010 were implemented.
As majority shareholder, the Principality of Liechtenstein explicitly supports the Group's listing on the stock exchange and
accepts the corporate autonomy of the Board of Directors. In
2011, the economic contribution – dividends and direct taxes –
of the Liechtensteinische Landesbank amounted to CHF 87.0
million.
Future Foundation
«150 Years of Looking Forward» – this leading theme marking
the 150th anniversary of the Liechtensteinische Landesbank
in 2011 – applies to both past and future generations. Future
generations will judge us on whether we take responsibility for
our actions now. With the foundation of the «Zukunftsstiftung
der Liechtensteinischen Landesbank AG» (the Future Foundation of Liechtensteinische Landesbank AG) LLB has set an example. The foundation is part of the network «Vereinigung
liechtensteinischer gemeinnütziger Stiftungen» (Union of NonProfit Foundations), which aims to promote the idea of corporate philanthropy.
The Future Foundation of LLB supports activities that
make a decisive contribution to leaving the environment as intact as possible as well as stable social conditions for future
generations. Individuals and private organisations who / which
meet these criteria with their innovative projects are eligible
for support. In addition, the foundation can award a future
prize, which by honouring past achievements is meant to act
as an incentive for recipients to continue their outstanding
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commitment. The foundation capital of CHF 30'000.– was
increased by an endowment of CHF 3 million by the shareholders at the General Meeting of Shareholders in May 2011.
Sustainable products
LLB explicitly engages with topics pertaining to the future. We
are partner of the LIFE Climate Foundation Liechtenstein, whose
objective is to give new impetus to the development and promotion of market-based instruments in the area of climate protection. Moreover, we are the custodian bank of the first Liechtenstein microfinance fund (EMF Microfinance Fund AGmvk) and
we support the Center for Social and Sustainable Products AG
in Vaduz.
As part of the complex environmental system, the energy
consumption of buildings is an important aspect. LLB provides
eco and renovation mortgage loans for the sustainable use
of resources and thus promotes investments in new buildings
designated energy-saving houses or passive housing and buildings complying with comparable alternative-energy standards.
Our responsibility towards future generations is also mirrored
in our financial and inheritance planning products.
«Green» data processing centre
The Liechtensteinische Landesbank is setting future standards for the Rhine Valley region with the construction of the
new branch office in Eschen (FL). The building complies with
«Minergie» standards, the attached Data Center demonstrates
a clear commitment to «Green IT». The energy density and, consequently, the cooling requirements of data processing centres
are constantly rising, and for that reason energy efficiency is
crucial. All building elements – from the construction, to the
insulation and the architectural design of the building – were
carefully matched to each other in order to increase energy efficiency. The construction of the new LLB data processing centre permits the specific use of only single modules. Server and
cooling elements are positioned so that only the computer
is cooled and not the entire room. The system uses the outside
temperature, which means that no additional technical cooling is necessary below a temperature of 17 degrees Celsius
(62.60 degrees Fahrenheit). The waste heat is used to heat the
branch office. IBM Schweiz AG testifies to the exemplary nature
of the new «green» data processing centre.
Mobility management
Since ecology and the economy are inseparably linked the LLB
Group is committed to reducing the carbon footprint through
the introduction of organizational measures. For example, we
motivate our employees by providing them with relevant information on how they can possibly abstain from driving to work,
form car pools or switch to more environmentally friendly as
well as cost saving alternatives. Our comprehensive mobility
management consists of various elements, such as, for example,
a graduated system of fees on parking spaces for employees.
Furthermore, LLB bears the costs of an annual travel pass with
the Liechtenstein Bus Company (LBA). Employees living outside the catchment area of the LBA receive financial contributions for using regional public transport. We encourage our
staff to take the bus or ride our company bicycles to meetings
and events in Liechtenstein.
Furthermore, we offer car-sharing possibilities that can
be used both for business and for private purposes. The fact
that our employees can have recourse to a car every now
and again increases their mobility but at the same time saves
parking spaces and helps reduce the number of car purchases
as well as CO² emissions. Since 2011 we have shared both
of our «mobility cars» with the Liechtenstein Government. The
new location in the centre of Vaduz is more attractive. Additionally, we are able to offer this service to more interested parties and are thus able to save on costs.
Since the introduction of mobility management in January
2010 we have made constant progress, although the number
of reimbursements for LBA bus passes has decreased by 10 percent. This can be explained by the fact that the number of employees commuting to Liechtenstein from eastern Switzerland
and Zurich has increased while the number of employees who
live in Liechtenstein has decreased.
In a new step, we are planning to reduce the number of
kilometres travelled on business trips by further expanding the
use of technical alternatives, such as, for example, telephone
conferencing and video-conferencing. Moreover, we encourage
our employees to use public transport as much as possible
when on business trips.
Operational ecology
Energy consumption
Savings from energy consumption hold potential for both
ecology and the economy. The new building in Eschen, which
will be opened by the end of 2012, is designed to be energy
efficient, and as such it will make a large contribution. In 2011,
the headquarters of the Liechtensteinische Landesbank consumed 816'779 kilowatt-hours of heating energy. In 2010, this
figure was 1'076'644 kilowatt-hours. And electricity consumption is tendentiously decreasing too: in 2011, LLB in Liechtenstein consumed 4'217'619 kilowatt-hours of electricity, that is,
8 percent less than in the previous year. At the headquarters,
electricity consumption has decreased slightly by 1.3 percent
to 1'609'510 kilowatt-hours since the introduction of the Avaloq
banking software, after having previously shot up during
the implementation phase. Our main buildings are responsible
for the bulk of energy consumption. Since three of our business premises (headquarters, Haus Wuhr Ost, Haus Engel) are
equipped with solar panels we generate part of our electric
power in an environmentally friendly manner. In 2011, the solar
power system produced 10'642 kilowatt-hours, an increase
of 26 percent as compared with 2010.
Power generation from solar panels
2007 – 2011, in kilowatt-hours
10'642
2011
8'478
2010
9'124
2009
2008
8'953
2007
9'176
3'000
6'000
9'000
12'000
15'000
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58
59
Energy consumption
2007 – 2011, in kilowatt-hours
4'217'619
2011
5'175'365
2010
5'365'469
2009
2008
4'847'098
2007
4'694'924
Paper consumption
2011 was the UNO Year of the Forest. The European regions
where we are based – Liechtenstein, Switzerland and Austria –
adhere to the principles socially and environmentally responsible forestry. It is not just the quantity of paper a company
uses that counts but also the quality of that paper. This is why
the LLB Group only uses paper with the globally accepted
FSC (Forest Stewardship Council) label when printing a large
amount of brochures at monthly or quarterly intervals. In
addition, we continuously take measures in order to reduce
paper consumption. For example, we inform our clients that
they can access PDF files of numerous brochures and documents on our website. An increasing number of clients – presently 26.5 percent – make their payments and execute stock
exchange orders through our LLB iBanking system. All receipts
are available online via the electronic mailbox.
Paper consumption
2007 – 2011, in tonnes
84.18
2011
88.56
2010
96.06
2009
2008
117.55
2007
97.42
20
40
60
80
100
120
Waste
Waste management within the LLB Group encompasses:
avoiding, recycling and the proper disposal of waste. There are
central collection points in all buildings for the separation of
waste and the disposal of paper, glass and PET bottles as well
as for waste requiring special disposal.
Waste disposal statistics
2007 – 2011, in tonnes
108.7
2011
102.9
2010
2009
115.9
2008
116.7
2007
119.4
20
40
60
80
100
120
140
Review of operations i Social and ecological sustainability
1'000'000 2'000'000 3'000'000 4'000'000 5'000'000 6'000'000
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Corporate governance
Through our corporate governance we ensure
responsible and transparent management and
control within the LLB Group. The fundamental basis for our corporate governance are the
SIX Swiss Exchange directives about corporate
governance, the Liechtenstein law concerning
the control and supervision of public companies
(ÖUSG) and the law concerning the Liechtensteinische Landesbank. In 2011, the Liechtenstein Government issued an investment strategy
for LLB.
Major shareholder: The Principality of Liechtenstein
The law concerning the control and supervision of public companies (ÖUSG), which came into force on 1 January 2010, requires the Liechtenstein Government to issue a decree about
an investment strategy for the Principality's investment in
Liechtensteinische Landesbank AG. On 22 November 2011,
the Liechtenstein Government as representative of the majority shareholder, the Principality of Liechtenstein, enacted this
investment strategy. The investment strategy defines how the
Principality intends to use its majority equity stake in Liechtensteinische Landesbank AG in the medium and long term, thus
also giving minority shareholders certainty in planning.
The Liechtenstein Government explicitly supports the
stock exchange listing of LLB and maintains its majority stake
of at least 51 percent. The Government represents the shareholder interests of the Principality at the General Meeting of
Shareholders pursuant to the rights afforded to it by stock corporation law. The Government observes corporate autonomy
as well as the rights and obligations resulting from the stock
exchange listing. At the same time, the Government, as a
shareholder, also respects the decision-making authority of the
Board of Directors regarding corporate strategy and corporate
policy. Drawing on Art. 15 of the Corporate Governance Law, the
investment strategy was decided upon after consultation with
the Board of Directors of LLB. As an entrepreneurial group that
is partly public but at the same time subject to market rules
and regulations as well as competition, we are continuously
developing our corporate governance further.
Basis
Our corporate management, which is responsible-minded and
focused on long-term added value, is characterized by good
shareholder relations, efficient cooperation between the Board
of Management and the Board of Directors, a success oriented
remuneration system as well as transparent accounting and
reporting.
The principles and directives defining corporate governance
are laid down in two laws: the law concerning the control and
supervision of public companies (ÖUSG) of 19 November 2009
and the law concerning the Liechtensteinische Landesbank
(LLBG) of 21 October 1992. In addition, they are laid down in
the statutes and the regulations of LLB governing the conduct
of business, which are regularly reviewed and, if necessary,
modified. These documents are based on the directives and recommendations of the «Swiss Code of Best Practice for Corporate Governance» by the Swiss Business Federation (economiesuisse).
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Since December 2010 the Board of Directors of the LLB Group
has held the «Best Board Practice» labels of the Swiss Association for Quality and Management Systems (SQS) as well as
of the Liechtenstein Association for Quality Assurance Certificates (LQS). The activity and organisation of the Board of
Directors exhibit a high level of quality.
The following corporate governance report complies with
the requirements of the «Directive Corporate Governance»
(DCG), valid since 1 July 2002, by the SIX Swiss Exchange as
well as its updated commentary of 20 September 2007. If information required by the directives is disclosed in the Notes to
the financial statement, a corresponding reference is shown.
1 Group structure and shareholders
1.1 Group structure
1.1.1 Description of the operative Group structure
The Liechtensteinische Landesbank is a public company
(«Aktiengesellschaft») according to Liechtenstein law. It is the
parent company of the LLB Group, which is based on a parent
company structure.
The Group regulations, «Management and Organisation
of the LLB Group Companies», approved by the Board of Directors, ensure the proper conduct of business, an appropriate
organizational structure as well as the uniform management
of the LLB Group. This is provided by the Group Board of Directors, the Group Internal Audit, the Group Executive Management Board, the Board of Directors' committees of the Group
companies and the Group Service Center.
The Group Board of Directors and Group Executive Management Board are composed of the same persons who comprise
the LLB parent company's Board of Directors and Board of Management. Within the scope of the powers and duties vested
in them by the Group regulations, the LLB Group functions can,
for example, also make decisions and give instructions which
are binding for both the parent company and the LLB Group
companies – but taking into consideration the provisions of local law applicable to the individual Group companies.
The members of the Board of Management of the Liechtensteinische Landesbank are represented on the Boards of Directors of the consolidated companies. Either the Chairman (CEO)
or a member of the Board of Management of LLB serves as
the Chairman of the Board of Directors of a subsidiary company.
The following companies are exceptions to this rule: Bank Linth
LLB AG, swisspartners Investment Network AG and Jura Trust
AG. At these companies – with the exception of swisspartners
Investment Network AG – a member of the Board of Management of the Liechtensteinische Landesbank serves as the Vice
Chairman.
The organizational structure of the LLB Group as at 16 January 2012 is shown on pages 16 to 17. The detailed segment
reports are shown on pages 31 to 46.
1.1.2 Listed companies included in the scope of consolidation
The Liechtensteinische Landesbank, with its headquarters
in Vaduz, is listed on the SIX Swiss Exchange. As at 31 December 2011, market capitalization stood at CHF 1.3 billion
(30'800'000 bearer shares at a nominal value of CHF 5.– at a
year-end price of CHF 41.50).
Bank Linth LLB AG, with its headquarters in Uznach,
in which the Liechtensteinische Landesbank holds a majority
equity stake of 74.2 percent, is also listed on the SIX Swiss
Exchange, Segment «Local Caps». As at 31 December 2011,
market capitalization stood at CHF 359.2 million (805'403 registered shares with a nominal value of CHF 20.– at a year-end
price of CHF 446.–).
Listed companies included in the scope of consolidation
Market
capitalization
(in CHF thousands)
Company
Reg. office
Listed on
Liechtensteinische Landesbank AG
Vaduz
SIX Swiss Exchange
1'278'200
Bank Linth LLB AG
Uznach
SIX Swiss Exchange
359'210
1.1.3 Unlisted companies included
in the scope of consolidation
Details of the unlisted companies included in the scope of
consolidation (company, activity, registered office, share capital and equity interest) can be seen in the Notes to the financial statement of the LLB Group in the table «Scope of consolidation» on pages 139 to 140.
1.2 Major shareholders
The Principality of Liechtenstein is the majority shareholder of
the Liechtensteinische Landesbank. In accordance with the Law
concerning the Liechtensteinische Landesbank, in terms of
capital and voting rights, the Principality of Liechtenstein must
hold at least 51 percent of the shares. These may not be sold.
At the end of 2011, the Principality's equity stake in
the shares of the Liechtensteinische Landesbank remained
unchanged at 57.5 percent. Detailed information about the
development of this equity stake can be found at:
www.llb.li/capital+structure.
Stake (in %)
74.2
Security
number
ISIN number
3019524
LI0030195247
130775
CH0001307757
As at 31 December 2011, Thornburg Investment Management
Inc. held a total of 1'377'064 LLB shares, which corresponded
to an equity stake of 4.5 percent. 0.1 percent of the shares
were held by members of the Board of Directors and the Board
of Management, while the LLB Group held 7.7 percent of its
own shares. This share proportion served to secure the convertible bonds of CHF 270 million that were due in April 2011. For
the time being, the shares are being held on the Bank's own
books.
The remaining bearer shares were in free float, whereby
none of the other shareholders held more than three percent of
the share capital. There are no binding shareholder agreements.
1.3 Cross participations
There are no cross participations between the Liechtensteinische Landesbank and its subsidiaries or third parties.
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2 Capital structure
and its subsidiaries are not eligible for voting. There are no
priority rights or similar entitlements. Shareholders have a subscription right with the issue of new shares, which entitles
them to subscribe to new shares in proportion to the number
of shares they already hold.
The Liechtensteinische Landesbank has not issued participation certificates.
2.1 Capital
As at 31 December 2011, the share capital of the Liechtensteinische Landesbank stood at CHF 154 million (30'800'000
fully paid up bearer shares with a nominal value of CHF 5.–).
2.2 Conditional and approved capital
On the balance sheet date, the Liechtensteinische Landesbank
had no conditional capital and no approved capital.
2.5 Profit-sharing certificates
The Liechtensteinische Landesbank has not issued profitsharing certificates.
2.3 Changes to capital
Details regarding changes to capital during the last three report years are shown in the table «Consolidated statement of
changes in equity» on page 83.
2.6 Transfer limitations and nominee registrations
The Liechtensteinische Landesbank exclusively issued bearer
shares; these are fully transferable.
2.4 Shares and participation certificates
As at 31 December 2011, the share capital amounted to
30'800'000 fully paid up shares made out to the bearer with a
par value of CHF 5.–. With the exception of the LLB shares
held by the Liechtensteinische Landesbank and its subsidiaries
(2'384'376 shares) all the shares are eligible for dividend. As at
31 December 2011, share capital eligible for dividend therefore amounted to CHF 142.1 million. In principle, all LLB shares
are eligible for voting (one share, one vote). However, on
account of the regulations concerning the purchase of own
shares (Art. 306a ff. PGR / Liechtenstein Person and Company
Law), the shares held by the Liechtensteinische Landesbank
2.7 Convertible bonds and options
On 12 April 2006, the Liechtensteinische Landesbank had
made a convertible bond issue to the value of CHF 270 million.
The coupon amounted to 1.65 percent per year, payable for
the first time on 12 April 2007; the conversion price amounted
to CHF 117.75. The bond was due in April 2011. There were
no conversions.
Further details can be found in the Notes to the consolidated financial statement of the LLB Group, in the table «Debt
issued», on page 126.
As at 31 December 2011, the Liechtensteinische Landesbank had no options on its own shares outstanding.
3 Board of Directors
3.1 Members
a) Name, nationality, education and professional career
Name
Year of birth
Profession
Nationality
Hans-Werner Gassner *
1958
Business consultant and certified public accountant
FL
Markus Foser **
1969
Business consultant
FL
Markus Büchel
1953
Human resources manager
FL
Felix R. Ehrat
1957
Attorney-at-law / Group General Counsel
CH
Ingrid Hassler-Gerner
1947
Asset manager
FL
Roland Oehri
1968
Fiduciary
FL
Konrad Schnyder
1956
Entrepreneur
CH
* Chairman
** Vice Chairman
Lic. iur. Siegbert Lampert stepped down from the Board
of Directors of the Liechtensteinische Landesbank after nine
years on account of the period of office limitation statute.
On 6 May 2011, the General Meeting of Shareholders elected
Dr. Felix R. Ehrat as a new member of the Board of Directors.
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Hans-Werner Gassner
Felix R. Ehrat
Education:
◆ Licentiate in economics at the University of St. Gallen, 1983
◆ Swiss federal diploma in accountancy, 1988
◆ Dr. oec. HSG, 1989
◆ Swiss Banking School, 1996
Education:
◆ Licentiate in law at the University of Zurich, 1982
◆ Attorney-at-law, 1985
◆ LL.M. in Business and Taxation-Transnational Practice
at the McGeorge School of Law, Sacramento, California, 1986
◆ Dr. iur., University of Zurich, 1990
Professional career:
◆ Accountant at Neutra Treuhand Group, 1984 – 1989
◆ Head Internal Audit at the Liechtensteinische Landesbank,
1990 – 1998
◆ Head Finances at the Liechtensteinische Landesbank,
1998 – 2000
◆ Partner at APG Wirtschaftsprüfung AG, Vaduz (formerly
Gassner & Partner Wirtschaftsprüfung und Beratung AG,
Balzers), since April 2000
◆ Proprietor of Adcom Treuunternehmen reg., Balzers,
since April 2000
Associate in the law firm Bär & Karrer, Zurich, 1987 – 1992
Partner at Bär & Karrer, 1992 – 2000
Managing Partner at Bär & Karrer, 2000 – 2003
Senior Partner and Chairman of the Board of Management
at Bär & Karrer, 2003 – 2011
◆ Executive President of the Board of Directors at Bär & Karrer,
2007 – 2011
◆ Group General Counsel of the Novartis Group, Basel, since
1 October 2011
◆
◆
◆
◆
Markus Foser
Education:
◆ Licentiate in economics at the University of Zurich,
major in business IT, 1996
◆ Swiss federal diploma in financial analysis and asset
management CEFA, 2000
Education:
◆ Commercial diploma, 1964
◆ Liechtenstein University of Applied Sciences, legal studies
in accordance with Art. 180a of person and company law,
2005 – 2006
◆ Equity research and fund management at the
Liechtensteinische Landesbank, 1997 – 2002
◆ Advisor to mainly institutional clients with derivatives and
structured products at Bank Vontobel (Liechtenstein) AG,
Vaduz, 2002 – 2003
◆ Head of Fund & Investment Services (Asset Management)
at swissfirst Bank (Liechtenstein) AG, Vaduz, 2004 – 2007
◆ Member of the Executive Board of Banque Pasche (Liechtenstein) SA, Vaduz, responsible for Fund & Investment Services
(Asset Management), 2008 – 2009
◆ Proprietor of MAFOS Consult Anstalt, since 2009
◆ Head Asset Management and Research, A.M.I.S., Schaan,
1976 – 1989
◆ Managing Director, Pan Portfolio AG, Schaanwald,
since 1989
◆ Managing Director, PanFinanzPartner AG, Schaanwald,
since 2005
Markus Büchel
Education:
◆ Apprenticeship as a mechanical draughtsman, 1969 – 1973
◆ Commercial college Buchs, 1973 – 1974
◆ Mechanical engineer (Dipl. Ing. FH), Vaduz, 1974 – 1978
◆ Hilti AG, Schaan, (various technical functions), 1973–1981
◆ ThyssenKrupp Presta AG, Eschen, development / engineering
(various functions), 1981 – 1991
◆ ThyssenKrupp Presta AG, Eschen, Head Technical Services,
1991 – 1995
◆ ThyssenKrupp Presta AG, Eschen, Head Human Resources
Presta Group, since 1995
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Roland Oehri
Education:
◆ Commercial apprenticeship, 1987
◆ Licentiate in economics (HWV), 1993
◆ Liechtenstein trustee and fiduciary examinations, 1998
◆ Investment advisor, Foreign Private Clients Department
of VP Bank AG, Vaduz, 1993 – 1999
◆ Head Foreign Private Clients Department of VP Bank AG,
Vaduz, 1999
◆ Client advisor, Private Trust Banking, VP Bank AG, Vaduz,
2000
◆ Client advisor and Head Intermediaries Department of
Bank Wegelin (Liechtenstein) AG, Vaduz, subsequently
swissfirst Bank (Liechtenstein) AG, Vaduz, 2000 – 2003
◆ Vice President of LOPAG Louis Oehri & Partner Trust reg.,
Ruggell, 2004–2009
◆ Partner and Managing Director of Sequoia Treuhand
Trust reg., Ruggell, since 2006
◆ Partner and Managing Director of Sequoia Capital
Management AG, Ruggell, since 2007
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Konrad Schnyder
Education:
◆ Training as mechanical engineer, 1977
◆ Technical businessman, 1979
◆ SKU Swiss Management Course, 1992
◆ Proprietor, Vice Chairman and Delegate of the Board of
Directors of the Sersa Group of companies, since 1985
◆ Member of the Board of Directors of Bank Linth LLB AG,
Uznach, 1998 – 2008
◆ Delegate of the Board of Directors of Euroswitch AG,
Pfäffikon / SZ, since 2004
◆ CEO Sersa Group Management AG, Pfäffikon / SZ, since 2001
b) Executive / non-executive members
All members of the Board of Directors of the Liechtensteinische
Landesbank are non-executive members. Pursuant to Art. 22
of the Liechtenstein banking law in connection with Art. 10 of
the law concerning the Liechtensteinische Landesbank, special
bodies must be constituted for the direction, supervision and
control of a bank on the one hand and for the management of a
bank on the other hand. No member of the Board of Directors
is allowed being a member of the Board of Management.
c) Independence
All members of the Board of Directors are independent within
the context of the SIX Swiss Exchange «Directive Corporate
Governance» (DCG) concerning corporate governance information. In 2011, as well as in the previous three business years,
no member of the Board of Directors was a member of the
Board of Management of the Liechtensteinische Landesbank
or a Group company. No member of the Board of Directors had
significant business relationships with the Liechtensteinische
Landesbank or with another Group company. In accordance
with Art. 12 of the Liechtenstein law concerning the control
and supervision of public companies, all contracts with members of the Board of Directors must be in writing and they
must be approved by the Board of Directors. The same conditions apply as to contracts concluded with third parties.
3.2 Other activities and commitments
Dr. Felix R. Ehrat has been Chairman of Globalance Bank AG,
Zurich, since the end of 2010 and Member of the Board of
Directors of the Müller-Möhl Group, Zurich, since 2003.
Since 1 January 2010, Ingrid Hassler-Gerner has been Chairwoman of the Foundation Board of the Liechtenstein Civil
Service Pension Fund.
Konrad Schnyder has been Chairman of the Board of Directors of Raility AG, Biel, since 2006, Delegate of the Board of
Directors of Euroswitch AG, Pfäffikon / SZ since 2004, Member
of the Board of Directors of Sustra Tiefbau + Strassen AG, Sursee,
since 1998, Member of the Board of Directors of Dedalus Holding AG, Sursee, since 2005, Vice Chairman of the Association of
Swiss Railway Trackwork Contractors (VSG), Zurich, since 2000,
Chairman of the Swiss Rail Engineering Companies (VSBTU),
Baden, since 2011, Delegate of the VSBTU to the European
Federation of Railway Trackwork Contractors (EFRTC), Paris,
since 2007, and Chairman of the Board of Directors of SCL
Zürich AG, Unterägeri, since July 2011.
Otherwise, the members of the Board of Directors are not
involved in the management or supervisory boards of important Liechtenstein, Swiss or foreign private or public law corporations, establishments or foundations, nor do they exercise
any permanent management or consultancy functions for important Liechtenstein, Swiss or foreign interest groups, nor do
they perform official functions or hold political office.
3.3 Election and term of office
3.3.1 Principles governing election procedure
The Board of Directors of the Liechtensteinische Landesbank
is – in accordance with the law and the company statutes –
composed of five to seven members, who are elected individually by the General Meeting for a term of office of three years.
Thereby, a year corresponds to the period from one General
Meeting to the next. Members can be re-elected for a further
two terms. After three terms of office, the Chairman of the
Board of Directors can – in justified cases – be re-elected for an
extraordinary term of office of at most two years. The Chairman of the Board of Directors is elected by the General Meeting. The Vice Chairman is elected from among the members of
the Board of Directors by its members. New members of the
Board of Directors elected as substitutes shall be elected for a
full term of office of three years. The General Meeting can dismiss members of the Board of Directors on important grounds.
The age limit is 70 years for members of the Board of Directors.
Dr. Hans-Werner Gassner has been Chairman of the Board
of Directors since 2006. Markus Foser has been Vice Chairman
since 2009. Patrick Helg (Head Group Internal Audit) has been
the Secretary (recorder of the minutes) since September 2009.
3.3.2 First-time election and remaining term of office
Name
Elected by
First-time appointment
Elected until
Hans-Werner Gassner
Landtag
2006
2012
Markus Foser
Landtag
2009
2012
Markus Büchel
Landtag
2009
2012
Felix R. Ehrat
General Meeting
2011
2014
General Meeting
2005
2014
Roland Oehri
Landtag
2009
2012
Konrad Schnyder
General Meeting
2008
2014
Since May 2010 the General Meeting has elected all members of the Board of Directors. Prior to that, four members
were appointed by the Landtag of the Principality of Liechtenstein and three members were elected by the General Meeting.
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3.4 Internal organisation
3.4.1 Separation of tasks of the Board of Directors
Name
Function
Committee memberships
Hans-Werner Gassner
Chairman
Appointments and Compensation Committee *
Markus Foser
Vice Chairman
Group Audit & Risk Committee
Strategy Committee *
Appointments and Compensation Committee
Strategy Committee
Markus Büchel
Member
Felix R. Ehrat
Member
Member
Roland Oehri
Member
Group Audit & Risk Committee *
Konrad Schnyder
Member
Strategy Committee
* Chairman
The Group Audit & Risk Committee supports the Board of
Directors in fulfilling the duties and responsibilities vested in it
by banking law with respect to the direction, supervision and
control of the company. The «Regulations concerning the Group
Audit & Risk Committee of the LLB Group» lay down the organisation and working method as well as the competencies and
duties of the Group Audit & Risk Committee, insofar as these
are not prescribed by the law, statutes or business regulations.
Roland Oehri was Chairman of the Committee; Markus Foser,
Ingrid Hassler-Gerner and, following his election, Dr. Felix R.
Ehrat were Members of the Committee.
The Group Audit & Risk Committee has the following tasks
in the Committee. In particular, it:
◆ monitors and evaluates the integrity of the financial
reporting including the structure of the accounting systems,
the financial controls and financial planning;
◆ monitors and evaluates the internal controls in relation
to financial reporting;
◆ monitors and evaluates the effectiveness of the external
auditors and their cooperation with Group Internal Audit;
◆ evaluates the internal controls extending beyond the
financial reporting system and the Group Internal Audit;
◆ monitors and evaluates the risk profile and the risk situation
of the LLB Group.
The «Regulations concerning the Appointments and Compensation Committee» of the LLB Group lay down the organisation
and working method as well as the competencies and duties
of the Appointments and Compensation Committee, insofar as
these are not prescribed by the law, statutes or business regulations. Dr. Hans-Werner Gassner was Chairman of the Committees; Markus Foser and Markus Büchel were Members of
the Committee. Markus Büchel followed Siegbert Lampert in
this function, who stepped down from the Board of Directors
in May 2011 on account of the period of office limitation statute.
The Appointments and Compensation Committee has
the following functions, in particular:
◆ development of criteria for proposals concerning the selection and assessment of the members of the Board of Directors to be elected at the General Meeting, as well as the
submission of election proposals to the Board of Directors
for the attention of the General Meeting;
◆ formulation of successor plans and their periodic review
both in the event of the age related and the ad hoc stepping
down of members of the Board of Directors;
◆ development of criteria for proposals concerning the selection and appointment of members of the Board of Management for the attention of the Board of Directors;
◆ formulation and annual review of the principles and regulations for the compensation of the members of the Board
of Directors, the members of the Board of Management and
the employees of the Liechtensteinische Landesbank for
submission to the Board of Directors;
◆ formulation of proposals for the compensation of members
of the Board of Directors, the members of the Board of
Management and the staff of the Internal Audit Department
for submission to the Board of Directors in accordance with
existing principles and regulations;
3.4.2 Composition of all Board of Directors committees,
their tasks and terms of reference
The Board of Directors may delegate a portion of its duties to
committees. To support the Board of Directors in performing
their tasks, the Board implemented two standing committees:
the Group Audit & Risk Committee as well as the Appointments
and Compensation Committee. In addition, there is a Strategy
Committee formed on an ad hoc basis. The Board of Directors
elects the committee members from among its members and
appoints the Chairmen. Each committee is composed of at
least three members. As preparatory bodies, these committees
deal in detail with the tasks assigned to them, submit the results of their work to the Board of Directors and make proposals
if decisions are required. The Board of Directors is entitled to
transfer decision-making authority to the committees. To date,
it has, however, not made use of that right. Consequently,
the committees solely act in an advisory function.
The committee members must possess the expertise for
the tasks and duties they have taken on. All committee members must be independent. The Board of Directors issued
separate regulations for the two standing committees, which
stipulate their duties and individual competencies as summarized below.
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◆ annual review of the compensation of the members of the
Board of Directors and the members of the Board of Management for submission to the Board of Directors in accordance
with existing principles and regulations.
Representation in foundations
Hans-Werner Gassner is Member of the Foundation Board of
the «Future Foundation of Liechtensteinische Landesbank AG».
In 2011, two members of the Board of Directors were represented in the staff welfare foundations of Liechtensteinische
Landesbank AG: Markus Büchel as Chairman of the Board of
the Staff Welfare Foundation as well as Member of the Board of
the Supplementary Staff Welfare Foundation and the Employer
Foundation. Ingrid Hassler-Gerner was Member of the Board
of the Staff Welfare Foundation as well as Chairwoman of the
Board of the Supplementary Staff Welfare Foundation and
the Employer Foundation.
3.4.3 Working methods of the Board of Directors
and its committees
The Board of Directors of Liechtensteinische Landesbank AG
convenes once a month (except for July) for an ordinary meeting lasting at least half a day. During the 2011 business year, the
Board held a total of 15 ordinary and extraordinary meetings,
which included nine whole-day meetings, five half-day meetings
and a two-day seminar. The seminar was organised by the
Board of Directors in cooperation with the Board of Management following the ordinary meeting in June 2011. The seminar
focused exclusively on risk topics. The extraordinary meetings
primarily dealt with strategic topics. All members of the Board
of Directors were present at all meetings with the exception
of the following: Dr. Felix R. Ehrat was not present at three and
a half meetings on account of his other professional obligations relating to his new function as Group General Counsel of
the Novartis Group; Markus Foser was not present at one
meeting due to the birth of his daughter.
The Board is convened by invitation of its Chairman and
is presided over by him, or if he is absent, by its Vice Chairman.
Together with the written invitation, the members of the Board
of Directors also receive the agenda for the meeting, the minutes of the last meeting and other important documentation
required for the meeting. If there are important grounds, two
members of the Board can demand an immediate meeting.
A quorum of the Board of Directors is constituted when
a majority of its members is present. The Board of Directors
passes its resolutions by a simple majority of the votes present.
In the event of a tie, the Chairman has the casting vote. Resolutions may be passed by circular in urgent cases. Unanimity
is required for resolutions to be dealt with by circular. Resolutions shall be passed by a simple majority of votes. In the case
of a tie, the Chairman shall have the casting vote. Members
of the Board of Directors are obliged to inform the Chairman in
cases of possible conflicts of interest. The Board of Directors
shall decide whether there are grounds for the member concerned to abstain from voting. In such a case, the member concerned may neither participate in the discussion of the matter
concerned nor vote on it. In general, the Chairman of the Board
of Management attends the meetings of the Board of Directors. The other members of the Board of Management attend
meetings of the Board of Directors when matters involving
them are dealt with.
At the beginning of 2011, the Board of Directors evaluated its
own performance as part of a self-assessment process, which
also included the work of the Group Audit & Risk Committee
and the Appointments and Compensation Committee. The
self-assessment was done using structured and anonymous
questionnaires in order to ensure the high informative value of
the results. The questionnaires were evaluated by the management consulting firm PricewaterhouseCoopers. The results
of the self-evaluation demonstrated the high quality of work
done by the Board of Directors and its committees.
The members of the Group Audit & Risk Committee meet
at least four times a year. These ordinary meetings are convened by the Chairman. An agenda is compiled prior to each
meeting, which is sent together with the necessary information to the meeting participants. The members of the Group
Audit & Risk Committee, the external auditors, the Head of
Group Internal Audit and the Chairmen of the Group Risk Committee can request the Chairman of the Group Audit & Risk
Committees to convene extraordinary meetings. During the
2011 business year, seven ordinary meetings were held that
lasted between two and a half and eight hours. At one meeting, one member was excused; however, all the other committee members were present. To deal with specific issues, the
Group Audit & Risk Committee can invite other persons such as
members of the Group Executive Management, the Chairmen
of the Group Risk Committees, other staff of the LLB Group
companies, representatives of the external auditors or external
consultants. Generally, the Chairman of the Board of Management and the Head of Internal Audit participate in the meetings in an advisory capacity. No external experts were called in
during the 2011 business year.
The Appointments and Compensation Committee meets
as often as business requires, but at least once a year. In 2011,
five meetings were held. They lasted between two and three
and a half hours. All committee members were present at all
meetings. The Chairman of the Board of Management did not
attend the meetings. No external experts were called in during
the 2011 business year.
In 2011, the Strategy Committee did not convene separately. The strategy review was conducted at an extraordinary
meeting. The Board of Directors confirmed the three-pillar strategy, which targets growth in both Liechtenstein and Switzerland as well as the opening of new markets. An external expert
was called in for the preparation and implementation.
Resolutions at the meetings are passed with an absolute
majority of the members present. Only the members of the
relevant committee are eligible to vote. In the case of a tie, the
Chairman has the casting vote. The subjects dealt with and
resolutions passed are recorded in the corresponding minutes.
The minutes are circulated to the meeting participants and
the Board of Directors. The Chairmen of the committees inform the full Board of Directors about the agenda dealt with at
the last committee meeting and submit proposals for those
points requiring decisions. Furthermore, they submit an activity report to the full Board of Directors once a year on the work
of the committees.
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3.5 Definition of areas of responsibility
The Board of Directors is responsible for the direction, supervision and control of the company. It is responsible for all duties
and is vested with all powers not reserved to other corporate
bodies by the law, statutes or other internal regulations. In addition to the duties and responsibilities specified in the statutes,
the Board of Directors has the following non-transferable duties
and responsibilities:
◆ the formulation and periodic review of medium-term and
long-term corporate strategy as well as the allocation of
resources to attain the objectives specified in the corporate
strategy;
◆ the approval of the annual budget;
◆ the definition of management policy;
◆ the appointment of
◆ the members of the committees from among its
members;
◆ the Chairman and other members of the Board of
Management;
◆ the staff of the Internal Audit Department;
◆ the discussion of the reports submitted by Internal
Audit and the external auditors as well as the approval
of measures implemented on the basis of audit reports;
◆ the duty to keep itself regularly informed about the
course of business and special occurrences, in particular by:
◆ discussing and approving the quarterly reports with comments on the development of business, earnings situation,
balance sheet development, liquidity, equity requirements
and risk situation;
◆ ensuring prompt information in the event of imminent risk
threats;
◆ the issuing of guidelines and regulations concerning the
principles of risk management as well as the accountabilities
and the processes for the approval of risk-related transactions, whereby in particular market, credit, default, process,
liquidity and reputation risks as well as operational and
legal risks are to be identified, limited and monitored;
◆ the decision regarding the acquisition or sale of participations in other companies as well as the establishment
or liquidation of subsidiaries and the appointment of board
members, who are employees of the Liechtensteinische
Landesbank;
◆ the decision regarding the setting up and closure of bank
offices, branches and representative offices;
◆ the decision regarding the initiation of legal actions as well
as judicial and extrajudicial settlements involving amounts
of over CHF 10 million;
◆ the stipulation of credit competences and decisions regarding large commitments (including cluster risks) and loans
to corporate bodies, as well as the issuing of regulations
regarding transactions for the account of corporate bodies
and employees;
◆ the stipulation of overall and individual limits at least once
a year;
◆ the approval of the annual report and decisions regarding
all other proposals to the General Meeting;
◆ the formulation of the principles governing the compensation system including stipulation of the salaries of the
members of the Board of Management and the staff of
the Internal Audit Department;
◆ the stipulation of competence to authorise expenditure
and decisions concerning business dealings that exceed
specified limits;
◆ the decision regarding the exercising of external mandates
and activities by members of the Board of Management
and the Internal Audit Department.
The Board of Management is the supreme governing body of
the company and it represents the company vis à vis external
parties, provided the Board of Directors does not appoint a
special delegation for specific cases. In addition to the duties
and responsibilities specified in the statutes, the Board of
Management is responsible, in particular, for the following:
◆ ensuring that the resolutions of the Board of Directors and
its committees are implemented;
◆ submitting suggestions concerning the organisation of business operations in general, and proposals for specific business matters, to the Board of Directors and the responsible
committees, provided these matters exceed the scope of
authority of the Board of Management, in particular with
respect to:
◆ the formulation and periodic review of medium-term
and long-term corporate strategy and the allocation of
resources to attain the corporate objectives;
◆ participations, subsidiaries, business offices, branches
and representative offices;
◆ annual income and expenditure budget;
◆ preparation of the annual report;
◆ implementing of efficient processes and procedures as
well as an effective internal control system to avoid and
limit risks of all kind;
◆ appointing persons (excluding staff of the Internal Audit
Department) to sign on behalf of the Liechtensteinische
Landesbank as authorised signatories, bank officers, assistant directors, deputy directors and directors in accordance
with legal provisions;
◆ regular reporting to the Board of Directors, the responsible
committees and, above all, to the Chairman regarding,
among other things, the development of business and
extraordinary occurrences as well as the presentation of
the draft annual report;
◆ issuing of the rulings and directives necessary for the
conduct of business by the Liechtensteinische Landesbank,
its branches and representative offices;
◆ deciding on cross-business unit transactions or business
transactions which exceed the joint authority vested in the
head of a business unit and the Chairman of the Board of
Management;
◆ coordinating the management and administration of subsidiaries and participations;
◆ stipulating take-up limits for securities and value rights
within the scope of primary market transactions;
◆ coordinating the product offer of the Liechtensteinische
Landesbank and specifying the pricing policy as well as
conditions for the offered products and services;
◆ deciding on or issuing rulings governing the exercise of
external mandates and activities by employees, where this
is not reserved to the authority of the Board of Directors;
◆ performing representation duties as a full corporate body
and / or as individual members of the Board of Management;
◆ signing of cooperation and partnership agreements as well
as membership of professional bodies and associations;
◆ deciding on the acquisition and sale of properties within the
scope of the general power to authorise expenditure.
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3.6 Information and control instruments
vis à vis the Board of Management
The Chairman of the Board of Directors participates once a
month in the meetings of the Board of Management in an advisory capacity. The purpose of this is for both parties to update
each other on important topics.
Principally, the Board of Directors is kept informed by the
Chairman of the Board of Management. He generally attends
the meetings of the Board of Directors in an advisory capacity,
informs it about the development of business as well as extraordinary occurrences and provides additional information
on request. The other members of the Board of Management
attend meetings of the Board of Directors when matters
involving them are dealt with. The Chairman of the Board of
Management usually also participates in the meetings of
the Group Audit & Risk Committee.
Every member of the Board of Directors can request information about all matters relating to the Liechtensteinische
Landesbank at the meetings. Outside board meetings, every
member of the Board of Directors can also request to see the
minutes of the Board of Management meetings, information
about the development of business from members of the Board
of Management and, with the approval of the Chairman of the
Board of Directors, also about individual business transactions.
The Chairman of the Board of Management informs the
Chairman of the Board of Directors – if necessary, outside board
meetings – about the development of business and extraordinary occurrences. The Chairman of the Board of Directors is responsible for informing the full Board of Directors about extraordinary occurrences.
Internal supervision and control
The LLB Group has a comprehensive and standardized management information system (MIS) for monthly reporting that
comprises both quantitative and qualitative past and futurerelated data. It enables the Board of Directors to inform itself
in a focused manner about the most important business developments, such as the business performance, earnings situation, balance sheet structure, liquidity and the risk situation.
In exercising its supervision and control functions, the
Board of Directors is also assisted by the Group Internal Audit
Department, which is subordinate directly to the Board. As an
independent body, it examines in particular the risk management, as well as the effectiveness of internal controls and
management and supervisory processes. The powers and duties
of the Internal Audit are stipulated in a special set of regulations (terms of reference). The annual auditing activity is defined
in accordance with the risk and controlling criteria and is guided
by a long-term auditing plan. To avoid duplication of work and
to optimise controls, the auditing plans are coordinated with
the statutory auditors. The short-term auditing plan and the
personnel requirement plan are reviewed by the Group Audit &
Risk Committee and submitted to the Board of Directors for
approval. In addition, Group Internal Audit regularly monitors
whether the deficiencies found have been rectified and whether
its recommendations have been implemented, and submits
reports about this to the Group Audit & Risk Committee.
Risk management
The LLB Group attaches great importance to proactive and
comprehensive opportunity / risk management. The Board of
Directors has issued guidelines and regulations concerning
the principles of risk management, as well as the responsibilities and procedure for approval of business transactions involving various levels of risk.
In 2011, we revised our risk policy guidelines and adapted
them to the changed market conditions, the new regulatory
requirements (Basel III) as well as growth in our corporate
structure. We updated and established detailed qualitative and
quantitative standards for risk responsibility, risk management
and risk control. Furthermore, we highlighted the importance
of finance and risk management by creating the position of a
chief financial officer (CFO) as of the beginning of 2012 at the
level of the Group Executive Board and the Board of Management. At the same time, we defined adequate organizational
and methodical parameters for specifying and managing risks.
With the introduction of the «Internal Capital Adequacy Assessment Process» (ICAAP) we ensure that there is always adequate capital to cover all essential risks.
The risk management specialists strive to create and maintain a uniform risk culture and risk approach. This establishes
the fundamentals for an appropriate risk / return profile and
an optimum allocation of capital. The Group Audit & Risk Committee invites the Chairmen of the following Group Risk Committees to a quarterly discussion of the status reports: the
Group Risk Management Committee, the Group Asset & Liability Committee, the Group Credit Risk Committee and the Group
Operational Risk Committee. Their reports are summarized
every six months in an overall risk report of the LLB Group,
which is dealt with by the Board of Directors. Further details
concerning risk management can be seen in the Notes to the
consolidated financial statement of the LLB Group on pages
92 to 110.
Information security
All employees of the LLB Group are obliged to comply with all
legal, regulatory and internal regulations. In doing so, they are
supported by the Group Compliance Staff Department, whose
tasks and principles are specified in a set of internal regulations.
This also comprises a strict compliance management, which
guarantees that all employees unreservedly comply with the
laws of those countries in which the LLB Group is active. Its responsibilities include the systematic training of LLB staff and
the issuing of detailed compliance directives, as well as the
management of effective control and monitoring instruments.
The Board of Directors, with the assistance of the Group Audit &
Risk Committee, is responsible for the supervision and control
of the compliance function. At least once a year, the Board of
Directors reviews whether the compliance standards applicable
to it and the company are sufficiently well known and whether
they are permanently observed.
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4 Board of Management
4.1 Members
The Board of Management of the parent bank also formed the
Group Executive Board. In 2011, it was comprised of four members. Elfried Hasler stepped down from the Group Executive
Board and the Board of Management of the Liechtensteinische
Landesbank for personal reasons and at his own request as of
30 June 2011. Lic. iur. Urs Müller, until then responsible for the
Institutional Clients Business Division of LLB, was appointed
by the Board of Directors as a member of the Group Executive
Board and the Board of Management. He took over Roland
Matt's function on 1 April 2011 and is responsible for the Domestic Market Business Division and the Institutional Market
Business Division. In April 2011, Roland Matt was appointed
Vice Chairman of the Group Executive Board and the Board
of Management, and he took over Elfried Hasler's responsibility
for the International Market Business Division. Dr. Kurt Mäder
remained in his function as Head of the Corporate Service Center.
Dr. Josef Fehr continued as Chairman of the Group Executive
Board and the Board of Management in 2011.
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69
Members of the Board of Management *
Name
Year of birth
Nationality
Function / Area of responsibility
Member of Board since
Josef Fehr
1957
FL
Chairman since 2000
1992
Roland Matt
1970
FL
Vice Chairman
2009
Kurt Mäder
1962
CH
Member Board of Management
2009
Corporate Service Center
Urs Müller
1962
FL / CH
Member Board of Management
2011
Domestic and Institutional Markets
Josef Fehr
Education:
◆ Licentiate in law at the University of Fribourg, 1981
◆ Dr. iur., University of Fribourg, 1984
◆ Swiss Banking School, 1995
◆ Legal counsel at the Liechtensteinische Landesbank,
1986 – 1992
◆ Head of Trading Division, Liechtensteinische Landesbank,
1992 – 1998
◆ Head of Private Clients Division, Liechtensteinische
Landesbank, 1998 – 2000
◆ Member of the Board of Management, Liechtensteinische
◆ Chairman of the Board of Management, Liechtensteinische
Landesbank, 2000 – 15 January 2012
◆ Chairman of the Group Executive Board, Liechtensteinische
Landesbank, 2007 – 15 January 2012
◆
◆
◆
◆
◆
◆
◆
Board of Directors mandates in the Liechtensteinische
Landesbank Group companies:
Liechtensteinische Landesbank (Switzerland) Ltd. (Member)
Liechtensteinische Landesbank (Österreich) AG (Vice
Chairman of the Supervisory Board)
Bank Linth LLB AG (Member)
LLB Asset Management AG (Member)
LLB Treuhand AG (Member)
Jura Trust AG (Member)
swisspartners Investment Network AG (Member)
Other functions:
◆ Member of the Executive Board of the Liechtenstein
Chamber of Commerce and Industry
◆ Member of the Executive Board of the Liechtenstein
Bankers Association
◆ Member of the Board of the Staff Welfare Foundation
of Liechtensteinische Landesbank AG
◆ Member of the Board of the Supplementary Welfare
Foundation of Liechtensteinische Landesbank AG
◆ Member of the Board of the Employer Foundation of
◆ Chairman of the Foundation Board of the «Future Foundation
of Liechtensteinische Landesbank AG»
Roland Matt
Education:
◆ Federally qualified business economist FH, 1995
◆ Federally qualified financial analyst and asset manager, 1999
◆ Federally qualified finance and investment expert, 2002
◆ Head of Research at VP Bank AG, Vaduz, 1999
◆ Head of Asset Management Division at VP Bank AG, Vaduz,
2000 – 2001
◆ Family Office Project Head at VP Bank AG, Vaduz, 2002
◆ Head of Investment Services, Liechtensteinische Landesbank, 2002 – 2006
◆ Head of the Domestic Clients Business Division, Liechtensteinische Landesbank, 2007 – 2008
◆ Member of the Group Executive Board and the Board of
Management, Liechtensteinische Landesbank, since 2009
◆ Head of the Domestic Market and Institutional Market
Business Divisions, Liechtensteinische Landesbank,
2009 – March 2011
* Information about changes to the Group Executive Board and the Board of Management as at the beginning
of 2012 can be found in Point 10 «Important changes since the balance sheet date», page 74.
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◆ Vice Chairman of the Group Executive Board and the
Board of Management, Liechtensteinische Landesbank,
April 2011 – 15 January 2012
◆ Head of the International Market Business Division,
Liechtensteinische Landesbank, April 2011 – 15 January 2012
◆ Chairman of the Group Executive Board and the Board
of Management, Liechtensteinische Landesbank, since
16 January 2012
◆
◆
◆
◆
◆
◆
◆
◆
Liechtensteinische Landesbank (Switzerland) Ltd. (Chairman)
Liechtensteinische Landesbank (Österreich) AG (Chairman
of the Supervisory Board)
LLB Asset Management AG (Vice Chairman)
LLB Fund Services AG (Vice Chairman)
LLB Fondsleitung AG (Vice Chairman)
Jura Trust AG (Vice Chairman)
Other functions:
◆ Member of the Board of the LLB Liechtenstein Pension
Fund Foundation
◆ Member of the Foundation Board of the «Future Foundation
Kurt Mäder
Education:
◆ Federally qualified physicist, ETH Zurich, 1987
◆ Dr. sc. nat., ETH Zurich, 1992
◆ Scientist, National Renewable Energy Laboratory,
Golden, Colorado, 1992 – 1994
◆ Senior Scientist, Centre Européen de Calcul Atomique
et Moléculaire, Lyon, 1994 – 1996
◆ Head of Operations, ELCA Informatik AG, Zurich,
1996 – 2004
◆ Member of the Board of Management, Bank Linth LLB AG,
Uznach, 2005 – 2008
◆ Member of the Group Executive Board and the Board of
Management, Liechtensteinische Landesbank, since 2009
◆ Head of the Corporate Service Center, since 2009
Urs Müller
Education:
◆ Licentiate in law at the University of St. Gallen, 1993
◆ Auditor at Unterrheintal District Court and Associate
Court Clerk at Oberrheintal District Court, 1993 – 1995
◆ Legal counsel of the Liechtensteinische Landesbank,
1995 – 1998
◆ Head of the Group Legal & Compliance, Liechtensteinische
◆ Head of the Institutional Clients Business Division,
Liechtensteinische Landesbank, 2007 – April 2011
◆ Member of the Group Executive Board and the Board
of Management, Liechtensteinische Landesbank,
since April 2011
◆ Head of the Domestic Market and Institutional Market
Business Divisions, since April 2011
◆
◆
◆
◆
◆
◆
Liechtensteinische Landesbank (Switzerland) Ltd. (Member)
Bank Linth LLB AG (Vice Chairman)
LLB Asset Management AG (Chairman)
LLB Fund Services AG (Chairman)
LLB Fondsleitung AG (Chairman)
Other functions:
◆ Member of the Board of the Liechtenstein Investment Fund
Association
4.2 Other activities and commitments
Apart from the mandates specified in Point 4.1, no other important commitments exist.
4.3 Management contracts
The Liechtensteinische Landesbank has not concluded any
management contracts.
5 Compensation, participations and loans
5.1 Contents and stipulation procedure
◆
◆
◆
◆
◆
Liechtensteinische Landesbank (Switzerland) Ltd.
(Vice Chairman)
LLB Services (Schweiz) AG (Chairman)
LLB Beteiligungen AG (Vice Chairman)
Data Info Services AG (Chairman)
Other Board of Directors mandate:
◆ Chairman of the Board of Directors of Scout & Sport AG, Bern
Other functions:
5.1.1 Responsibility and stipulation procedure
The Appointments and Compensation Committee (see Point
3.4.2 «Composition of all Board of Directors committees, their
tasks and terms of reference» on page 65), which is composed
solely of independent members of the Board of Directors, prepares the principles and regulations governing the compensation for the members of the Board of Directors and the Board
of Management, as well as the proposed amount of the compensation for the members of the Board of Directors and the
Board of Management. The Board of Directors in corpore approves the principles and regulations governing the compensation of the members of the Board of Directors and specifies
the amount of the compensation for the members of the
Board of Management.
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No advisor is called in for the formulation of the compensation
structure. Once a year, the Board of Directors prepares a summary of the compensation of board members, board chairman
and management executives derived from publicly available
sources and taking into consideration comparable banks (exchange-listed private banks and cantonal banks with significant private banking business) in Liechtenstein and Switzerland. This summary serves as a guide to the market situation
for the Board of Directors. The decision regarding the amount
of the compensation of the members of the Board of Directors
and the Board of Management is made at the discretion of
the Board of Directors. The members of the Board of Management are not present at the discussion and the decision concerning the amount of their compensation. In accordance with
Art. 12, Para 2 of the law concerning the Liechtensteinische
Landesbank, the Board of Directors must inform the government about the compensation ruling specified for the Board.
In line with the Swiss Code of Best Practice for Corporate
Governance, the Board of Directors specifically addressed the
topic of compensation and remuneration at the General Meeting of 6 May 2011. As the Board of Directors wanted to base
future actions on a definitive legal framework, it waived conducting an advisory vote. Various legal points, which are currently still open, led the Board to this decision. At the beginning
of 2011, the new EU compensation regulation became law. As
a member of the EEA, Liechtenstein incorporated this directive
into national law through the passage of Appendix 4.4 to the
ordinance on banks and securities firms (Banking Ordinance)
into law on 1 January 2012. The Board's decision was also influenced by the legal situation in Switzerland, which still remains
unclear; the future legal provision will also be binding for the
LLB Group.
5.1.2 Fundamentals
The principles and regulations governing the compensation of
the members of the Board of Directors and the Board of Management are reviewed periodically. The amount of the compensation for the members of the Board of Directors and the Board
of Management is stipulated each year.
The compensation for members of the Board of Directors
comprises a fixed compensation fee, meeting allowance (for
meetings of committees and foundation boards) and a variable
compensation component. The latter amounts (not including
employer contributions) to 0.175 percent of the Group net
profit for the respective year and may not exceed the amount
of the fixed compensation component. Both the fixed and
the variable compensation components are paid in cash. On
account of legal provisions, no severance payment may be
made in the event of the ending of a mandate (Art. 21, para.2
of the law concerning the control and supervision of public
companies).
The compensation for members of the Board of Management is composed of a fixed compensation and a variable compensation component. The fixed compensation is paid in cash.
The variable component of compensation is contingent upon
the attainment of quantitative targets. The variable component (not including employer contributions) amounts to a maximum of 0.8 percent of the Group net profit for the respective
calendar year. Individual performance is taken into consideration in allocating the variable component to the members of
the Board of Management. The variable component is limited to
the amount of the fixed component. Payment is made in cash
and through the allocation of LLB shares. The cash / shares
allocation is defined in internal regulations as follows: three
quarters LLB shares and one quarter cash payment. The members of the Board of Management do not have the right to
specify the cash / share ratio. The price per share for the sharebased remuneration component is calculated on the basis
of the average share price in the last quarter of the financial
year. The issued shares are subject to a blocked period of three
years. If the shareholder leaves the Bank's employ, the blocked
period is removed. Apart from the allocation of shares as a
profit-related component of compensation, there are no other
share plans.
The employment relationship of members of the Board of
Management is stipulated in individual employment contracts.
The period of notice is either three or four months. The contracts
of employment do not contain any special clauses in relation
to a termination of employment in the event of a change in
control of the company.
The Liechtensteinische Landesbank extends the preferential conditions customary in the banking industry to all its staff
(including management) on bank products. This generally takes
the form of limited preferential interest rates on mortgage
loans and credit balances. Standard market conditions apply to
all transactions made by the Board of Directors with the Bank.
5.1.3 Elements
For the 2011 business year, the members of the Board of Directors received a fixed compensation of CHF thousands 826. Payment of a variable remuneration was waived. Contributions
to welfare and pension schemes amounted to CHF thousands
45. The fixed compensation was paid in cash.
For the 2011 business year, the members of the Board of
Managers received a fixed compensation of CHF thousands
2'491. Payment of a variable compensation was waived. Contributions to welfare and pension schemes amounted to
CHF thousands 377. The fixed compensation was paid in cash.
In comparison with the previous year, the total compensation of the members of the Board of Directors and the members of the Board of Management decreased by 14.1 percent
and 13.3 percent, respectively, in 2011. This is due, in particular, to payment of a variable remuneration being waived.
The entire remuneration of the members of the Board of
Directors and the members of the Board of Management in the
2011 business year is reported on an accrual basis.
5.2 Transparency of compensation, participation
and loans of issuers domiciled abroad
The Liechtensteinische Landesbank has its registered office in
Vaduz, Liechtenstein. In principle, therefore, it is not subject
to Art. 663bbis of the Swiss Code of Obligations (OR). However,
to enable investors nevertheless to obtain the corresponding
information, the SIX Swiss Exchange obliges issuers whose
registered office is not in Switzerland to apply the provisions
of Art. 663bbis of the Swiss Code of Obligations in the same
manner within the scope of corporate governance reporting.
Details of the compensation and participations of members of the Board of Directors and the Board of Management,
as well as loans to them can be found in the Notes to the
financial statement of the LLB Group in «Related party transactions » on pages 135 to 137.
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6 Shareholders' participation rights
6.1 Voting right limitation and representation
The Liechtensteinische Landesbank has issued bearer shares. At
the Landesbank's General Meeting of Shareholders, each share
carries one vote. In accordance with Art. 306a ff. of person and
company law, the LLB shares held by the Liechtensteinische
Landesbank itself and its subsidiaries (2'384'376 shares as at
31 December 2011) are not eligible to vote.
At the General Meeting, each shareholder can vote their
own shares or authorise a third party to vote them by proxy.
6.2 Statutory quorum
At the General Meeting, a quorum is present if half of the share
capital is represented. Provided that legal provisions do not
stipulate to the contrary, the General Meeting passes its resolutions and decides its elections by an absolute majority of
the votes cast.
6.3 Convening of the General Meeting
The Board of Directors convenes an ordinary General Meeting
by invitation with a period of notice of three weeks. The meeting must be held within six months following the end of a business year. The invitation to the General Meeting is to be publicised in the official gazettes. The invitation must list the agenda to be dealt with at the meeting, the proposals of the Board
of Directors and, in the event of elections, the names of the
proposed candidates.
An extraordinary General Meeting may be convened by the
Board of Directors if this is in the urgent interest of the Liechtensteinische Landesbank, or at the request of one or more shareholders representing ten percent of the share capital.
6.4 Agenda
The Board of Directors specifies the agenda for the General
Meeting in accordance with the Liechtensteinische Landesbank's statutes. The statutes can be read at www.llb.li/statutes.
Liechtenstein equities law contains no regulations comparable
in nature to the Swiss legal provisions (Art. 699, para. 3, Code
of Obligations), which stipulate the rights of shareholders in
setting the agenda for General Meetings. However, legally stipulated minority rights do exist which ensure that signed and
detailed items that are submitted to the Board of Directors may
be placed on the agenda for discussion and resolution. At the
present time, it is not possible to amend the statutes in favour
of improving shareholders' rights in setting the agenda on
account of the applicable regulations of Liechtenstein company law.
6.5 Registration in the company's share register
The Liechtensteinische Landesbank exclusively issued bearer
shares.
7 Change of control and defensive measures
The Liechtensteinische Landesbank is a banking institute licensed under Liechtenstein law with its registered office in
the Principality of Liechtenstein. The regulations of the Swiss
stock exchange law concerning public purchase offers are
therefore not applicable to the Liechtensteinische Landesbank
as a possible target company. The Landesbank's statutes contain no regulations comparable with the Swiss provisions regarding opting out or opting up. Likewise, there are no change
of control clauses in favour of the Board of Management, the
Board of Directors or other senior executives.
Pursuant to the law on the Liechtensteinische Landesbank, the
Principality of Liechtenstein must hold at least 51 percent of
the capital and votes.
8 Independent auditors
8.1 Duration of mandate and term of office
of the auditor in charge
8.1.1 Date of acceptance of existing auditing mandate
PricewaterhouseCoopers AG, St. Gallen has served as the independent auditors of the Liechtensteinische Landesbank
according to company and banking law since 1998. The auditing mandate was taken over in 1998 from Revisuisse Price
Waterhouse AG, St. Gallen and its predecessor Revisa Treuhand
AG, St. Gallen. Pursuant to person and company law and banking law, the independent auditors are appointed by the General
Meeting at the proposal of the Board of Directors for the
period of one year.
8.1.2 Term of office of the auditor in charge
of the current auditing mandate
Roman Berlinger has been the responsible auditor in charge
since 2011. The auditor in charge changes every seven years.
8.2 Audit fees
In the 2011 business year, PricewaterhouseCoopers AG
invoiced the companies of the LLB Group for CHF 2.7 million
(2010: CHF 2.4 million) in respect of audit fees. These fees
include the work carried out by the auditors as required by the
regulatory authorities. The Group Audit & Risk Committee
oversees the fees paid to PricewaterhouseCoopers AG for their
services.
8.3 Additional fees
For other services, PricewaterhouseCoopers AG invoiced the
companies of the LLB Group for CHF 0.5 million in 2011 (2010:
CHF 0.6 million).
Audit fees and additional fees
in CHF thousands
2011
2010
2'743
2'381
525
615
55
59
110
95
Regulatory issues and questions
67
129
Project consulting IT platform
62
273
231
59
Audit fees
Additional fees
International accounting
Taxation advice
Legal and other advice
8.4 Information instruments of the external auditors
The Group Audit & Risk Committee fulfils a supervisory, control
and monitoring function, which extends to the external auditors. It is responsible, among other tasks, for:
◆ taking note and discussing the risk analysis made by the
external auditors, the auditing strategy derived from it
and the respective risk-oriented auditing plan;
◆ the critical analysis of the audit reports submitted by the
external audit and the Group Internal Audit functions to
the Group Board of Directors;
16:31 Uhr
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◆ discussing serious problems identified during the auditing
process with the external auditors;
◆ the monitoring and implementation of recommendations
put forward by the external auditors and Group Internal
Audit to eliminate weak points and deficiencies;
◆ assessing the quality of the external and internal audit
functions (external and internal auditors according to banking law and person and company law), as well as their
cooperation;
◆ discussing the annual activity report and the annual audit
plan of Group Internal Audit including the evaluation of
whether this function has sufficient resources and competences, as well as approving proposals to the Group Board
of Directors;
◆ assessing the qualification, independence, objectivity and
performance of the external auditors and Group Internal
Audit;
◆ checking the reconcilability of external auditors' auditing
activities with possible consulting mandates, as well as
evaluating and discussing their professional fees;
◆ submitting a proposal to the Group Board of Directors for
the attention of the General Meeting regarding the appointment or dismissal of the external auditors (appointed according to banking law and person and company law). The Group
Audit & Risk Committee is responsible for defining the procedure to appoint new external auditors.
The external auditors perform their work in accordance with
the legal provisions, and according to the principles of the
profession in the respective country of domicile of the Group
company, as well as according to the «International Standards
on Auditing». The independent auditors regularly report to
the Board of Directors, the Group Audit & Risk Committee and
the Board of Management about their findings and submit
suggestions for improvements to them. The most important
report is the audit report on the LLB Group required by banking law. This summarized report is submitted in writing once a
year to the Board of Directors. In addition, the responsible auditor in charge of the external auditors presents a report at one
meeting of the Group Audit & Risk Committee. All reports from
the internal and external auditors concerning all Group companies are submitted to the Group Audit & Risk Committee.
Important findings in the reports of the internal and external auditors since the last meeting and all reports concerning
the Group companies are addressed at the next meeting of
the Group Audit & Risk Committee. The head of Group Internal
Audit is responsible for providing the relevant information
and reports directly to the Group Audit & Risk Committee. He
is appointed by the Board of Directors and is subordinate to
the Board's Chairman.
Representatives of the external auditors participated in
two meetings of the Group Audit & Risk Committee but did not
attend any meetings of the full Board of Directors during the
report period. The head of Group Internal Audit attended all
but one of the meetings of the Group Audit & Risk Committee
and all but one of the meetings of the full Board of Directors.
The external auditors submit periodic reports dealing with the
audit planning based on risk analysis, the current audit reporting, the annual activity report as well as a comparison of actual
to budgeted fees.
The Group Audit & Risk Committee evaluates the performance
of the external and internal auditors in their absence annually.
The following criteria are applied in assessing the performance
of the external auditors and their professional fees (auditing
and additional fees): comparison of fees and budgeted fees
as well as the previous year's fees, feedback from the departments audited, quality of the auditors' findings, structured assessment of the auditors' expertise. The independence of the
external auditors is evaluated on the basis of the information
concerning independence provided in the annual report of
PricewaterhouseCoopers AG, and an assessment of their conduct. The cost planning and its observance are also reviewed
and discussed annually. Moreover, the Group Audit & Risk
Committee annually reviews alternatives and submits a proposal to the full Board of Directors for the attention of the
General Meeting regarding the appointment of the external
Group auditors.
Additional orders are placed on the basis of offers from
competitors taking into consideration the level of expertise.
The Group Audit & Risk Committee bases its assessment regarding the placing of orders for additional services on the periodic
reports it receives from Group Internal Audit regarding the
reliability, scope and relationship to audit fees.
The Group Audit & Risk Committee reports to the full
Board of Directors once a year concerning the activities of the
external auditors and the assessment of their performance.
The external auditors have direct access to the Board of
Directors at all times. They hold regular discussions with the
Chairman of the Board of Directors and the Chairman of the
Group Audit & Risk Committee. Topics in 2011 included:
◆ analysis and evaluation of risks;
◆ auditing strategy and auditing plan;
◆ implementation level of auditing recommendations;
◆ discussion of important audit findings;
◆ areas of judgement in the annual financial statement;
◆ developments in accounting;
◆ determination of auditing fee;
◆ evaluation of work of independent auditors;
◆ cooperation between internal and external audit.
9 Information policy
The Liechtensteinische Landesbank is committed to providing
its shareholders, clients, staff and the general public with comprehensive and regular information. This ensures that all stakeholders are treated equally and fairly. By institutionalizing and
nurturing these ties, by building up and preserving relationships based on trust with the financial community on the one
hand, and with the media and all other interested parties on
the other, equality of opportunity and transparency are consistently ensured.
The most important information media of the Liechtensteinische Landesbank are its Internet website www.llb.li, as
well as its annual and interim reports, media communiqués,
its financial result presentation and the conference call for
media and analysts, and its General Meeting of Shareholders.
The Liechtensteinische Landesbank has not compiled a compensation report for the 2011 business year in line with Point 8
of Appendix 1 (Recommendations concerning the compensation of the board of directors and management board) of
the «Swiss Code of Best Practice for Corporate Governance» of
economiesuisse. Details of the compensation and participations of members of the Board of Directors and the Board
of Management, as well as loans to them can be found in
72
73
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Seite 74
the Notes to the financial statement of the LLB Group in
«Related party transactions» on pages 135 to 137. In line with
the «Swiss Code of Best Practice for Corporate Governance»,
special attention was paid to the subject of compensation
at the General Meeting on 6 May 2011 during the discussion of
the agenda point «Approval of the annual report and the consolidated annual report».
As a listed company, the Liechtensteinische Landesbank
is obliged to publish price-relevant information (ad hoc publicity, Art. 72 of the exchange listing regulations). To receive ad
hoc announcements in accordance with the directives for ad
hoc publicity automatically, an interested party can register at
www.llb.li/registration. Ad hoc announcements are published
under the link www.llb.li/mediacommuniques.
Agenda 2012
Date
Time
Event
27 March 2012
7.00 a. m.
Publishing of 2011 business result, release of online
annual report 2011 at www.llb.li
10.30 a. m.
28 March 2012
Financial reporting and analyst media conference
2011 business result advertisement in the «Liechtensteiner
Vaterland» and the «Liechtensteiner Volksblatt»
13 April 2012
4 May 2012
Publishing of printed annual report 2011
6.00 p. m.
8 May 2012
Ex dividend
11 May 2012
30 August 2012
General Meeting of Shareholders
Payment of dividend
7.00 a. m.
Publication of interim financial statement 2012,
publishing of printed interim financial statement 2012 and
release of online interim financial statement 2012 at www.llb.li
10.30 a. m.
31 August 2012
Conference call
2012 interim financial result advertisement in the «Liechtensteiner
Vaterland» and the «Liechtensteiner Volksblatt»
If you have any questions, please contact the following
person who is responsible for investor relations:
Dr. Cyrill Sele
Head Group Corporate Communications
Telephone +423 236 82 09
Fax +423 236 87 71
E-mail [email protected]
10 Important changes since the balance sheet date
Dr. Josef Fehr stepped down as Chairman of the Group Executive Board and the Board of Management of the Liechtensteinische Landesbank, for personal reasons and at his own
request, as of 16 January 2012. The Board of Management
appointed his former deputy Roland Matt as Chief Executive
Officer and Christoph M. Reich as Chief Financial Officer;
the latter was also elected a new member of the Group Executive Board and the Board of Management. The new Group
Executive Board and the Board of Management now consists
of five members. The recruitment process for the vacant position of the Head of the International Market Business Division
has commenced.
The Board of Directors, the Group Executive Board and the
Board of Management want to align the organizational structure of the LLB Group more strongly with clients and markets
and have initiated a corresponding project. The implementation
of the new organizational structure is planned for 1 July 2012.
How Switzerland deals with the issue of compensation
is of decisive importance for the LLB Group as a SIX Swiss Exchange listed company. The Swiss Parliament intends to have
drafted a counter-proposal to the so-called «initiative against
rip-off salaries» («Abzocker-Initiative») by summer 2012. At
the same time, developments in the European Union are relevant for Liechtenstein as an EEA member state. On 1 January
2012, the new EU compensation regulations came into force
in Liechtenstein.
On 18 August 2011, the Board of Directors approved Group
«Compensation and Remuneration Standards» for Liechtensteinische Landesbank AG and its Group companies on the basis
of Appendix 4.4 to the ordinance on banks and securities firms
(Banking Ordinance) and the new EU directive 2010/76/EU.
As stated in the transitional provisions of the Banking Ordinance, the regulation of compensation and remuneration applies to work performance in 2012. The adoption of compensation and remuneration standards for Liechtensteinische
Landesbank AG and its Group companies that are based on
this is planned for 2012.
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Locations and addresses
Headquarters
Group companies
Städtle 44 · P. O. Box 384 · 9490 Vaduz · Liechtenstein
Telephone +423 236 88 11 · Fax +423 236 88 22
Internet www.llb.li · E-mail [email protected]
Liechtensteinische Landesbank (Switzerland) Ltd.
Stampfenbachstrasse 114 · 8006 Zurich · Switzerland
Telephone +41 44 421 46 11 · Fax +41 44 421 46 22
Internet www.llb.ch · E-mail [email protected]
Branches
Liechtensteinische Landesbank (Österreich) AG
Wipplingerstrasse 35 · 1010 Vienna · Austria
Telephone +43 1 533 73 83-0 · Fax +43 1 533 73 83-22
Internet www.llb.at · E-mail [email protected]
Balzers
Höfle 5 · 9496 Balzers · Liechtenstein
Telephone +423 388 22 11 · Fax +423 388 22 22
Eschen
St. Martins-Ring 6 · 9492 Eschen · Liechtenstein
Telephone +423 377 55 11 · Fax +423 377 55 22
Schaan
Landstrasse 36/38 · 9494 Schaan · Liechtenstein
Telephone +423 236 99 11 · Fax +423 236 99 24
Triesenberg
Schlossstrasse 1 · 9497 Triesenberg · Liechtenstein
Telephone +423 262 89 22 · Fax +423 268 23 43
Bank Linth LLB AG
Zürcherstrasse 3 · P. O. Box 168 · 8730 Uznach · Switzerland
Telephone +41 844 11 44 11 · Fax +41 844 11 44 12
Internet www.banklinth.ch · E-mail [email protected]
LLB Asset Management AG
Städtle 7 · P. O. Box 201 · 9490 Vaduz · Liechtenstein
Telephone +423 236 95 00 · Fax +423 236 95 06
Internet www.llb.li/assetmanagement
E-mail [email protected]
LLB Fund Services AG
Äulestrasse 80 · P. O. Box 1238 · 9490 Vaduz · Liechtenstein
Telephone +423 236 94 00 · Fax +423 236 94 06
Internet www.llb.li/fundservices · E-mail [email protected]
LLB Fondsleitung AG
Äulestrasse 80 · P. O. Box 1256 · 9490 Vaduz · Liechtenstein
Telephone +423 236 81 40 · Fax +423 236 81 46
Internet www.llb.li/fondsleitung · E-mail [email protected]
Jura Trust AG
Mitteldorf 1 · 9490 Vaduz · Liechtenstein
Telephone +423 237 75 75 · Fax +423 237 75 76
Internet www.juratrust.li · E-mail [email protected]
Publishing information
Published by: Liechtensteinische Landesbank AG, 9490 Vaduz, Liechtenstein · Design and layout: Montfort Werbung, 9491 Ruggell, Liechtenstein
Printed by: BVD Druck + Verlag AG, 9494 Schaan, Liechtenstein · Photos: Christian Kaufmann, 80803 Munich, Germany · Paper: Printed on Munken Polar
20.03.2012
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1925E 04.12

Annual Report 2011 - Liechtensteinische Landesbank

Transcription

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