Group financial statement

Prepared in accordance with International Financial Reporting Standards (IFRS), our consolidated financial statement shows a net profit attributable to the shareholders of LLB AG of CHF 92.7 million. In comparison with the first half of 2008, when the figure stood at CHF 86.3 million, this represents an increase of 7.3 percent.

The ratio of operating expenses to operating income amounted to 58.7 percent (equivalent period in the previous year: 58.6 %) on 30 June 2009. Earnings per share rose by 7.3 percent to CHF 3.25 (previous year: CHF 3.03).

Assets under management

At the end of June 2009, client assets stood at CHF 47.6 billion. Compared with 31 December 2008 (CHF 46.1 billion), this corresponds to an increase of 3.3 percent. On account of the financial and economic crises as well as the uncertainty among investors, we posted a net new money outflow of CHF 304.0 million (previous year: inflow of CHF 353.0 million) in the first half of 2009.

Assets in own-managed funds climbed by 7.8 percent to CHF 3.3 billion and assets with discretionary mandates by 6.3 percent to CHF 8.1 billion. Other assets under management amounted to CHF 36.2 billion per 30 June 2009 (31 December 2008: CHF 35.4 billion).

Income statement

In comparison with the previous year (CHF 238.0 million), we generated operating income in the first half of 2009 of CHF 254.6 million, an increase of 7.0 percent.

Net interest income contracted by 10.5 percent to CHF 106.3 million. Uncertainty among investors and lower portfolio values led to a sharp decline in net fee and commission income of 22.8 percent to CHF 109.6 million (previous year: CHF 142.0 million). The development of the individual positions was: brokerage fees minus 32.5 percent, securities administration minus 18.5 percent, commissions from asset management and investment business minus 26.2 percent, as well as investment fund management minus 26.9 percent. Net trading income stood at CHF 17.7 million, 35.3 percent above the previous year's figure. The higher income is mainly attributable to value changes with swaps, which developed positively thanks to the interest rate environment. Net income from financial investments at fair value through profit and loss, as well as the share of net income from investments in associates amounted to CHF 21.0 million. On account of the development on the financial markets, a negative result of CHF 46.6 million was recorded in the first half of 2008. Other income stood at CHF 0.04 million on 30 June 2009 (previous year: CHF 10.8 million).

Operating expenses rose by 7.1 percent to CHF 149.5 million compared with the first half of 2008.

Personnel expenses climbed by 0.7 percent to CHF 87.9 million (previous year: CHF 87.2 million). Adjusted to take into account part-timers, at the end of June 2009 the LLB Group employed 1'024 persons (31 December 2008: 1'010 persons). The average headcount in the period under report was 1'022 persons (equivalent period in the previous year: 956 persons). At CHF 39.5 million, general and office expenses were 0.4 percent higher than the figure in the first half of 2008. Depreciation and amortisation rose by 20.3 percent to CHF 13.6 million. Adjustments, provisions and losses amounted to CHF 8.5 million (previous year: CHF 1.6 million).

Balance sheet

In comparison with the end of December 2008, the positions in the balance sheet have not changed significantly.

As per 30 June 2009, the consolidated balance sheet total remained constant at CHF 23.1 billion (31 December 2008: CHF 23.2 billion). Equity capital attributable to the shareholders of LLB AG stood at CHF 1.6 billion at 30 June 2009 (31 December 2008: CHF 1.6 billion). The tier 1 ratio amounted to 13.4 percent (31 December 2008: 13.5 %) and the return on equity attributable to the shareholders of LLB AG stood at 11.8 percent (previous year: 11.0 %).