Vaduz-based private bank Liechtensteinische Landesbank (LLB) has posted a net profit of CHF123.4m for the year ended 31 December 2019, marking its highest profit in a decade.
This is a 45% surge from the previous year’s figure of CHF85.1m.
The private bank’s operating income was CHF452.7m in 2019, up 13% compared to CHF399.7m in 2018.
Operating expenses grew 2% year-on-year to CHF311.3m, with personnel expenses increasing by CHF10m. However, general and administrative dipped by CHF 14 million.
Client assets under management as of 31 December 2019 reached CHF76.3bn, a 13% rise from the prior year.
Net inflows during the past year were CHF4.1bn in 2019, versus CHF1.3bn in 2018.
This was driven by all three booking centres in Liechtenstein, Austria, and Switzerland.
The inflows were driven by the Retail & Corporate Banking, Private Banking, and Institutional Clients units.
The investment fund business was said to be a key growth driver.
The group’s cost/income ratio at the end of December 2019 was 70%, compared to 77.7% in the previous year.
LLB chairman of the board of directors Georg Wohlwend said: “Four years ago, we set our course with the StepUp2020 strategy. Our Group continues to grow profitably.
“Thanks to broad diversification and targeted acquisitions, we have significantly improved our earning power and quality. And we have achieved this in spite of a very challenging market environment.”
However, the bank has warned about volatile markets in the coming time, partly due to the Covid-19 outbreak.
It said: “The market environment remains extremely difficult.
“Restrained business growth, negative interest rates, the volatile financial markets and the incalculable effects of a further spread of the corona virus continue to present a major challenge.”