Annual Report 2011 LGT Bank in Liechtenstein Ltd., Vaduz

More documents

Recommendations

Info

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 development 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
Page 1: Annual Report 2011 LGT Bank in Liec
Page 4 and 5: 4 Organizational structure as of Ap
Page 8 and 9: 8 Off-balance sheet transactions Of
Page 10 and 11: 10 Appropriation of net profit Appr
Page 12 and 13: 12 Appendix to the financial statem
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

Create successful ePaper yourself

Delete template?

Save as template?