Annual Report 2011 LGT Bank in Liechtenstein Ltd., Vaduz

Annual Report 2011
LGT Bank in Liechtenstein Ltd., Vaduz

Contents
Organizational structure 4
The business year in comparison 5
Annual report 6
Balance sheet 7
Off-balance sheet transactions 8
Profit and loss account 9
Appropriation of net profit 10
Flow of funds statement 11
Appendix 12
Notes on the balance sheet 18
Notes on off-balance sheet transactions 34
Notes to the profit and loss account 36
Additional information 38
Report of the statutory auditor 41
International presence and imprint 42
Contents
3

4
Organizational structure as of April 2012
Board of Directors Thomas Piske, Chairman
H.S.H. Prince Max von und zu Liechtenstein
Olivier de Perregaux
Jacques Engeli**
Internal Audit Daniel Hauser
Executive Management Board Norbert Biedermann, Chairman
Dr. Florian Dürselen
Ivo Klein*
Markus Werner*
Statutory Auditor PricewaterhouseCoopers AG, Zürich
Organizational structure as of April 2012
* since 1 June 2011
** since 30 November 2011

The business year in comparison
Balance sheet 2011 2010 Change
absolute %
Balance sheet total CHF m 23 495.9 21 656.8 1 839.1 8.5
Shareholders’ funds (after profit distribution) CHF m 1 836.0 1 792.2 43.8 2.4
Client deposit CHF m 12 404.5 10 752.7 1 651.8 15.4
Due from clients CHF m 8 265.4 7 715.7 549.8 7.1
Profit and loss account
Net interest income CHF m 145.0 128.1 16.9 13.2
Net commission and fee income CHF m 149.9 162.1 -12.3 -7.6
Income from financial transactions CHF m 20.0 69.6 -49.6 -71.3
Gross operating income CHF m 348.0 495.6 -147.6 -29.8
Personnel expenses CHF m 98.7 95.9 2.7 2.9
Operating expenses CHF m 120.2 127.3 -7.1 -5.6
Result on ordinary business activity CHF m 102.4 228.0 -125.6 -55.1
Taxes CHF m 10.6 0.7 9.9 n/a
Profit for the year CHF m 91.8 257.3 -165.4 -64.3
Client assets under administration
Client assets under administration CHF m 42 975.3 45 390.7 -2 415.4 -5.3
Personnel (full-time equivalents)
Staff at year-end 574 466 108 23.2
The business year in comparison
5

6
Annual report
Annual report
In 2011, the world economy and the capital markets
were strongly affected by the political changes in
North Africa and the Middle East, by the devastating
effects of the tsunami and nuclear disaster in Japan,
and also by the ongoing debt crisis on both sides of
the Atlantic. The resulting turbulent market and currency
developments presented investors and the financial
industry as a whole with opportunities, but also
with many risks. In this challenging environment,
LGT Bank in Liechtenstein Ltd achieved a pleasing
business result.
In the 2011 business year, gross operating income de-
clined by CHF 147.6 million or 30 percent. This decrease
was largely attributable to a one-time extraordinary
effect, i.e. in the previous year the bank was able to
book extraordinary income of CHF 98.0 million from
shares in affiliated companies. Income from commission
business and services was down by 7.6 percent
to CHF 149.9 million. This was primarily due to the
restraint in making securities transactions shown by
our clients and to currency influences. In contrast, net
interest income rose by 13.2 percent to CHF 145.0
million thanks to the successful expansion of our onbalance-sheet
business. Largely as a result of losses in
value on own securities, income from financial transactions
decreased year on year by CHF 49.6 million.
Operating expenses fell by 2 percent to CHF 218.9
million, largely as a result of cost savings made with
business and office expenses. The cost/income ratio
climbed from 45 percent to 63 percent.
Profit for the year was down by 64.3 percent to CHF
91.8 million. This reduction was attributable, on the
one hand, to the previously-mentioned extraordinary
effect on the earnings side, and on the other from the
fact that the previous year’s result had benefitted from
the release in 2010 of provisions for general banking
risks totalling CHF 30 million, as well as from tax provisions
set aside in connection with the changes made
to the taxation system in Liechtenstein. At the end of
2011, LGT Bank in Liechtenstein Ltd continued to be
extremely well capitalized. The bank’s equity capital
ratio of 18.8 percent at the end of 2011 exceeded the
legally required 8 percent of risk-weighted exposure
by 135 percent.
On account of currency influences, client assets under
administration decreased by 5.3 percent to CHF 43.0
billion. The bank was successful in halting asset outflows.
In total, in the year under report, a positive net
new money result was again attained.
The shares of LGT Bank in Liechtenstein Ltd are wholly
owned by LGT Group Foundation. No own shares were
acquired or taken as pledge, either directly or indirectly.
LGT Bank in Liechtenstein Ltd is a part of the LGT Group,
a globally active private banking and asset management
group, which takes an integrated approach to
the management and development of the individual
Group companies. A separate annual report provides
information about LGT Group’s financial capacity,
expertise and development.
The basic economic conditions and the uncertain de-
velopment on the international financial markets will
also present major challenges in 2012. Against this
backdrop, the Liechtenstein financial center will benefit
from the economic and political stability of the country,
as well as from the strong currency and the expertise
in private banking gained over decades. As a longterm-oriented,
family-owned company with a very
strong capital base, we believe we are well positioned
to take full advantage of the opportunities that are
also presented by a difficult business environment. We
are convinced that our strong international business
presence, our long-term strategy, the quality and
commitment of our employees, and above all the trust
that our clients place in us, provide us with the key
prerequisites for our future success.
We thank you for the trust you have shown in us
and we look forward to continuing to be your
Liechtensteiner bank in 2012.
Thomas Piske
Chairman of the Board of Directors

Balance sheet
Assets (TCHF) Appendix 31.12.2011 31.12.2010 Change
absolute %
Cash and cash equivalents 2 346 525 237 662 2 108 863 887.3
Debt instruments of public authorities
and bills which are eligible for refinancing
at central banks 22 206 108 2 131 207 -1 925 099 -90.3
Due from banks 16 7 357 129 6 556 359 800 770 12.2
Due from clients 1, 16 8 265 449 7 715 681 549 768 7.1
of which mortgage loans 1, 16 2 237 641 1 983 732 253 909 12.8
Bonds and other fixed-interest
bearing securities 2, 3, 4, 23, 38 3 043 190 2 737 079 306 111 11.2
Equities and other non-fixedinterest
securities 2, 3, 4, 38 2 650 3 597 -947 -26.3
Participations 5, 7, 8, 38 220 220 0 0.0
Shares in affiliated companies 5, 6, 8, 21, 38 90 681 90 682 -1 0.0
Tangible assets 8 91 757 92 992 -1 235 -1.3
Other assets 40 2 050 380 2 050 007 373 0.0
Accrued income and prepaid expenses 41 785 41 284 501 1.2
Total assets 23 495 874 21 656 770 1 839 104 8.5
Liabilities (TCHF)
Due to banks 16 6 790 244 5 768 799 1 021 445 17.7
Due to clients 16, 24 11 619 419 9 876 265 1 743 154 17.6
Securitized liabilities 12, 25 784 028 875 252 -91 224 -10.4
Other liabilities 41 1 642 047 2 434 737 -792 690 -32.6
Accrued expenses and deferred income 44 324 37 188 7 136 19.2
Provisions 13, 26, 36 86 260 98 553 -12 293 -12.5
Subordinated liabilities 39 1 005 1 145 -140 -12.2
Provisions for general banking risks 13 644 500 644 500 0 0.0
Share capital 14 291 201 291 201 0 0.0
Revenue reserves 15 1 500 500 1 371 500 129 000 9.4
Profit carried forward 502 347 155 44.7
Profit for the year 91 844 257 283 -165 439 -64.3
Total liabilities 23 495 874 21 656 770 1 839 104 8.5
Important This document is a non-binding English translation of the authoritative German annual report.
Balance sheet
7

8
Off-balance sheet transactions
Off-balance sheet (TCHF) Appendix 31.12.2011 31.12.2010 Change
Off-balance sheet transactions
absolute %
Contingent liabilities 1, 27 3 956 408 3 439 134 517 274 15.0
of which liabilities from guarantees and indemnity
agreements as well as from the furnishing of collateral 1, 27 3 956 408 3 439 134 517 274 15.0
Credit risks 57 298 96 711 -39 413 -40.8
of which irrevocable commitments 1 51 810 90 533 -38 723 -42.8
of which commitments to subscribe additional
contributions for shares or other equity securities 1 5 488 6 178 -690 -11.2
Derivative financial instruments
Positive replacement values 30, 40 1 453 594 1 700 021 -246 427 -14.5
Negative replacement values 30, 41 1 530 438 1 955 204 -424 766 -21.7
Contract volume 30 82 559 475 90 332 105 -7 772 630 -8.6
Fiduciary transactions 29 565 331 585 724 -20 393 -3.5
Important This document is a non-binding English translation of the authoritative German annual report.

Profit and loss account
Profit and loss account (TCHF) Appendix 2011 2010 Change
absolute %
Interest earned 32, 33 254 903 208 252 46 651 22.4
Interest paid -109 925 -80 165 -29 760 37.1
Net interest income 144 978 128 087 16 891 13.2
Equities and other non-fixed-interest securities 0 0 0 0.0
Participations 657 657 0 0.0
Shares in affiliated companies 29 98 029 -98 000 -100.0
Current income from securities 686 98 686 -98 000 -99.3
Commission income from lending business 5 947 6 014 -67 -1.1
Commission income from securities and investment business 182 883 198 769 -15 886 -8.0
Commission from other services 10 095 10 490 -395 -3.8
Income from commission business and services 198 925 215 273 -16 348 -7.6
Commission paid -49 067 -53 154 4 087 -7.7
Net commission and fee income 149 858 162 119 -12 261 -7.6
Income from financial transactions 19 993 69 639 -49 646 -71.3
of which from trading 33 60 237 62 694 -2 457 -3.9
Other ordinary income 42 32 455 37 088 -4 633 -12.5
Gross operating income 347 970 495 619 -147 649 -29.8
Personnel expenses 34 -98 696 -95 942 -2 754 2.9
Operating expenses 35 -120 171 -127 299 7 128 -5.6
Business expenses -218 867 -223 241 4 374 -2.0
Gross profit 129 103 272 378 -143 275 -52.6
Amortization of intangible assets and depreciation of
tangible assets -5 705 -5 697 -8 0.1
Other ordinary expenses 36, 43 -19 834 -40 399 20 565 -50.9
Value adjustments on receivables and funds allocated
to provisions for contingent liabilities and credit risks -1 433 -98 -1 335 n/a
Income from the release of value adjustments on
receivables and from provisions for credit risks 310 1 823 -1 513 -83.0
Amortization of participations, shares in affiliated
companies and securities held as non-current assets 0 0 0 0.0
Result on ordinary business activity 102 441 228 007 -125 566 -55.1
Income tax -10 597 2 488 -13 085 -525.9
Other taxes 0 -3 212 3 212 -100.0
Income from the release of provisions for
general banking risks 0 30 000 -30 000 -100.0
Profit for the year 91 844 257 283 -165 439 -64.3
Important This document is a non-binding English translation of the authoritative German annual report.
Profit and loss account
9

10
Appropriation of net profit
Appropriation of net profit – proposal of the Board of Directors 2011 2010
to the general meeting of shareholders (CHF)
Profit for the year 91 844 177.80 257 282 828.21
Profit carried forward 501 600.62 347 124.41
Accumulated profit for the year 92 345 778.42 257 629 952.62
Profit distribution
Appropriation of net profit
Allocation to legal reserves 0.00 0.00
Allocation to statutory reserves 0.00 0.00
Allocation to other reserves 44 000 000.00 129 000 000.00
Dividend on company capital 48 048 132.00 128 128 352.00
Other profit distribution 0.00 0.00
Profit carried forward 297 646.42 501 600.62
Important This document is a non-binding English translation of the authoritative German annual report.

Flow of funds statement
Flow of funds statement (TCHF) 2011 2010
Flow of funds from operating result (internal financing)
Source Application Source Application
of funds of funds of funds of funds
Profit for the year 91 844 257 283
Depreciation of non-current assets 5 705 5 697
Value adjustments and provisions 12 293 47 684
Accrued income and prepaid expenses 501 6 972
Accrued expenses and deferred income 7 137 10 687
Other items 0 0
Previous-year dividend 128 128 119 392
Balance 36 236 92 189
Flow of funds from changes to non-current assets
Participations 0 0 0 0
Shares in affiliated companies 1 0 400 368 0
Securities and precious metals as non-current assets 0 36 1 827 0
Properties 0 3 111 0 1 238
Other tangible assets 0 1 359 0 14
Balance
Flow of funds from banking operations
Medium and long-term business (> 1 year)
4 505 400 943
Due to banks 3 333 51 336
Due to clients 121 2 387
Bonds 164 728 296 819
Medium-term notes 25 992 17 648
Other liabilities 32 795 4 599
Due from banks 110 460 50 395
Due from clients (excl. mortgage loans) 97 367 59 659
Mortgage loans 97 764 62 554
Other receivables
Short-term business (≤ 1 year)
37 805 400 159
Due to banks 1 018 112 805 985
Due to clients 1 743 033 2 291 524
Other liabilities 778 113 1 455 495
Due from banks 690 310 2 481 705
Due from clients 354 637 658 146
Trading positions in securities and precious metals
Securities and precious metals held as current assets
290 327 77 167
(excl. trading positions) 1 682 612 2 495 025
Other receivables
Liquid funds
189 507 1 278 809
Cash and cash equivalents -2 108 863 -254 220
Balance 40 741 493 132
Total 40 741 40 741 493 132 493 132
Important This document is a non-binding English translation of the authoritative German annual report.
Flow of funds statement
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12
Appendix to the financial statement
Notes on business activity
General points
LGT Bank in Liechtenstein Ltd. with its registered office
in Vaduz operates as a universal bank and securities
trader. In Summer 2011, the company opened a
branch office in Hong Kong. It maintains representative
offices in Bahrain, Chur, Davos, Geneva, Lugano and
Montevideo.
At 31 December 2011, LGT Bank in Liechtenstein
employed 574 persons on a full-time equivalent basis
(466 in the previous year). In 2011, the average headcount
amounted to 486 persons (465).
As a universal bank, LGT Bank in Liechtenstein is active
in the fields of wealth management (commission business
and services) and trading, as well as in money
market and lending business.
Wealth management
LGT Bank in Liechtenstein is one of the leading international
names in traditional private banking. The
bank offers a broad spectrum of products and services
that enable clients to choose the best solution to suit
their needs. Most earnings from commission business
and services stem, among other things, from wealth
management. The commission business and services
also represents the bank’s main source of revenue.
Appendix to the financial statement
Money market business
Within the scope of money market business, money
in the form of call money, time deposits and fiduciary
investments is deposited with the bank. Insofar as these
funds are not required for lending business, they are
placed with first-class banks, predominantly in Western
Europe. These investments are being made in the form
of easily convertible money market paper (certificates
of deposit, Euro commercial papers). Despite its focus
on private banking, interest margin business represents
an important earnings stream for the bank.
Trading business
LGT Bank in Liechtenstein operates trading transactions
for clients and for its own account in securities, foreign
exchange and precious metals. The bank trades for its
own account in accordance with conservative principles.
Derivative instruments are used mostly for hedging
purposes.
Lending business
Most lending takes the form of Lombard loans and
mortgages on residential property. Mortgages are
granted primarily for financing properties in Liechtenstein
and in Switzerland. Property financing in selected
other countries is offered as part of integrated wealth
management.
Statement regarding the correctness of the financial statements and the annual report
We confirm that the financial statements have been prepared in conformance with the prevailing accounting
policies and standards, and that to our knowledge they present a true and fair picture of the assets and liabilities,
as well as the financial, earnings and profitability position of the bank. The annual report contains all the required
information about the course of business, the results of operations and the position of the bank. It provides an
accurate picture of the actual situation, and outlines the most important risks and uncertainties.
Thomas Piske Olivier de Perregaux
Chairman of the Board of Directors Member of the Board of Directors

Accounting policies
Basic principles
The annual accounts are prepared in accordance with
the act and ordinance on banks and investment firms
(Banking Act, Bank Ordinance) and applicable provisions
of the Law on Persons and Companies (PGR).
Consolidation
LGT Bank in Liechtenstein does not prepare consolidated
accounts because the parent company, the
LGT Group Foundation, is itself subject to the Banking
Act and prepares annual accounts at Group level.
The consolidated accounts are available for inspection
at LGT Marketing & Communications at the offices
of LGT Bank in Liechtenstein Ltd., Herrengasse 12,
FL-9490 Vaduz, and can be accessed on the internet
under www.lgt.com.
Recording and reporting of transactions
All business transactions are recorded in the company‘s
accounts on the date of the transaction, and are
valued from this date for the calculation of earnings.
Foreign currency conversions
Assets and liabilities denominated in foreign currencies
are converted at the rates applicable on the balance
sheet date. For income and expenditure, the rates
applicable at the time of the transaction are used.
Futures contracts are valued at residual maturity rates.
The balance sheet and income statement positions of
foreign operations are converted at the rates prevailing
on the balance sheet date.
Conversion rates
31.12.2011 31.12.2010
1 EUR 1.2151 1.2564
1 USD 0.9356 0.9367
1 GBP 1.4545 1.4629
1 SGD 0.7218 0.7310
1 HKD 0.1205 0.1205
100 JPY 1.2158 1.1544
Appendix to the financial statement
13

14
Cash and cash equivalents, debt instruments of
public authorities and bills which are eligible for
refinancing at central banks, and claims on banks
Cash and cash equivalents and claims on banks are
reported in the balance sheet at par value. Registered
money market claims, rescriptions and treasury certificates
are reported inclusive of amortized discounts.
Due from clients
Non-impaired claims against clients are reported in the
balance sheet at nominal value. Impaired claims, i.e.
claims where it appears unlikely that the debtor will be
able to meet his future obligations, are valued on an
individual basis and the decrease in value is covered by
specific value adjustments. Loans are rated as impaired
at the latest if the contractual payments for capital
and/or interest have been outstanding for more than
90 days. Interest which has been outstan ding for more
than 90 days is regarded as overdue. Overdue interest
and interest which is in danger of not being received,
is no longer recovered but is instead allocated to value
adjustments.
The decrease in value is measured according to the difference
between the book value of the claim and the
probable recoverable amount, taking account of the
estimated net present value on the balance sheet date.
The net present value calculation is based on the current
interest rate of the claim and the expected dates of the
future incoming payments. Specific value adjustments
are deducted directly from the corresponding claims.
In addition to the specific value adjustments, the bank
makes portfolio value adjustments to cover any latent
default risks present on the balance sheet date. In this
connection, equivalent claims not entitled to specific
value adjustments are grouped together (portfolios).
A calculation model is then applied to each portfolio to
determine the necessary portfolio value adjustments as
soon as a latent credit risk is signalled by predetermined
indicators. Portfolio value adjustments are offset against
the corresponding claims. Changes to the portfolio value
adjustments are entered in the profit and loss account.
Appendix to the financial statement
Impaired claims are reclassified as performing if the
outstanding capital amounts and interest are again
paid within the specified period under contractual
agreements.
Trading positions comprising securities and
precious metals
Trading positions are valued at the market value on the
balance sheet date. For positions which are not traded
on a recognized exchange or for which there is no
representative market, valuation is carried out at the
lower of cost or market.
Securities and precious metals held as current
and non-current assets
Current assets are valued at the lower of cost or market.
Money market papers are measured at amortized cost.
Fixed-interest bearing securities assigned to non-current
assets are reported in the balance sheet at the repayment
amount. Premiums and discounts which have not
yet been amortized are reported as accrued items. Only
those debt instruments which are kept until maturity
are recorded as non-current assets.
Precious metals held as current assets are valued at
the market value on the balance sheet date. Precious
metals held as non-current assets are reported at cost
minus necessary value adjustments.
Shares in affiliated companies and participations
Shares in affiliated companies and participations are
valued at cost, taking into account necessary value
adjustments.
Shares in infrastructure companies are also reported in
the balance sheet under participations. These items are
insignificant in capital and voting shares.
Subordinated loans to affiliated companies are reported
at the nominal value.

Tangible assets
Properties for the bank’s own use are valued at cost,
including any appreciating investments, less depreciation
over a fixed useful life (generally 50 years).
Any building work carried out in rented properties is
depreciated over the term of the rental agreement.
Other tangible assets such as machinery, furniture
and vehicles are depreciated over their useful life
(normally 3 – 5 years).
Derivatives
The positive and negative replacement values of all
derivative financial instruments are reported under the
positions other assets or other liabilities. The positive
and negative replacement values are reported in the
balance sheet as gross figures and valued at fair value.
If interest rate business positions are hedged with
derivatives, the difference between the fair value
valuation and the accrual method is reported in the
compensation account.
Repurchase and reverse repurchase transactions
(Repo transactions)
Repo transactions are used to refinance and fund money
market transactions. They are entered in the balance
sheet as advances against collateral and cash contributions
or with pledging of securities held on own account.
Securities provided to serve as cover thus continue to be
posted in the corresponding balance sheet positions –
securities received to serve as collateral are not reported
in the balance sheet. Interest resulting from the transactions
is posted as net interest income.
Securities lending and borrowing transactions
Securities lending is recorded at the value of cash
deposits which have been received or made, including
interest accrued.
Securities which have been borrowed or accepted as
collateral are only recorded in the balance sheet if the
bank gains control of the contractual rights contained in
these securities. Securities lent or provided as collateral
are only taken off the balance sheet if the bank loses
the contractual rights associated with these securities.
The market values of the securities which have been
either borrowed or lent are monitored daily so that
additional collateral can be provided or requested
where necessary.
Fees arising from securities lending and repurchase
transactions, which have been received or paid, are
entered as interest earned and interest paid.
Amounts due to banks and clients
Amounts due to banks and clients are reported in the
balance sheet at nominal values.
Securitized liabilities
Securitized liabilities are reported in the balance sheet
at the value of the repayment amount.
Other liabilities
Derivatives are reported at their fair value. The other
items (settlement accounts, coupons etc.) are reported
at their nominal value or the value of the repayment
amount.
Subordinated debt
Securitized subordinated debt is entered in the balance
sheet at the value of the repayment amount. Non-securitized
subordinated debt is reported at the nominal
value.
Appendix to the financial statement
15

16
Value adjustments and provisions
In accordance with prudent accounting practice, specific
value adjustments and provisions are made for all
identifiable risks. To cover latent default risks, which,
as experience has shown, exist in a loan portfolio, portfolio
value provisions are also made based on a systematic
approach. Value adjustments are offset directly
against the corresponding asset position. Provisions
are formed for uncertain liabilities and for threatened
losses which are likely or certain on the balance sheet
reporting date, but whose level or date of occurrence
is uncertain. Provisions are reported under the same
name in the balance sheet.
Taxes
Taxes accruing to the result for the period under review
are recorded as expenses in the accounting period in
which the corresponding profit has occurred. For value
adjustments and provisions recognized and entered
against tax only, a provision for deferred taxes is made
against the profit and loss account.
Provisions for general banking risks
Provisions for general banking risks are formed to hedge
against latent risks in the bank’s operating activities.
Appendix to the financial statement
Risk management
The risk policy complies with internal requirements and
guidelines, Liechtenstein Banking Law, FMA communiqué
no. 10/2009 “Risk-compatible capital adequacy
requirements, risk management and control”, the risk
management guidelines of the Swiss Bankers Association
and the principles of the Basel Committee on
Banking Supervision.
The Board of Directors has overall responsibility for
implementing risk policy. Whereas the functions of risk
management are allocated to operational units, the
Executive Board is responsible for overall risk control.
The independent Risk Controlling Department monitors
compliance with the issued provisions.
Market risks
The bank’s business activities mean that it is mainly
exposed to risks associated with interest rate changes
and share price and foreign currency fluctuations.
Whereas the Trading Committee is responsible for controlling
risks resulting from trading activities, the Asset
and Liability Committee is responsible for controlling
the risks associated with changes in interest rates.
These bodies restrict the risk positions by means of
volume and sensitivity guideline limits. An analysis of
the aggregate risks and the simulation of worst-case
scenarios are carried out on a regular basis.

Credit risks
Lending activities are primarily carried out in the interbank
market or in secured form in private client business.
The bank pursues a conservative lending policy
where the same guidelines are applied for both monetary
loans and guarantee credits. By strict limitation of
the default risks, the formation of cluster and country
risks is also countered. An internal rating procedure is
applied as an instrument for efficient risk management
and risk-adjusted calculation of conditions. Detailed
reporting ensures that the Executive Board is constantly
informed about developing risks.
Operational risks
The operational risk is defined as the risk of loss resulting
from inadequate or failed internal processes, people
and systems or from external events. LGT Group has
established a Group-wide “Operational Risk Committee“
which provides the Executive Board with support in the
early identification of these risks and in implementing
appropriate measures. These tasks are based on the
principles stipulated in the “Sound Practices for the
Management and Supervision of Operational Risk”
issued by the Basel Committee on Banking Supervision.
The set guidelines ensure that risk management takes
suitable care of all risk categories.
Derivative financial instruments
Interest rate and currency swaps, forward rate agreements,
futures and share options are regularly used to
manage the bank’s own risk positions. Within the framework
of client business, foreign currency and precious
metals options are used in addition to the aforesaid
instruments.
Appendix to the financial statement
17

18
Notes on the balance sheet
1 Overview of collateral (TCHF) Mortgage- Other Without Total
Advances
Notes on the balance sheet
backed collateral collateral
Due from clients (excl. mortgage loans) 8 999 4 439 077 1 579 732 6 027 808
Mortgage loans
Residential properties 1 730 424 0 0 1 730 424
Office and business premises 207 312 0 0 207 312
Commercial and industrial premises 147 545 0 0 147 545
Other 152 360 0 0 152 360
Total 31.12.2011 2 246 640 4 439 077 1 579 732 8 265 449
Off-balance sheet transactions
31.12.2010 1 997 044 4 425 514 1 293 123 7 715 681
Contingent liabilities 236 142 230 3 813 942 3 956 408
Irrevocable commitments 51 810 0 0 51 810
Commitments to subscribe additional contri-
butions for shares or other equity securities 0 0 5 488 5 488
Total 31.12.2011 52 046 142 230 3 819 430 4 013 706
31.12.2010 87 630 165 328 3 282 887 3 535 845
Impaired due amounts (TCHF) Gross amount Estimated realization Net amount Specific value
due value of collateral due adjustments
31.12.2011 11 329 3 912 7 417 7 417
31.12.2010 12 739 5 422 7 317 7 317

2 Trading positions (TCHF) Book value Cost Market value
Trading positions comprising
31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
securities and precious metals
Debt instruments
listed (traded on a
105 135 41 511 105 189 41 712 105 135 41 511
recognized exchange) 105 135 41 511 105 189 41 712 105 135 41 511
unlisted 0 0 0 0 0 0
of which own bonds and
medium-term notes 0 0 0 0 0 0
Equity paper 2 650 3 597 2 679 2 941 2 650 3 597
of which own equity paper 0 0 0 0 0 0
Precious metals 561 992 334 342 561 992 334 342 561 992 334 342
Total 669 777 379 450 669 860 378 995 669 777 379 450
of which eligible as security
for central bank borrowings 170 0 170 0 170 0
Notes on the balance sheet
19

20 Notes on the balance sheet
3 Securities and precious metals Book value Cost Market value
held as current assets 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
(excl. trading positions) (TCHF)
Debt instruments 3 144 163 4 826 775 3 197 195 4 835 612 3 147 342 4 832 707
of which own bonds and
medium-term notes 0 0 0 0 0 0
Equity paper 0 0 0 0 0 0
of which qualified
participations (at least
10% of capital or votes) 0 0 0 0 0 0
Precious metals 0 0 0 0 0 0
Total 3 144 163 4 826 775 3 197 195 4 835 612 3 147 342 4 832 707
of which eligible as security
for central bank borrowings 1 537 565 3 279 053 1 554 391 3 281 809 1 538 525 3 281 815
4 Securities and precious metals Book value Cost Market value
held as non-current assets
(TCHF)
31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Debt instruments 0 0 0 0 0 0
of which own bonds and
medium-term notes 0 0 0 0 0 0
of which valued according
to the accrual method
of which valued at the lower
0 0 0 0 0 0
of cost or market 0 0 0 0 0 0
Equity paper
of which qualified
participations (at least
0 0 0 0 0 0
10% of capital or votes) 0 0 0 0 0 0
Precious metals 941 905 1 791 1 791 941 905
Total 941 905 1 791 1 791 941 905
of which eligible as security
for central bank borrowings 0 0 0 0 0 0

5 Participations and shares in affiliated companies (TCHF) 31.12.2011 31.12.2010
Participations
with market value 0 0
without market value 220 220
Total
Shares in affiliated companies
220 220
with market value 0 0
without market value 17 067 17 067
Subordinated claims against affiliated companies 73 614 73 615
Total 90 681 90 682
6 Affiliated companies Business Share % share % share Business
Banks and investment firms
LGT Bank in Liechtenstein
activity capital of votes of capital result TCHF
(Cayman) Ltd., Grand Cayman bank USD 600 000 100 83 9 662
LGT Bank (Ireland) Ltd., Dublin bank USD 50 000 000 75 25 2 255
The capital of LGT Bank in Liechtenstein (Cayman) Ltd. is divided into 500 000 ordinary shares and 100 000 participating shares. Both categories of share have
a par value of USD 1 per share. The participation comprises 100% of the ordinary shares, which have a preferential dividend.
At 31 December 2011, the shares in banks and investment firms shown under the shares in affiliated companies item amounted to TCHF 57 068 (57 068 in the
previous year).
7 Participations
The companies listed under participations serve only as infrastructure and are insignificant in terms of the share of capital and votes.
There are no shares in banks and investment firms under participations.
Notes on the balance sheet
21

8 Statement of changes in non-current assets (TCHF) Cost Accumulated Book value
depreciation/
write-ups
31.12.2010
Total participations (minority holdings) 220 0 220
Total shares in affiliated companies 116 765 -26 083 90 682
Total securities and precious metals held as non-current assets 1 791 -886 905
Total intangible assets
Properties
0 0 0
Bank premises 186 982 -99 065 87 917
Other properties 11 516 -6 455 5 061
Other tangible assets 232 -218 14
Total tangible assets 198 730 -105 738 92 992
Fire insurance value of properties 192 582
Fire insurance value of other tangible assets 20 203
9 Intangible assets
At 31 December 2011 and 31 December 2010, there were no capitalized intangible assets.
10 Pledged or assigned assets and assets subject to reservation of ownership (TCHF)
Pledged or assigned assets and assets subject to reservation of ownership,
without securities lending or repurchase transactions
31.12.2011 31.12.2010
Book value of pledged or assigned (assigned as collateral) assets 681 343 549 633
Actual liabilities 374 876 252 997
22 Notes on the balance sheet
There are no assets subject to reservation of ownership.
Securities lending and repurchase transactions
Receivables from cash deposits in connection with securities borrowing and
reverse repurchase transactions 0 0
Liabilities from cash deposits in connection with securities lending and
repurchase transactions 0 0
Own securities lent or provided as collateral within the scope of securities lending,
borrowing transactions and transferred from repurchase transactions 561 857 275 882
of which capable of being resold or pledged without restrictions 561 857 175 719
Securities borrowed or accepted as collateral within the scope of securities lending,
borrowing transactions and reverse repurchase agreements which are capable of
being resold or further pledged without restrictions 1 993 281 733 588
of which resold or further pledged securities 310 976 165 752

Investments Disinvestments Reclassifications Write-ups Depreciation Book value
31.12.2011
0 0 0 0 0 220
0 -1 0 0 0 90 681
0 0 0 36 0 941
0 0 0 0 0 0
3 012 0 0 0 -5 189 85 740
99 0 0 0 -333 4 827
1 359 0 0 0 -183 1 190
4 470 0 0 0 -5 705 91 757
198 514
21 079
11 Liabilities in respect of own pension funds (TCHF) 31.12.2011 31.12.2010
Total liabilities 21 384 12 383
12 Outstanding bonds Interest Year of issue Earliest Currency Par value
at 31.12.2011 rate % redemption date TCHF
LGT GIM Index Certificates 0.0 up to 2004 28.2.2012 EUR 62 345
LGT GIM Index Certificates II 0.0 up to 2006 30.6.2014 EUR 191 870
LGT GIM Index Certificates II/2 0.0 2006 31.3.2016 EUR 52 618
LGT GIM Index Certificates III 0.0 up to 2008 31.7.2016 EUR 118 122
LGT GIM Index Certificates IV 0.0 ongoing 31.3.2018 EUR 835
Crown Absolute Return Index Certificates 0.0 ongoing 30.11.2013 EUR 5 551
Crown Absolute Return Index Certificates II 0.0 ongoing 31.7.2014 EUR 1 636
Crown Alternative SV Index Certificates 0.0 ongoing 30.6.2017 EUR 56 965
LGT GATS Index Certificates 0.0 ongoing 30.9.2014 EUR 58 029
LGT M-Smart Allocator Index Certificates 0.0 ongoing 31.8.2017 EUR 54 503
LGT EX EQ EM Leaders Certificates 0.0 ongoing 31.12.2027 USD 2 359
LGT EX EQ GEM Index Certificates 0.0 ongoing 31.12.2027 USD 2 778
LGT EX FI EM Index Certificates 0.0 ongoing 31.12.2027 USD 11 794
LGT EX HF GIM Index Certificates 0.0 ongoing 31.12.2027 USD 23 500
LGT EX HF GATS Index Certificates 0.0 ongoing 31.12.2027 USD 16 615
For product explanations see appendix 45 on page 40
Notes on the balance sheet
23

24 Notes on the balance sheet
13 Value adjustments and provisions/ Status Application
provisions for general banking risks (TCHF) 31.12.2010
Value adjustments for default risks
Specific value adjustments 7 317 -815
Flat-rate specific value adjustments (incl. such adjustments for country risks) 0 0
Portfolio value adjustments 6 165 0
Provisions for contingent liabilities and credit risks 470 0
Provisions for other business risks 5 314 -1 343
Provisions for taxes and deferred taxes 91 503 -22 975
Other provisions 1 266 -37
Total value adjustments and provisions 112 035 -25 170
less:
Value adjustments -13 482 –
Total provisions as per the balance sheet 98 553 –
Provisions for general banking risks 644 500 –
See also Point 36
14 Share capital 31.12.2011 31.12.2010
(TCHF) Total Number Capital Total Number Capital
nominal of shares entitled to nominal of shares entitled to
value a dividend value a dividend
Share capital 291 201 2 912 008 291 201 291 201 2 912 008 291 201
Total 291 201 2 912 008 291 201 291 201 2 912 008 291 201
No authorized capital or contingent capital exists.
Major shareholders and groups of 31.12.2011 31.12.2010
shareholders linked by voting rights Nominal % Nominal %
with voting right LGT Group Foundation 291 201 100.0 291 201 100.0
The economic beneficiary of LGT Group Foundation is the Prince of Liechtenstein Foundation in Vaduz. The main economic beneficiary of the Prince of
Liechtenstein Foundation is the reigning prince of Liechtenstein, H.S.H. Prince Hans-Adam II von und zu Liechtenstein.

Recoveries, overdue interest, New allocations out of Releases to Status
currency differences P/L account P/L account 31.12.2011
-101 1 273 -257 7 417
0 0 0 0
295 160 0 6 620
-15 0 -53 402
-8 188 0 4 151
0 11 881 0 80 409
0 69 0 1 298
171 13 571 -310 100 297
– – – -14 037
– – – 86 260
– 0 0 644 500
15 Equity statement (TCHF)
Equity capital at the start of the business year Total equity capital at the end of the
Share capital paid in 291 201 business year (prior to profit distribution) 2 528 547
Capital reserves 0 of which
Legal reserves 218 500 Share capital paid in 291 201
Reserves for own shares 0 Capital reserves 0
Statutory reserves 0 Legal reserves 218 500
Other reserves 1 153 000 Reserves for own shares 0
Provisions for general banking risks 644 500 Statutory reserves 0
Accumulated profit for the year 257 630 Other reserves 1 282 000
Total equity capital at the start of the Provisions for general banking risks 644 500
business year (prior to profit distribution) 2 564 831 Accumulated profit for the year 92 346
+/- capital increase/capital reduction 0
+ premium 0
+ Release of provisions for
general banking risks 0
- dividend from the previous year’s profit -128 128
+ annual profit for the business year 91 844
Total equity capital at the end of the
business year (prior to profit distribution) 2 528 547
Notes on the balance sheet
25

26 Notes on the balance sheet
16 Maturity structure of assets, liabilities and provisions On demand Redeemable
(TCHF)
Assets
Cash and cash equivalents 2 346 525 –
Debt instruments of public authorities and bills which
are eligible for refinancing at central banks 0 0
Due from banks 1 979 295 0
Due from clients 52 867 1 241 612
of which mortgage loans 2 524 169 427
Trading positions comprising securities and precious metals 669 777 –
Securities and precious metals held as current assets
(excl. trading positions) 2 938 055 –
Securities and precious metals held as non-current assets 941 0
Other assets 51 487 0
Total assets 31.12.2011 8 038 947 1 241 612
Liabilities and provisions
31.12.2010 5 676 538 1 463 411
Due to banks 4 489 342 0
Due to clients 4 683 422 5 800 592
Savings accounts 0 697 374
Other liabilities to clients 4 683 422 5 103 218
Securitized liabilities 0 0
Issued bonds 0 0
of which medium-term notes – –
Other securitized liabilities 0 0
Provisions (excl. provisions for general banking risks) 86 260 0
Subordinated liabilities 0 0
Other liabilities 161 418 0
Total liabilities and provisions 31.12.2011 9 420 442 5 800 592
31.12.2010 7 782 565 5 727 546
Of the securities reported in the balance sheet under bonds and other fixed-interest bearing securities, instruments amounting to TCHF 1 209 710
(1 051 820 in the previous year) will become due in 2012. Issued bonds due in 2012 amount to TCHF 92 826 (45 399 in the previous year).

Due within Due between Due between Due after immobilized Total
3 months 3 to 12 months 12 months to 5 years
5 years
– – – – – 2 346 525
200 089 6 019 0 0 – 206 108
3 213 547 1 730 506 368 454 65 327 – 7 357 129
4 888 184 688 620 1 208 467 185 699 – 8 265 449
789 864 254 729 842 028 179 069 – 2 237 641
– – – – – 669 777
– – – – – 2 938 055
0 0 0 0 – 941
956 685 532 345 48 402 30 743 92 228 1 711 890
9 258 505 2 957 490 1 625 323 281 769 92 228 23 495 874
10 436 817 2 347 235 1 314 201 325 108 93 460 21 656 770
1 791 253 505 439 4 210 0 – 6 790 244
943 529 189 368 2 508 0 – 11 619 419
0 0 0 0 – 697 374
943 529 189 368 2 508 0 – 10 922 045
72 504 20 322 493 348 197 854 – 784 028
72 504 20 322 493 348 197 854 – 784 028
10 159 20 322 65 521 28 506 – 124 508
0 0 0 0 – 0
0 0 0 0 – 86 260
0 85 900 20 – 1 005
850 162 609 832 53 748 11 212 – 1 686 372
3 657 448 1 325 046 554 714 209 086 0 20 967 328
3 370 501 1 345 040 539 304 326 983 0 19 091 939
Notes on the balance sheet
27

28 Notes on the balance sheet
17.1 Claims on affiliated companies (TCHF) 31.12.2011 31.12.2010
Due from banks 1 123 841 1 408 894
Due from clients 4 158 443 3 862 488
of which due from qualified participants (LGT Group Foundation) 1 280 500 1 022 000
Bonds and other fixed-interest bearing securities 104 853 36 711
Total 5 387 137 5 308 093
17.2 Liabilities to affiliated companies (TCHF) 31.12.2011 31.12.2010
Due to banks 4 999 503 3 916 569
Due to clients 554 444 162 712
of which due to qualified participants (LGT Group Foundation) 815 672
Securitized liabilities 0 0
Subordinated liabilities 0 0
Total 5 553 947 4 079 281
17.3 Loans to governing bodies (TCHF) 31.12.2011 31.12.2010
Members of the Board of Directors 4 871 4 536
Members of the Executive Board 4 501 5 266
Total 9 372 9 802
17.4 Transactions with closely associated persons
Transactions with closely associated persons such as securities transactions, payment transactions, lending facilities and interest
on deposits were made under the same terms and conditions as applicable to third parties.

18 Breakdown of balance sheet according to domicile (TCHF) 31.12.2011 31.12.2010
Domestic Abroad Domestic Abroad
Assets
Cash and cash equivalents
Debt instruments of public authorities and bills
2 346 490 35 237 662 0
which are eligible for refinancing at central banks 0 206 108 2 131 207 0
Due from banks 2 014 598 5 342 531 2 464 545 4 091 814
Due from clients (excl. mortgage loans) 1 841 448 4 186 360 1 669 071 4 062 878
Mortgage loans 2 119 737 117 904 1 942 277 41 455
Bonds and other fixed-interest bearing securities 112 3 043 078 114 2 736 965
Equities and other non-fixed-interest securities 2 650 0 3 585 12
Participations 66 154 66 154
Shares in affiliated companies 70 000 20 681 70 000 20 682
Intangible assets 0 0 0 0
Tangible assets 90 485 1 272 92 992 0
Other assets 1 240 648 809 732 1 489 725 560 282
Accrued income and prepaid expenses 13 129 28 656 12 683 28 601
Total assets 9 739 363 13 756 511 10 113 927 11 542 843
Liabilities
Due to banks 4 294 859 2 495 385 3 899 567 1 869 232
Due to clients (excl. savings accounts) 5 688 415 5 233 630 5 274 121 3 951 275
Savings accounts 592 060 105 314 547 037 103 832
Securitized liabilities 784 028 0 875 252 0
Other liabilities 700 284 941 763 1 713 520 721 217
Accrued expenses and deferred income 33 059 11 265 34 158 3 030
Provisions 86 072 188 98 553 0
Subordinated liabilities 1 005 0 1 145 0
Provisions for general banking risks 644 500 0 644 500 0
Share capital 291 201 0 291 201 0
Legal reserves 218 500 0 218 500 0
Other reserves 1 282 000 0 1 153 000 0
Profit carried forward 502 0 347 0
Profit for the year 91 844 0 257 283 0
Total liabilities 14 708 329 8 787 545 15 008 184 6 648 586
Balance sheet items are broken down based on the client's domicile, mortgage loans by the location of the property.
Notes on the balance sheet
29

30 Notes on the balance sheet
19 Breakdown of assets according to 31.12.2011
country/country group TCHF %
Country
Liechtenstein 3 823 051 16.3
Switzerland 5 916 312 25.2
Europe excl. FL/CH 7 772 407 33.1
North America 757 548 3.2
Caribbean 3 959 506 16.9
Latin America 77 224 0.3
Africa 19 259 0.1
Asia 786 847 3.3
Oceania 383 720 1.6
Total assets 23 495 874 100.0
Breakdown of assets according to 31.12.2010
country/country group
Country
TCHF %
Liechtenstein 3 431 631 15.8
Switzerland 6 682 296 30.9
Europe excl. FL/CH 6 165 146 28.5
North America 659 617 3.0
Caribbean 3 574 377 16.5
Latin America 55 937 0.3
Africa 25 680 0.1
Asia 659 496 3.0
Oceania 402 590 1.9
Total assets 21 656 770 100.0
20 Breakdown of balance sheet according to currencies (TCHF)
Assets
Cash and cash equivalents
Debt instruments of public authorities and bills
which are eligible for refinancing at central banks
Due from banks
Due from clients (excl. mortgage loans)
Mortgage loans
Bonds and other fixed-interest bearing securities
Equities and other non-fixed-interest securities
Participations
Shares in affiliated companies
Intangible assets
Tangible assets
Other assets
Accrued income and prepaid expenses
Total assets
Delivery claims from forex spot, forex futures
and forex options transactions
Total assets
Liabilities
Due to banks
Due to clients (excl. savings accounts)
Savings accounts
Securitized liabilities
Other liabilities
Accrued expenses and deferred income
Provisions
Subordinated liabilities
Provisions for general banking risks
Share capital
Legal reserves
Other reserves
Profit carried forward
Profit for the year
Total liabilities
Delivery liabilities from forex spot, forex futures
and forex options transactions
Total liabilities
Net position per currency

CHF EUR USD Other Total
2 337 526 6 871 851 1 277 2 346 525
0 182 021 0 24 087 206 108
2 152 058 2 047 123 2 500 035 657 913 7 357 129
3 384 676 1 156 491 967 577 519 064 6 027 808
2 122 118 15 225 6 642 93 656 2 237 641
1 541 817 601 752 298 921 600 700 3 043 190
528 1 480 642 0 2 650
220 0 0 0 220
87 068 0 0 3 613 90 681
0 0 0 0 0
90 485 0 0 1 272 91 757
1 483 598 0 76 566 706 2 050 380
18 425 5 583 8 208 9 569 41 785
13 218 519 4 016 546 3 782 952 2 477 857 23 495 874
20 369 256 12 940 049 30 912 549 12 759 031 76 980 885
33 587 775 16 956 595 34 695 501 15 236 888 100 476 759
1 324 657 1 731 224 2 513 889 1 220 474 6 790 244
3 057 396 2 606 660 3 562 394 1 695 595 10 922 045
682 881 10 812 3 681 0 697 374
121 280 605 703 57 045 0 784 028
1 565 110 71 099 4 985 853 1 642 047
35 286 2 334 1 371 5 333 44 324
83 632 569 1 871 188 86 260
1 005 0 0 0 1 005
644 500 0 0 0 644 500
291 201 0 0 0 291 201
218 500 0 0 0 218 500
1 282 000 0 0 0 1 282 000
502 0 0 0 502
91 844 0 0 0 91 844
9 399 794 5 028 401 6 145 236 2 922 443 23 495 874
24 167 521 11 950 687 28 563 462 12 157 070 76 838 740
33 567 315 16 979 088 34 708 698 15 079 513 100 334 614
20 460 -22 493 -13 197 157 375 142 145
Notes on the balance sheet
31

32 Notes on the balance sheet
21 Subordinated assets (TCHF) 31.12.2011 31.12.2010
Balance sheet items
Bonds and other fixed-interest bearing securities 25 683 15 147
Shares in affiliated companies 73 614 73 615
Total 99 297 88 762
22 Debt instruments of public authorities and bills which are eligible 31.12.2011 31.12.2010
for refinancing at central banks (TCHF)
Debt instruments of public authorities 206 108 2 131 207
Bills 0 0
Total 206 108 2 131 207
23 Bonds and other fixed-interest bearing securities (TCHF) 31.12.2011 31.12.2010
Money market paper 410 781 384 844
of which from public sector issuers 0 0
of which from other issuers 410 781 384 844
Bonds 2 632 409 2 352 235
of which from public sector issuers 48 527 18 076
of which from other issuers 2 583 882 2 334 159
Total 3 043 190 2 737 079

24 Due to clients (TCHF) 31.12.2011 31.12.2010
Savings accounts 697 374 650 869
Other liabilities 10 922 045 9 225 396
Total 11 619 419 9 876 265
25 Securitized liabilities (TCHF) 31.12.2011 31.12.2010
Issued bonds 784 028 875 252
of which medium-term notes 124 508 113 434
Other securitized liabilities 0 0
Total 784 028 875 252
26 Provisions (TCHF) 31.12.2011 31.12.2010
Provisions for pensions and similar liabilities 0 0
Tax provisions 80 409 91 503
Other provisions 5 851 7 050
Total 86 260 98 553
Notes on the balance sheet
33

34
Notes on off-balance sheet transactions
27 Contingent liabilities (TCHF) 31.12.2011 31.12.2010
Credit guarantees and similar instruments 542 021 670 031
of which for affiliated companies 448 305 553 128
Performance guarantees and similar instruments 3 413 936 2 768 438
of which for affiliated companies 3 361 708 2 719 892
Irrevocable commitments and other contingent liabilities 451 665
of which for affiliated companies 0 0
Total 3 956 408 3 439 134
28 Commitment credits
Liabilities from deferred payments are reported in the balance sheet. There were no acceptance liabilities or other commitment
credits at 31 December 2011 and 31 December 2010.
29 Fiduciary transactions (TCHF) 31.12.2011 31.12.2010
Fiduciary investments at third-party banks 565 331 585 724
Fiduciary investments at affiliated banks and investment firms 0 0
Fiduciary loans and other financial transactions in a fiduciary capacity 0 0
of which with affiliated companies 0 0
Total 565 331 585 724
Notes on off-balance sheet transactions

30 Open derivative Trading instruments Hedging instruments
financial instruments positive negative Contract positive negative Contract
(TCHF) replacement replacement volume replacement replacement volume
values values values values
Interest rate instruments
Forward contracts incl. FRAs 0 0 0 0 0 0
Swaps 0 0 0 21 062 56 874 2 420 285
Futures 0 0 0 0 0 0
Options (OTC) 0 0 0 0 0 0
Options (exchange-traded)
Forex/precious metals
0 0 0 0 0 0
Forward contracts 1 386 214 1 427 250 75 700 383 0 0 0
Swaps 0 0 0 0 0 0
Futures 0 0 0 0 0 0
Options (OTC) 36 854 36 850 4 067 239 0 0 0
Options (exchange-traded)
Equity securities/indices
0 0 0 0 0 0
Forward contracts 0 0 0 0 0 0
Futures 0 0 0 0 0 0
Options (OTC) 22 22 8 552 0 0 0
Options (exchange-traded)
Credit derivatives
0 0 0 0 0 0
Credit default swaps 5 481 5 481 65 854 0 0 0
Total return swaps 0 0 0 0 0 0
First to default swaps 0 0 0 0 0 0
Other credit derivatives
Other
0 0 0 0 0 0
Forward contracts 0 0 0 0 0 0
Swaps 3 961 3 961 297 162 0 0 0
Futures 0 0 0 0 0 0
Options (OTC) 0 0 0 0 0 0
Options (exchange-traded) 0 0 0 0 0 0
Total 31.12.2011 1 432 532 1 473 564 80 139 190 21 062 56 874 2 420 285
31.12.2010 1 684 360 1 922 354 88 438 512 15 661 32 850 1 893 593
At 31 December 2011 and 31 December 2010 there were no netting contracts.
Notes on off-balance sheet transactions
35

36
Notes to the profit and loss account
31 Offsetting of refinancing expenses with income from trading
The refinancing expenses arising from trading positions are not offset against income from trading activities because this business
activity does not have a significant influence on the bank’s business result.
32 Interest income from fixed-interest securities (TCHF) 2011 2010
Interest income from bonds 56 432 44 758
Interest income from money market paper 10 398 6 387
Total 66 830 51 145
33 Income from trading transactions (TCHF) Reported in the P & L under 2011 2010
Interest income from fixed-interest securities Interest income 1 640 581
Trading in foreign exchange and precious metals Income from financial transactions 59 605 57 654
Securities trading Income from financial transactions 632 5 040
Total 61 877 63 275
34 Personnel expenses (TCHF) 2011 2010
Wages and salaries 83 442 72 370
Social security contributions, pensions and social assistance 14 696 13 854
Notes to the profit and loss account
of which for pensions 13 501 12 925
Other personnel expenses 5 058 5 448
Subtotal 103 196 91 672
Adjustment of liability for Long Term Incentive Scheme -4 500 4 270
Total 98 696 95 942
Emoluments to members of the Executive Board 2 633 6 205
35 Operating expenses (TCHF) 2011 2010
Occupancy expense 9 714 7 367
Expenses for IT, machinery, furniture, vehicles and other equipment 45 052 47 920
Other business expenses 65 405 72 012
Total 120 171 127 299

36 Losses, extraordinary items, provisions
The losses reported under the item other ordinary expenses were incurred mainly in connection with guarantees provided for
affiliated companies (see also Point 43).
No extraordinary items were recorded in the years 2011 and 2010.
The item provisions contains mainly tax provisions and provisions for contingent liabilities and credit risks, as well as provisions
for other business risks (see also Points 13 and 26).
37 Income and expenses broken down 2011 2010
according to office or branch (TCHF) FL Abroad FL Abroad
Interest earned 254 893 10 208 252 n/a
Interest paid -109 893 -32 -80 165 n/a
Current income from securities 686 0 98 686 n/a
Income from commission business and services 193 737 5 188 215 273 n/a
Commission paid -49 064 -3 -53 154 n/a
Income from financial transactions 19 936 57 69 639 n/a
Other ordinary income 31 817 638 37 088 n/a
Operating expenses -199 963 -18 904 223 241 n/a
Other ordinary expenses -19 646 -188 40 399 n/a
The break down is based on the domicile of the booking branch. In 2010, LGT Bank in Liechtenstein had no foreign branches.
Notes to the profit and loss account
37

38
Additional information
38 Securities negotiable on the stock exchange (TCHF) 31.12.2011 31.12.2010
Additional information
Bonds and other fixed-interest bearing securities 3 043 190 2 737 079
of which listed securities 2 312 484 2 041 330
of which listed and treated as current assets 2 312 484 2 041 330
of which listed and treated as non-current assets 0 0
of which unlisted securities 730 706 695 749
Equities and non-fixed-interest securities 2 650 3 597
of which listed securities 1 170 3 580
of which listed and treated as current assets 1 170 3 580
of which listed and treated as non-current assets 0 0
of which unlisted securities 1 480 17
Participations 220 220
of which listed securities 0 0
of which unlisted securities 220 220
Shares in affiliated companies 17 067 17 067
of which listed securities 0 0
of which unlisted securities 17 067 17 067
39 Subordinated liabilities at 31.12.2011 Interest rate % Maturity Currency TCHF
Medium-term note 2.0625 2015 CHF 60
Medium-term note 2.3750 2014 CHF 30
Medium-term note 2.3750 2016 CHF 40
Medium-term note 2.4375 2014 CHF 50
Medium-term note 2.5625 2013 CHF 400
Medium-term note 2.5625 2014 CHF 120
Medium-term note 2.5625 2016 CHF 50
Medium-term note 2.6875 2013 CHF 30
Medium-term note 2.7500 2014 CHF 30
Medium-term note 2.8125 2013 CHF 20
Medium-term note 2.8125 2014 CHF 20
Medium-term note 2.9375 2016 CHF 50
Medium-term note 2.9375 2017 CHF 20
Medium-term note 3.0000 2012 CHF 85
Total 1 005

40 Other assets (TCHF) 31.12.2011 31.12.2010
Positive replacement values of derivatives 1 453 594 1 700 021
Compensation account 29 174 11 384
Physical holdings of precious metals 562 932 335 246
Other assets 4 680 3 356
Total 2 050 380 2 050 007
41 Other liabilities (TCHF) 31.12.2011 31.12.2010
Negative replacement values of derivatives 1 530 438 1 955 204
Coupons 351 4 770
LTIS liability 4 513 9 550
Clearing accounts 106 745 465 213
Total 1 642 047 2 434 737
42 Other ordinary income (TCHF) 2011 2010
Compensation from Group companies 21 822 20 223
Income from real estate 3 906 4 262
Income from the release of provisions 0 368
Remaining other income 6 727 12 235
Total 32 455 37 088
Compensation from the other Group companies forms the largest component of other ordinary income. This item comprises compensation for services, performed
centrally by the bank on behalf of the Group companies. Income from real estate contains the net amounts (rent payments less maintenance costs) from the
rental of bank-owned property to third parties and Group companies.
43 Other ordinary expenses (TCHF) 2011 2010
Losses from receivables and guarantees 18 393 31 456
Transaction losses 781 389
Remaining other expenses 660 8 554
Total 19 834 40 399
See also Point 36
44 Breakdown of client assets (TCHF) 31.12.2011 31.12.2010
Client assets
Client assets in own-managed funds (investment undertakings) 13 098 285 13 897 883
Client assets under management 12 685 399 9 357 698
Other client assets under administration 17 191 601 22 135 071
Total client assets (including double counting) 42 975 285 45 390 652
of which double counting 6 326 527 6 915 445
Additional information
39

40 Additional information
45 Outstanding bonds
Product explanations for table 12 on page 23
The LGT GIM Index Certificates (EUR) are issued in the form of no-par-value promissory notes. These each relate to one of the
LGT Premium Strategy GIM (EUR) indices compiled and administered by LGT Capital Management Ltd. These indices reflect the
value development of a global, diversified portfolio that invests in various asset classes, where exchange rate fluctuations of the
components included in the index are largely hedged against the Euro. Both traditional and alternative asset classes are included.
Both tranches of the Crown Absolute Return (EUR) Index Certificates are no-par-value. These each relate to one of the Crown
Absolute Return (EUR) indices calculated and administered by LGT Capital Partners Ltd. The two indices show the value development
of a global, diversified portfolio that invests in alternative asset classes, where exchange rate fluctuations of the components
included in the index are largely hedged against the Euro.
The Crown Alternative SV (EUR) Index Certificates are no-par-value. They relate to the Crown Alternative SV (EUR) Index calculated
and administered by LGT Capital Partners Ltd. This index shows the value development of a global, diversified portfolio that invests
in various alternative asset classes, where exchange rate fluctuations of the components included in the index are largely hedged
against the Euro.
The LGT GATS Index Certificates are no-par-value and are made out to the bearer. They relate to the LGT Premium Strategy GATS
(EUR) Index compiled and administered by LGT Capital Management Ltd. This index shows the value development of a global,
diversified portfolio that invests in various asset classes, where exchange rate fluctuations of the components included in the
index are largely hedged against the Euro.
The LGT M-Smart Allocator (EUR) Index Certificates are no-par-value. They relate to the LGT M-Smart Allocator (EUR) Index calculated
and administered by LGT Capital Partners Ltd. This index shows the value development of a global, diversified portfolio that
invests in various asset classes, where exchange rate fluctuations of the components included in the index are largely hedged
against the Euro.
The LGT EX EQ EM Leaders (USD) Index Certificates are no-par-value. They relate to the LGT EX Equity Emerging Markets II (USD)
Index calculated and administered by LGT Capital Management Ltd. This index shows the value development of a diversified portfolio
that invests globally.
The LGT EX EQ GEM (USD) Index Certificates are no-par-value. They relate to the LGT EX Equity Emerging Markets III (USD) Index
calculated and administered by LGT Capital Management Ltd. This index shows the value development of a diversified portfolio
that invests globally.
The LGT EX FI EM (USD) Index Certificates are no-par-value. They relate to the LGT EX Fixed Income Emerging Markets II (USD)
Index calculated and administered by LGT Capital Management Ltd. This index shows the value development of a diversified portfolio
that invests globally.
The LGT EX HF GIM (USD) Index Certificates are no-par-value. They relate to the LGT EX Hedge Funds GIM IU (USD) Index calculated
and administered by LGT Capital Partners Ltd. This index shows the value development of a diversified portfolio that invests
globally.
The LGT EX HF GATS (USD) Index Certificates are no-par-value. They relate to the LGT EX Hedge Funds GATS IU (USD) Index
calculated and administered by LGT Capital Partners Ltd. This index shows the value development of a diversified portfolio that
invests globally.

Report of the statutory auditor
Report of the statutory auditor
41

International presence of LGT Group and imprint
Austria Vienna
Bahrain Manama
Germany Frankfurt am Main
Hong Kong Hong Kong
Ireland Dublin
Japan Tokyo
Liechtenstein Vaduz
Singapore Singapore
Spain Madrid
Switzerland Basel
Berne
Chur
Davos
Geneva
Lausanne
Lucerne
Lugano
Pfäffikon
Zurich
United Kingdom London
United States of America New York
Uruguay Montevideo
42 International presence and imprint
Media Relations Christof Buri
Phone +423 235 23 03
christof.buri@lgt.com
Legal Services Jacques Engeli
Dr. Urs Gähwiler
Phone +423 235 28 72
jacques.engeli@lgt.com
Dispatch Iris Dreier
Phone +423 235 20 51
iris.dreier@lgt.com

The illustrations in this report are details from
Salomon Kleiner (Augsburg 1700–1761 Vienna), draughtsman
Jakob Gottfried Theloth (Augsburg 1708–1760 Augsburg), engraver
“East entrance to the gardens in the Rossau between the main and
ancillary buildings”
East entrance to the gardens in the Rossau between the main
and ancillary buildings
Situated in the former Viennese suburb of Rossau, the Liechtenstein
summer palace was one of several palaces and country seats commissioned
by Prince Johann Adam Andreas I von Liechtenstein (1657–1712),
among the greatest architectural patrons of his time. The core of the
design was the new palace with its extensive gardens, for which Johann
Bernhard Fischer von Erlach (1656–1723) provided the first set of
comprehensive plans. The Italian architects Domenico Egidio Rossi
(1659–1715) and Domenico Martinelli (1650–1719) were ultimately
commissioned to build the palace, creating an imposing, stylistically
cohesive palazzo in villa in the Roman style.
© LIECHTENSTEIN. The Princely Collections, Vaduz–Vienna

LGT Bank in Liechtenstein Ltd.
Herrengasse 12
FL-9490 Vaduz
Phone +423 235 11 22
Fax +423 235 15 22
info@lgt.com
LDZ
5H
www.lgt.com
0512
LGT Group is represented in more than 20 locations in Europe, Asia and the Middle East.
A complete address list can be seen at www.lgt.com 50025en