Annual Report 2010 LGT Bank in Liechtenstein Ltd., Vaduz

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