Liechtensteinische Landesbank (LLBN) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached CHF 90.2 million, up 1.7% year-over-year, with EPS at CHF 2.95, a 2% increase from H1 2023.

• Business volume hit a record CHF 109.9 billion, up 7.5% from year-end 2023, with organic growth of CHF 1 billion and the best half-year result in 15 years.

• Operating income rose 5.9% to CHF 283.0 million, driven by higher fee, commission, and trading income, despite a decline in interest income.

• Strategic investments in digitalisation and expansion in Germany, Switzerland, and Austria contributed to higher operating expenses.

• The acquisition of ZKB Österreich is expected to add CHF 3 billion in business volume, strengthening the Austrian market position.

Financial highlights

• Group net profit was CHF 90.2 million (+1.7% YoY); operating income CHF 283.0 million (+5.9% YoY); cost-income ratio rose to 65.2%.

• Net fee and commission income increased by CHF 4.7 million to CHF 102.3 million (+4.8% YoY); trading income rose 10.8% to CHF 91.4 million.

• Assets under management reached CHF 94.3 billion (+8.4% from year-end 2023), supported by positive market performance and net inflows.

• Mortgage loans exceeded CHF 14 billion for the first time, with total client loans at CHF 15.6 billion.

• Net new money reached CHF 792 million (+1.8% annualized); net new loans CHF 217 million (+2.8% annualized).

Outlook and guidance

• ACT-26 strategy targets over 3% annual net new money and net new loans, cost-income ratio of 65% by 2026, and Tier 1 ratio above 16%.

• On track for net zero CO2 by 2040 and continued investments in digitalization and client interaction.

• Strategy implementation is over halfway complete, with expectations for a solid full-year 2024 result despite market challenges.

• Business model remains diversified and robust, with a clear, forward-looking strategy for sustainable and profitable growth.