Annual Report 2010 LGT Bank in Liechtenstein Ltd., Vaduz

Annual Report 2010
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 2011
Board of Directors H.S.H. Prince Max von und zu Liechtenstein, Chairman
Olivier de Perregaux
Elisabeth Zwicky
Internal Audit Daniel Hauser *
Executive Management Board Thomas Piske, Chairman and Chief Executive Officer
Norbert Biedermann, Vice Chairman
Dr. Florian Dürselen
Paul Göldi
Peter Grüter
Ralph Kotesovec
Stephan Tanner
Statutory Auditor PricewaterhouseCoopers AG, Zürich
Organizational structure as of April 2011
* since 1 January 2011

The business year in comparison
Balance sheet 2010 2009 Change
absolute %
Balance sheet total CHF m 21 656.8 21 966.1 -309.3 -1.4
Shareholders’ funds (after profit distribution) CHF m 1 792.2 1 663.0 129.2 7.8
Client deposit CHF m 10 752.7 13 423.5 -2 670.8 -19.9
Due from clients CHF m 7 715.7 8 376.7 -661.0 -7.9
Profit and loss account
Net interest income CHF m 128.1 207.9 -79.8 -38.4
Net commission and fee income CHF m 162.1 173.0 -10.9 -6.3
Income from financial transactions CHF m 69.6 104.2 -34.6 -33.2
Gross operating income CHF m 495.6 509.5 -13.9 -2.7
Personnel expenses CHF m 95.9 103.3 -7.4 -7.1
Operating expenses CHF m 127.3 137.2 -9.9 -7.2
Result on ordinary business activity CHF m 228.0 235.3 -7.3 -3.1
Taxes CHF m 0.7 49.4 -48.7 -98.5
Profit for the year CHF m 257.3 186.0 71.3 38.4
Client assets under administration
Client assets under administration CHF m 45 390.7 47 563.0 -2 172.3 -4.6
Personnel (full-time equivalents)
Staff at year-end 466 469 -3 -0.6
The business year in comparison
5

6
Annual report
Annual report
In 2010, the financial markets were significantly affected
by the consequences of the financial and economic
crisis. Although the economy has recovered more or
less across the globe, the economic challenges faced
by individual countries and regions still vary widely.
In this challenging environment, LGT Bank in Liechtenstein
Ltd. achieved a good business result.
In the 2010 business year, gross operating income
decreased slightly by CHF 13.9 million, or 3 percent,
to CHF 495.6 million. Earnings were held back by
low interest rates and the strength of the Swiss Franc
against the Euro and US Dollar. Offsetting these developments
was a general pick-up in client stock market
activity over the course of the second six months.
Income from commission business and services fell by
CHF 10.9 million (6 percent) to CHF 162.1 million,
while net interest income declined by 38 percent to
CHF 128.1 million. In the previous year, income from
financial transactions had increased sharply thanks to
profits realized on own securities. In the year under
report, the bank was no longer able to benefit from
this special effect. Consequently – and in spite of significantly
higher earnings from trading activities – income
from financial transactions was down by CHF 34.6 million,
or 33 percent. In 2010, operating expenses decreased
by CHF 17.3 million, or 7 percent. The decrease
encompassed a parallel fall in personnel expenses and
business expenses. The cost / income ratio improved
marginally from 47 to 45 percent.
Profit for the year was increased substantially by CHF
71.3 million, or 38 percent, to CHF 257.3 million. This
improved result was attributable, among other factors,
to various special effects. On the one hand, in 2010
the bank was able to release tax provisions that had
been allocated in 2009 in connection with tax changes
in Liechtenstein. On the other, the bank booked extraordinary
revenues in 2010 of CHF 98.7 million from its
shares in affiliated companies. Moreover, it also released
provisions of CHF 30 million for general banking risks.
The capital resources of LGT Bank in Liechtenstein Ltd.
remained at a very sound level. At 21.0 percent at the
end of 2010, the bank’s equity capital exceeded the
statutory requirement of 8 percent of risk-weighted
exposure by 163 percent.
On account of currency influences, client assets under
administration declined by CHF 2.2 billion, or 5 percent,
to CHF 45.4 billion. Asset outflows were further reduced
while new money inflows rose, resulting on the whole
in a sharply improved net new money balance.
The shares of LGT Bank in Liechtenstein Ltd. are wholly
owned by LGT Group Foundation. No own shares
were acquired or taken as a pledge, either directly or
indirectly. LGT Bank in Liechtenstein Ltd. is a part of
LGT Group, a globally active wealth and asset management
group, which takes an integrated approach to
the management and development of the individual
Group companies. LGT Group's annual report provides
information about the financial capacity, expertise and
development of LGT Group.
Thanks to the continuing economic recovery in many
areas, the operating conditions for banking business
have gradually improved. Liechtenstein’s economic
and political stability, its strong currency and the expertise
built up over many years in private banking all
strengthen the attractiveness of its financial center –
especially in view of the weakness of the Euro and
the US Dollar. As a family company with a long-term
perspective and a strong capital base, LGT Bank in
Liechtenstein Ltd. is well positioned to meet and
master future challenges in this environment. The
international structure of the company, its consistent,
long-term strategy and its dedicated employees form
key components of its success by guaranteeing safety,
performance and quality.
H.S.H. Prince Max von und zu Liechtenstein
Chairman of the Board of Directors

Balance sheet
Assets (TCHF) Appendix 31.12.2010 31.12.2009 Change
absolute %
Cash and cash equivalents 237 662 491 882 -254 220 -51.7
Debt instruments of public authorities
and bills which are eligible for refinancing
at central banks 22 2 131 207 185 006 1 946 201 n /a
Due from banks 16 6 556 359 8 987 669 -2 431 310 -27.1
Due from clients 1, 16 7 715 681 8 376 722 -661 041 -7.9
of which mortgage loans 1, 16 1 983 732 1 808 169 175 563 9.7
Bonds and other fixed-interest
bearing securities 2, 3, 4, 23, 38 2 737 079 2 148 275 588 804 27.4
Equities and other non-fixedinterest
securities 2, 3, 4, 38 3 597 16 333 -12 736 -78.0
Participations 5, 7, 8, 38 220 220 0 0.0
Shares in affiliated companies 5, 6, 8, 21, 38 90 682 491 050 -400 368 -81.5
Tangible assets 8 92 992 97 437 -4 445 -4.6
Other assets 40 2 050 007 1 123 261 926 746 82.5
Accrued income and prepaid expenses 41 284 48 256 -6 972 -14.4
Total assets 21 656 770 21 966 111 -309 341 -1.4
Liabilities (TCHF)
Due to banks 16 5 768 799 5 014 150 754 649 15.1
Due to clients 16, 24 9 876 265 12 165 402 -2 289 137 -18.8
Securitized liabilities 12, 25 875 252 1 254 909 -379 657 -30.3
Other liabilities 41 2 434 737 907 428 1 527 309 168.3
Accrued expenses and deferred income 37 188 47 875 -10 687 -22.3
Provisions 13, 26, 36 98 553 116 237 -17 684 -15.2
Subordinated liabilities 39 1 145 3 170 -2 025 -63.9
Provisions for general banking risks 13 644 500 674 500 -30 000 -4.4
Share capital 14 291 201 291 201 0 0.0
Revenue reserves 15 1 371 500 1 304 500 67 000 5.1
Profit carried forward 347 784 -437 -55.7
Profit for the year 257 283 185 955 71 328 38.4
Total liabilities 21 656 770 21 966 111 -309 341 -1.4
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 31.12.2010 31.12.2009 Change
Off-balance sheet transactions
absolute %
Contingent liabilities 1, 27 3 439 134 3 492 471 -53 337 -1.5
of which liabilities from guarantees and indemnity
agreements as well as from the furnishing of collateral 1, 27 3 439 134 3 492 471 -53 337 -1.5
Credit risks 96 711 28 311 68 400 241.6
of which irrevocable commitments 1 90 533 20 856 69 677 334.1
of which commitments to subscribe additional
contributions for shares or other equity securities 1 6 178 7 455 -1 277 -17.1
Derivative financial instruments
Positive replacement values 30, 40 1 700 021 827 618 872 403 105.4
Negative replacement values 30, 41 1 955 204 824 474 1 130 730 137.1
Contract volume 30 90 332 105 72 493 873 17 838 232 24.6
Fiduciary transactions 29 585 724 1 100 427 -514 703 -46.8
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 2010 2009 Change
absolute %
Interest earned 32, 33 208 252 342 837 -134 585 -39.3
Interest paid -80 165 -134 978 54 813 -40.6
Net interest income 128 087 207 859 -79 772 -38.4
Equities and other non-fixed-interest securities 33 0 0 0 0.0
Participations 657 800 -143 -17.9
Shares in affiliated companies 98 029 29 98 000 n /a
Current income from securities 98 686 829 97 857 n /a
Commission income from lending business 6 014 4 874 1 140 23.4
Commission income from securities and investment business 198 769 205 217 -6 448 -3.1
Commission from other services 10 490 10 505 -15 -0.1
Income from commission business and services 215 273 220 596 -5 323 -2.4
Commission paid -53 154 -47 584 -5 570 11.7
Net commission and fee income 162 119 173 012 -10 893 -6.3
Income from financial transactions 33 69 639 104 219 -34 580 -33.2
of which from trading 33 62 694 27 401 35 293 128.8
Other ordinary income 42 37 088 23 591 13 497 57.2
Gross operating income 495 619 509 510 -13 891 -2.7
Personnel expenses 34 -95 942 -103 320 7 378 -7.1
Operating expenses 35 -127 299 -137 186 9 887 -7.2
Business expenses -223 241 -240 506 17 265 -7.2
Gross profit 272 378 269 004 3 374 1.3
Amortization of intangible assets and depreciation of
tangible assets -5 697 -5 183 -514 9.9
Other ordinary expenses 36, 43 -40 399 -32 261 -8 138 25.2
Value adjustments on receivables and funds allocated
to provisions for contingent liabilities and credit risks -98 -8 218 8 120 -98.8
Income from the release of value adjustments on
receivables and from provisions for credit risks 1 823 11 994 -10 171 -84.8
Amortization of participations, shares in affiliated
companies and securities held as non-current assets 0 0 0 0.0
Result on ordinary business activity 228 007 235 336 -7 329 -3.1
Income tax 2 488 -17 602 20 090 -114.1
Other taxes -3 212 -31 779 28 567 -89.9
Income from the release of provisions for
general banking risks 30 000 0 30 000 n /a
Profit for the year 257 283 185 955 71 328 38.4
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 2010 2009
to the general meeting of shareholders (CHF)
Profit for the year 257 282 828.21 185 955 236.46
Profit carried forward 347 124.41 784 215.95
Accumulated profit for the year 257 629 952.62 186 739 452.41
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 129 000 000.00 67 000 000.00
Dividend on company capital 128 128 352.00 119 392 328.00
Other profit distribution 0.00 0.00
Profit carried forward 501 600.62 347 124.41
Important This document is a non-binding English translation of the authoritative German annual report.

Flow of funds statement
Flow of funds statement (TCHF) 2010 2009
Flow of funds from operating result (internal financing)
Source Application Source Application
of funds of funds of funds of funds
Profit for the year 257 283 185 955
Depreciation of non-current assets 5 697 5 183
Value adjustments and provisions 47 684 20 956
Accrued income and prepaid expenses 6 972 47 248
Accrued expenses and deferred income 10 687 25 388
Other items 0 0
Previous-year dividend 119 392 112 112
Balance 92 189 121 842
Flow of funds from changes to non-current assets
Participations 0 0 0 78
Shares in affiliated companies 400 368 0 0 39 834
Securities and precious metals as non-current assets 1 827 5 000
Properties 0 1 238 0 16 405
Other tangible assets 0 14 17 0
Balance
Flow of funds from banking operations
Medium and long-term business (> 1 year)
400 943 51 300
Due to banks 51 336 22 248
Due to clients 2 387 9 647
Bonds 296 819 102 455
Medium-term notes 17 648 77 646
Other liabilities 4 599 22 787
Due from banks 50 395 64 810
Due from clients (excl. mortgage loans) 59 659 33 650
Mortgage loans 62 554 359 776
Other receivables
Short-term business (≤ 1 year)
400 159 480 750
Due to banks 805 985 1 210 714
Due to clients 2 291 524 17 900
Other liabilities 1 455 495 1 125 760
Due from banks 2 481 705 2 133 322
Due from clients 658 146 86 245
Trading positions in securities and precious metals
Securities and precious metals held as current assets
77 167 205 664
(excl. trading positions) 2 495 025 1 635 791
Other receivables
Liquid funds
1 278 809 1 779 679
Cash and cash equivalents -254 220 -360
Balance 493 132 70 542
Total 493 132 493 132 121 842 121 842
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. The bank also has representative offices in
Bahrain, Chur, Davos, Geneva, Hong Kong, Lugano
and Montevideo.
At 31 December 2010, LGT Bank in Liechtenstein
employed 466 persons on a full-time equivalent basis
(469 in the previous year). In 2010, the average headcount
amounted to 465 persons (474).
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 business.
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 only to a modest extent. 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.
H.S.H. Prince Max von und zu Liechtenstein 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.
Conversion rates
31.12.2010 31.12.2009
1 EUR 1.2564 1.4832
1 USD 0.9367 1.0296
1 GBP 1.4629 1.6712
1 SGD 0.7310 0.7346
1 HKD 0.1205 0.1328
100 JPY 1.1544 1.1139
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.
Appendix to the financial statement
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.
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.
Appendix to the financial statement
15

16
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.
Appendix to the financial statement
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.
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. Taxes are calculated
on the basis of the estimated rates for actual taxation.
Provisions for general banking risks
Provisions for general banking risks are formed to hedge
against latent risks in the bank’s operating activities.

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) 13 312 4 425 514 1 293 123 5 731 949
Mortgage loans
Residential properties 1 488 225 0 0 1 488 225
Office and business premises 198 062 0 0 198 062
Commercial and industrial premises 156 189 0 0 156 189
Other 141 256 0 0 141 256
Total 31.12.2010 1 997 044 4 425 514 1 293 123 7 715 681
Off-balance sheet transactions
31.12.2009 1 865 936 4 535 543 1 975 243 8 376 722
Contingent liabilities 905 161 790 3 276 439 3 439 134
Irrevocable commitments 86 725 3 538 270 90 533
Commitments to subscribe additional contri-
butions for shares or other equity securities 0 0 6 178 6 178
Total 31.12.2010 87 630 165 328 3 282 887 3 535 845
31.12.2009 21 388 203 653 3 295 741 3 520 782
Impaired due amounts (TCHF) Gross amount Estimated realization Net amount Specific value
due value of collateral due adjustments
31.12.2010 12 739 5 422 7 317 7 317
31.12.2009 17 768 7 015 10 753 10 753

2 Trading positions (TCHF) Book value Cost Market value
Trading positions comprising
31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009
securities and precious metals
Debt instruments
listed (traded on a
41 511 9 180 41 712 9 087 41 511 9 180
recognized exchange) 41 511 9 180 41 712 9 087 41 511 9 180
unlisted 0 0 0 0 0 0
of which own bonds and
medium-term notes 0 0 0 0 0 0
Equity paper 3 597 6 683 2 941 5 958 3 597 6 683
of which own equity paper 0 0 0 0 0 0
Precious metals 334 342 286 420 334 342 286 420 334 342 286 420
Total 379 450 302 283 378 995 301 465 379 450 302 283
of which eligible as security
for central bank borrowings 0 800 0 800 0 800
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 31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009
(excl. trading positions) (TCHF)
Debt instruments 4 826 775 2 322 101 4 835 612 2 329 198 4 832 707 2 331 176
of which own bonds and
medium-term notes 0 0 0 0 0 0
Equity paper 0 9 650 0 10 296 0 9 650
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 4 826 775 2 331 751 4 835 612 2 339 494 4 832 707 2 340 826
of which eligible as security
for central bank borrowings 3 279 053 925 509 3 281 809 928 784 3 281 815 930 558
4 Securities and precious metals Book value Cost Market value
held as non-current assets
(TCHF)
31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009
Debt instruments 0 2 000 0 2 000 0 2 050
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 2 000 0 2 000 0 2 050
of cost or market 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 905 732 1 791 1 791 905 732
Total 905 2 732 1 791 3 791 905 2 782
of which eligible as security
for central bank borrowings 0 2 000 0 2 000 0 2 050

5 Participations and shares in affiliated companies (TCHF) 31.12.2010 31.12.2009
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 17 067 417 068
Subordinated claims against affiliated companies 73 615 73 982
Total 90 682 491 050
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 16 154
LGT Bank (Ireland) Ltd., Dublin bank USD 50 000 000 75 25 1 832
Other
LGT Investments Ltd.,
Grand Cayman investment company USD 50 210 100 100 23 978
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 2010, the shares in banks and investment firms shown under the shares in affiliated companies item amounted to TCHF 57 068 (17 068 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
31.12.2009
Total participations (minority holdings) 220 0 220
Total shares in affiliated companies 517 133 -26 083 491 050
Total securities and precious metals held as non-current assets 3 791 -1 059 2 732
Total intangible assets
Properties
0 0 0
Bank premises 186 666 -94 756 91 910
Other properties 11 516 -5 989 5 527
Other tangible assets 219 -219 0
Total tangible assets 198 401 -100 964 97 437
Fire insurance value of properties 184 587
Fire insurance value of other tangible assets 20 222
9 Intangible assets
At 31 December 2010 and 31 December 2009, 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
31.12.2010 31.12.2009
Book value of pledged or assigned (assigned as collateral) assets 549 633 478 900
Actual liabilities 252 997 298 702
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 275 882 921 545
of which capable of being resold or pledged without restrictions 175 719 371 573
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 733 588 5 180 165
of which resold or further pledged securities 165 752 424 680

Investments Disinvestments Reclassifications Write-ups Depreciation Book value
31.12.2010
0 0 0 0 0 220
0 -400 368 0 0 0 90 682
0 -1 827 0 0 0 905
0 0 0 0 0 0
1 238 0 0 0 -5 231 87 917
0 0 0 0 -466 5 061
14 0 0 0 0 14
1 252 0 0 0 -5 697 92 992
192 582
20 203
11 Liabilities in respect of own pension funds (TCHF) 31.12.2010 31.12.2009
Total liabilities 12 383 9 449
12 Outstanding bonds Interest Year of issue Earliest Currency Par value
at 31.12.2010 rate % redemption date TCHF
LGT GIM Index Certificates 0.0 up to 2004 28.2.2012 EUR 78 020
LGT GIM Index Certificates II 0.0 up to 2006 30.6.2014 EUR 227 270
LGT GIM Index Certificates II/2 0.0 2006 31.3.2016 EUR 61 964
LGT GIM Index Certificates III 0.0 up to 2008 31.7.2016 EUR 153 717
LGT GIM Index Certificates IV 0.0 ongoing 31.3.2018 EUR 988
Crown Absolute Return Index Certificates 0.0 ongoing 30.11.2013 EUR 5 741
Crown Absolute Return Index Certificates II 0.0 ongoing 31.7.2014 EUR 1 742
Crown Alternative SV Index Certificates 0.0 ongoing 30.6.2017 EUR 38 695
Crown Alternative Bond Index Certificates 0.0 ongoing 30.11.2017 EUR 143
LGT GATS Index Certificates 0.0 ongoing 30.9.2014 EUR 70 546
LGT M-Smart Allocator Index Certificates 0.0 ongoing 31.8.2017 EUR 45 699
LGT EX EQ EM Leaders Note 0.0 ongoing 31.12.2027 USD 6 980
LGT EX EQ GEM Index Note 0.0 ongoing 31.12.2027 USD 6 602
LGT EX FI EM Index Note 0.0 ongoing 31.12.2027 USD 14 318
LGT EX HF GIM Index Note 0.0 ongoing 31.12.2027 USD 28 947
LGT EX HF GATS Index Note 0.0 ongoing 31.12.2027 USD 20 445
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) 31.12.2009
Value adjustments for default risks
Specific value adjustments 10 753 -1 858
Flat-rate specific value adjustments
(incl. such adjustments for country risks) 0 0
Portfolio value adjustments 7 281 0
Provisions for contingent liabilities and credit risks 1 148 0
Provisions for other business risks 2 631 -4 568
Provisions for taxes and deferred taxes 111 161 -20 382
Other provisions 1 297 -31
Total value adjustments and provisions 134 271 -26 839
less:
Value adjustments -18 034 –
Total provisions as per the balance sheet 116 237 –
Provisions for general banking risks 674 500 –
See also Point 36
14 Share capital 31.12.2010 31.12.2009
(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 31.12.2010 31.12.2009
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 31.12.2010
-876 98 -800 7 317
0 0 0 0
-596 0 -520 6 165
-176 0 -502 470
-218 7 837 -368 5 314
0 21 677 -20 953 91 503
0 0 0 1 266
-1 866 29 612 -23 143 112 035
– – – -13 482
– – – 98 553
– 0 -30 000 644 500
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) 2 564 831
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 1 086 000 Reserves for own shares 0
Provisions for general banking risks 674 500 Statutory reserves 0
Accumulated profit for the year 186 739 Other reserves 1 153 000
Total equity capital at the start of the Provisions for general banking risks 644 500
business year (prior to profit distribution) 2 456 940 Accumulated profit for the year 257 630
+/- capital increase/capital reduction 0
+ premium 0
+ Release of provisions for
general banking risks -30 000
- dividend from the previous year’s profit -119 392
+ annual profit for the business year 257 283
Total equity capital at the end of the
business year (prior to profit distribution) 2 564 831
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 237 662 –
Debt instruments of public authorities and bills which
are eligible for refinancing at central banks 0 0
Due from banks 2 294 957 0
Due from clients 23 824 1 463 411
of which mortgage loans 2 650 233 001
Trading positions comprising securities and precious metals 379 450 –
Securities and precious metals held as current assets
(excl. trading positions) 2 695 568 –
Securities and precious metals held as non-current assets 905 0
Other assets 44 172 0
Total assets 31.12.2010 5 676 538 1 463 411
Liabilities and provisions
31.12.2009 4 646 851 2 240 623
Due to banks 4 019 830 17 309
Due to clients 3 147 462 5 710 237
Savings accounts 0 650 869
Other liabilities to clients 3 147 462 5 059 368
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) 98 553 0
Subordinated liabilities 0 0
Other liabilities 516 720 0
Total liabilities and provisions 31.12.2010 7 782 565 5 727 546
31.12.2009 7 629 210 6 317 824
Of the securities reported in the balance sheet under bonds and other fixed-interest bearing securities, instruments amounting to TCHF 1 051 820
(1 072 838 in the previous year) will become due in 2011. Issued bonds due in 2011 amount to TCHF 45 399 (110 589 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
– – – – – 237 662
1 729 620 401 587 0 0 – 2 131 207
3 099 548 838 533 273 161 50 160 – 6 556 359
4 245 836 783 575 1 018 586 180 449 – 7 715 681
599 012 225 736 751 232 172 101 – 1 983 732
– – – – – 379 450
– – – – – 2 695 568
0 0 0 0 – 905
1 361 813 323 540 22 454 94 499 93 460 1 939 938
10 436 817 2 347 235 1 314 201 325 108 93 460 21 656 770
11 630 280 1 358 484 1 334 131 657 824 97 918 21 966 111
1 171 188 559 595 877 0 – 5 768 799
758 147 258 032 2 387 0 – 9 876 265
0 0 0 0 – 650 869
758 147 258 032 2 387 0 – 9 225 396
20 722 24 677 508 360 321 493 – 875 252
20 722 24 677 508 360 321 493 – 875 252
20 722 24 677 63 076 4 959 – 113 434
0 0 0 0 – 0
0 0 0 0 – 98 553
90 50 845 160 – 1 145
1 420 354 502 686 26 835 5 330 – 2 471 925
3 370 501 1 345 040 539 304 326 983 0 19 091 939
3 241 835 1 095 198 761 637 463 467 0 19 509 171
Notes on the balance sheet
27

28 Notes on the balance sheet
17.1 Claims on affiliated companies (TCHF) 31.12.2010 31.12.2009
Due from banks 1 408 894 1 032 908
Due from clients 3 862 488 4 349 494
of which due from qualified participants (LGT Group Foundation) 1 022 000 1 017 500
Bonds and other fixed-interest bearing securities 36 711 8 270
Total 5 308 093 5 390 672
17.2 Liabilities to affiliated companies (TCHF) 31.12.2010 31.12.2009
Due to banks 3 916 569 3 609 002
Due to clients 162 712 771 040
of which due to qualified participants (LGT Group Foundation) 672 792
Securitized liabilities 0 0
Subordinated liabilities 0 0
Total 4 079 281 4 380 042
17.3 Loans to governing bodies (TCHF) 31.12.2010 31.12.2009
Members of the Board of Directors 4 536 2 886
Members of the Executive Board 5 266 7 230
Total 9 802 10 116
17.4 Transactions with closely associated persons
On behalf of the bank, a company belonging to LGT Group took over a payment of TCHF 32 701. Otherwise 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) 31.12.2010 31.12.2009
Domestic Abroad Domestic Abroad
Assets
Cash and cash equivalents
Debt instruments of public authorities and bills
237 662 0 491 882 0
which are eligible for refinancing at central banks 2 131 207 0 0 185 006
Due from banks 2 464 545 4 091 814 1 667 168 7 320 501
Due from clients (excl. mortgage loans) 1 669 071 4 062 878 1 759 495 4 809 058
Mortgage loans 1 942 277 41 455 1 780 805 27 364
Bonds and other fixed-interest bearing securities 114 2 736 965 31 686 2 116 589
Equities and other non-fixed-interest securities 3 585 12 15 050 1 283
Participations 66 154 66 154
Shares in affiliated companies 70 000 20 682 70 000 421 050
Intangible assets 0 0 0 0
Tangible assets 92 992 0 97 437 0
Other assets 1 489 725 560 282 685 380 437 881
Accrued income and prepaid expenses 12 683 28 601 12 022 36 234
Total assets 10 113 927 11 542 843 6 610 991 15 355 120
Liabilities
Due to banks 3 899 567 1 869 232 3 072 147 1 942 003
Due to clients (excl. savings accounts) 5 274 121 3 951 275 6 262 128 5 299 828
Savings accounts 547 037 103 832 495 894 107 552
Securitized liabilities 875 252 0 1 254 909 0
Other liabilities 1 713 520 721 217 596 481 310 947
Accrued expenses and deferred income 34 158 3 030 44 820 3 055
Provisions 98 553 0 116 237 0
Subordinated liabilities 1 145 0 3 170 0
Provisions for general banking risks 644 500 0 674 500 0
Share capital 291 201 0 291 201 0
Legal reserves 218 500 0 218 500 0
Other reserves 1 153 000 0 1 086 000 0
Profit carried forward 347 0 784 0
Profit for the year 257 283 0 185 955 0
Total liabilities 15 008 184 6 648 586 14 302 726 7 663 385
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 31.12.2010
country/country group TCHF %
Country
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
Breakdown of assets according to 31.12.2009
country/country group
Country
TCHF %
Liechtenstein 3 346 061 15.2
Switzerland 3 264 930 14.9
Europe excl. FL/CH 8 720 615 39.6
North America 777 703 3.5
Caribbean 5 002 503 22.8
Latin America 14 922 0.1
Africa 34 647 0.2
Asia 616 849 2.8
Oceania 187 881 0.9
Total assets 21 966 111 100.0
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
226 485 8 914 1 065 1 198 237 662
2 131 207 0 0 0 2 131 207
2 567 127 1 567 435 1 364 515 1 057 282 6 556 359
3 188 306 1 144 182 994 067 405 394 5 731 949
1 945 544 11 722 4 545 21 921 1 983 732
1 198 278 426 720 187 452 924 629 2 737 079
2 948 17 632 0 3 597
220 0 0 0 220
87 068 0 0 3 614 90 682
0 0 0 0 0
92 992 0 0 0 92 992
1 712 807 0 206 336 994 2 050 007
18 077 5 017 4 334 13 856 41 284
13 171 059 3 164 007 2 556 816 2 764 888 21 656 770
22 855 985 14 730 145 34 645 396 14 735 236 86 966 762
36 027 044 17 894 152 37 202 212 17 500 124 108 623 532
1 446 944 1 670 435 1 759 901 891 519 5 768 799
2 474 520 2 462 239 2 987 612 1 301 025 9 225 396
642 410 5 493 2 726 240 650 869
113 434 684 527 77 291 0 875 252
2 423 716 10 343 322 356 2 434 737
34 241 1 641 698 608 37 188
96 037 642 1 874 0 98 553
1 145 0 0 0 1 145
644 500 0 0 0 644 500
291 201 0 0 0 291 201
218 500 0 0 0 218 500
1 153 000 0 0 0 1 153 000
347 0 0 0 347
257 283 0 0 0 257 283
9 797 278 4 835 320 4 830 424 2 193 748 21 656 770
26 470 213 13 061 879 32 374 343 15 298 281 87 204 716
36 267 491 17 897 199 37 204 767 17 492 029 108 861 486
-240 447 -3 047 -2 555 8 095 -237 954
Notes on the balance sheet
31

32 Notes on the balance sheet
21 Subordinated assets (TCHF) 31.12.2010 31.12.2009
Balance sheet items
Bonds and other fixed-interest bearing securities 15 147 58 729
Shares in affiliated companies 73 615 73 982
Total 88 762 132 711
22 Debt instruments of public authorities and bills which are eligible 31.12.2010 31.12.2009
for refinancing at central banks (TCHF)
Debt instruments of public authorities 2 131 207 185 006
Bills 0 0
Total 2 131 207 185 006
23 Bonds and other fixed-interest bearing securities (TCHF) 31.12.2010 31.12.2009
Money market paper 384 844 454 349
of which from public sector issuers 0 0
of which from other issuers 384 844 454 349
Bonds 2 352 235 1 693 926
of which from public sector issuers 18 076 77 506
of which from other issuers 2 334 159 1 616 420
Total 2 737 079 2 148 275

24 Due to clients (TCHF) 31.12.2010 31.12.2009
Savings accounts 650 869 603 446
Other liabilities 9 225 396 11 561 956
Total 9 876 265 12 165 402
25 Securitized liabilities (TCHF) 31.12.2010 31.12.2009
Issued bonds 875 252 1 254 909
of which medium-term notes 113 434 186 622
Other securitized liabilities 0 0
Total 875 252 1 254 909
26 Provisions (TCHF) 31.12.2010 31.12.2009
Provisions for pensions and similar liabilities 0 0
Tax provisions 91 503 111 161
Other provisions 7 050 5 076
Total 98 553 116 237
Notes on the balance sheet
33

34
Notes on off-balance sheet transactions
27 Contingent liabilities (TCHF) 31.12.2010 31.12.2009
Credit guarantees and similar instruments 670 031 76 517
of which for affiliated companies 553 128 0
Performance guarantees and similar instruments 2 768 438 3 415 302
of which for affiliated companies 2 719 892 3 269 741
Irrevocable commitments and other contingent liabilities 665 652
of which for affiliated companies 0 0
Total 3 439 134 3 492 471
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 2010 and 31 December 2009.
29 Fiduciary transactions (TCHF) 31.12.2010 31.12.2009
Fiduciary investments at third-party banks 585 724 1 055 910
Fiduciary investments at affiliated banks and investment firms 0 39 123
Fiduciary loans and other financial transactions in a fiduciary capacity 0 5 394
of which with affiliated companies 0 0
Total 585 724 1 100 427
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 15 661 32 850 1 893 593
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 1 675 227 1 913 181 86 508 076 0 0 0
Swaps 0 0 0 0 0 0
Futures 0 0 0 0 0 0
Options (OTC) 9 071 9 111 1 928 437 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) 62 62 1 999 0 0 0
Options (exchange-traded)
Other
0 0 0 0 0 0
Forward contracts 0 0 0 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 31.12.2010 1 684 360 1 922 354 88 438 512 15 661 32 850 1 893 593
31.12.2009 811 912 796 609 71 170 218 15 706 27 865 1 323 655
At 31 December 2010 and 31 December 2009 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) 2010 2009
Interest income from bonds 44 758 54 275
Interest income from money market paper 6 387 50 680
Total 51 145 104 955
33 Income from trading transactions (TCHF) Reported in the P & L under 2010 2009
Interest income from fixed-interest securities Interest income 581 1 467
Trading in foreign exchange and precious metals Income from financial transactions 57 654 39 353
Securities trading Income from financial transactions 5 040 -11 952
Total 63 275 28 868
34 Personnel expenses (TCHF) 2010 2009
Wages and salaries 72 370 76 764
Social security contributions, pensions and social assistance 13 854 14 597
Notes to the profit and loss account
of which for pensions 12 925 13 644
Other personnel expenses 5 448 6 299
Subtotal 91 672 97 660
Adjustment of liability for Long Term Incentive Scheme 4 270 5 660
Total 95 942 103 320
Emoluments to members of the Executive Board 6 205 7 872
35 Operating expenses (TCHF) 2010 2009
Occupancy expense 7 367 8 203
Expenses for IT, machinery, furniture, vehicles and other equipment 47 920 46 473
Other business expenses 72 012 82 510
Total 127 299 137 186

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 2010 and 2009.
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 according to office or branch
Because a representative office is not deemed to be a permanent establishment and therefore counts as a component of domestic
income and expenses, no non-domestic earnings or expenses were recorded.
Notes to the profit and loss account
37

38
Additional information
38 Securities negotiable on the stock exchange (TCHF) 31.12.2010 31.12.2009
Additional information
Bonds and other fixed-interest bearing securities 4 868 286 2 333 281
of which listed securities 2 041 330 1 272 433
of which listed and treated as current assets 2 041 330 1 270 433
of which listed and treated as non-current assets 0 2 000
of which unlisted securities 2 826 956 1 060 848
Equities and non-fixed-interest securities 3 597 16 333
of which listed securities 3 580 5 371
of which listed and treated as current assets 3 580 5 371
of which listed and treated as non-current assets 0 0
of which unlisted securities 17 10 962
Participations 220 220
of which listed securities 0 0
of which unlisted securities 220 220
Shares in affiliated companies 90 682 491 050
of which listed securities 0 0
of which unlisted securities 90 682 491 050
39 Subordinated liabilities at 31.12.2010 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 2011 CHF 30
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
Medium-term note 3.3125 2011 CHF 20
Medium-term note 3.6000 2011 CHF 90
Total 1 145

40 Other assets (TCHF) 31.12.2010 31.12.2009
Positive replacement values of derivatives 1 700 021 827 618
Compensation account 11 384 6 907
Physical holdings of precious metals 335 246 287 152
Other assets 3 356 1 584
Total 2 050 007 1 123 261
41 Other liabilities (TCHF) 31.12.2010 31.12.2009
Negative replacement values of derivatives 1 955 204 824 474
Coupons 4 770 247
LTIS liability 9 550 6 414
Clearing accounts 465 213 76 293
Total 2 434 737 907 428
42 Other ordinary income (TCHF) 2010 2009
Compensation from Group companies 20 223 19 492
Income from real estate 4 262 3 364
Income from the release of provisions 368 0
Remaining other income 12 235 735
Total 37 088 23 591
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.
In the 2010 business year, income from trading activity of TCHF 11 392 from another accounting period is included under “Remaining other income”.
43 Other ordinary expenses (TCHF) 2010 2009
Losses from receivables and guarantees 31 456 27 730
Transaction losses 389 1 666
Remaining other expenses 8 554 2 865
Total 40 399 32 261
See also Point 36
44 Breakdown of client assets (TCHF) 31.12.2010 31.12.2009
Client assets
Client assets in own-managed funds (investment undertakings) 13 897 883 14 026 688
Client assets under management 9 357 698 10 101 123
Other client assets under administration 22 135 071 23 435 179
Total client assets (including double counting) 45 390 652 47 562 990
of which double counting 6 915 445 7 923 338
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 Crown Alternative Bond (EUR) Index Certificates are no-par-value. They relate to the Crown Alternative Bond (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 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 Berlin
Cologne
Frankfurt am Main
Hamburg
Mannheim
Munich
Stuttgart
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 lic.iur. Elisabeth Zwicky
Dr. Urs Gähwiler
Phone +423 235 13 05
elisabeth.zwicky@lgt.com
Dispatch Iris Dreier
Phone +423 235 20 51
iris.dreier@lgt.com

The illustrations in this report are details from
Jakob Walter, “Plate XII, title page of volume 12
of the Codex Liechtenstein”, 1798
Plate XII, title page of volume 12 of the Codex Liechtenstein
The fourteen-volume “Hortus Botanicus” is considered to be one of
the most important historical plant catalogs. Botanists spent almost
three decades collecting the plants of Lower Austria and Moravia, the
cultivated agricultural and ornamental plants, as well as greenhouse
flowers, and recording them in 2748 lifelike illustrations. Norbert
Boccius (1729–1806), a surgeon in Feldsberg, commenced the Codex
Liechtenstein (also known as the Hortus Botanicus) together with
other plant artists. Over half of the watercolors were painted by the
brothers Joseph (1756–1831), Franz (1758–1840) and Ferdinand Bauer
(1760–1826), who were among the most important natural history
artists of the time. Jacob Walter signs the plates for the first time
from volume 10. When Norbert Boccius gave the first twelve volumes
to Prince Alois I. in 1799 for his support of a hospital, it became the
Codex Liechtenstein.
© Collections of the Prince of Liechtenstein, Vaduz – Vienna
LIECHTENSTEIN MUSEUM, Vienna. www.liechtensteinmuseum.at

LGT Bank in Liechtenstein Ltd.
Herrengasse 12
FL-9490 Vaduz
Phone +423 235 11 22
Fax +423 235 15 22
info@lgt.com
BVD
5H
www.lgt.com
0511
LGT Group is represented in 29 locations in Europe, Asia and the Middle East.
A complete address list can be seen at www.lgt.com 50025en