Liechtensteinische Landesbank has spent a lot of money on new personnel and a refurbishment of branches last year. It nevertheless earned substantially more than in 2015.
Liechtensteinische Landesbank (LLB) said it had a profit of about 104 million francs in 2016, a fifth more than in 2015, the company said in a statement today. Net income amounted to 86.3 million in 2015.
«In a demanding environment characterized by negative interest rates, volatile financial markets, and increasing regulation, the LLB Group can look back on a positive 2016 business year,» the bank said.
Slightly Higher AuM
LLB, which is majority-owned by the Principality of Liechtenstein, mentioned two factors for the increase in profit in today's advance information statement. It had higher income from financial investments and a valuation gain for interest rate hedging instruments due to increasing long-term interest rates in the second half of the year.
Assets under management rose to 46.4 billion francs from 45.6 billion a year earlier, while loans increased to 11.5 billion from 11 billion.
Strategic Personnel Expansion
Operating expenses also rose significantly, to 258 million. This is 16 percent more than in 2015. The increase is due to a strategic personnel expansion, the renovation of branches, accruals for variable remuneration and the creation of provisions for legal and litigation risks, LLB said.
The bank will publish the full financial statement for 2016 on March 14, 2017.
