Liechtensteinische Landesbank (LLBN) H2 2023 earnings summary

Executive summary

• FY23 net profit rose 10.2% to CHF 164.7 million, the best business result in more than 10 years; business volume increased 3.9% to CHF 102.2 billion.

• ACT-26 priorities remain growth and earnings; a solid FY24 result is expected amid continued uncertainty.

Financial highlights

• Operating income increased 7.7% to CHF 541.8 million; higher interest and trading income offset lower fee income.

• Net interest income after expected credit losses rose 9.8% to CHF 164.2 million; net fee and commission income fell 5.2% to CHF 200.0 million.

• Net trading income grew 27.2% to CHF 173.2 million, led by foreign exchange trading; operating expenses rose 6.1% to CHF 348.4 million.

• Operating profit before tax rose 10.5% to CHF 193.4 million; basic EPS increased 11.4% to CHF 5.37.

Outlook and guidance

• 2024 priorities include pursuing ambitious growth and earnings objectives and continuing ACT-26 execution; a solid FY24 result is expected.

• ACT-26 targets annual net new money and net new loans above 3%; 2023 outcomes were 1.6% and 6.6%, respectively.

• 2026 Cost Income Ratio target is 65% versus 64.3% in 2023; Tier 1 ratio target is above 16% versus 19.8% in 2023.

• Net-zero CO2 target for 2040 remains on track.