Annual Report 2011 LGT Bank in Liechtenstein Ltd., Vaduz

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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
Page 1: Annual Report 2011 LGT Bank in Liec
Page 4 and 5: 4 Organizational structure as of Ap
Page 6 and 7: 6 Annual report Annual report In 20
Page 8 and 9: 8 Off-balance sheet transactions Of
Page 10 and 11: 10 Appropriation of net profit Appr
Page 14 and 15: 14 Cash and cash equivalents, debt
Page 16 and 17: 16 Value adjustments and provisions
Page 18 and 19: 18 Notes on the balance sheet 1 Ove
Page 20 and 21: 20 Notes on the balance sheet 3 Sec
Page 22 and 23: 8 Statement of changes in non-curre
Page 24 and 25: 24 Notes on the balance sheet 13 Va
Page 26 and 27: 26 Notes on the balance sheet 16 Ma
Page 28 and 29: 28 Notes on the balance sheet 17.1
Page 30 and 31: 30 Notes on the balance sheet 19 Br
Page 32 and 33: 32 Notes on the balance sheet 21 Su
Page 34 and 35: 34 Notes on off-balance sheet trans
Page 36 and 37: 36 Notes to the profit and loss acc
Page 38 and 39: 38 Additional information 38 Securi
Page 40 and 41: 40 Additional information 45 Outsta
Page 42 and 43: International presence of LGT Group
Page 44: LGT Bank in Liechtenstein Ltd. Herr

Annual Report 2011 LGT Bank in Liechtenstein Ltd., Vaduz

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