LLB-GB-2007 Uk BVD:Layout 1 14.03.2008 11:39 Uhr Seite 5 LLB-GB-2007 Uk BVD:Layout 1 14.03.2008 11:39 Uhr Seite 6
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146th Annual Report 2007 1925E 04.08 6 4 distinguished 146th Annual Report 2007 experienced 2 fresh 1 5 authentic dedicated 3 personal Liechtensteinische Landesbank AG 146th Annual Report 2007 1925E 04.08 6 4 distinguished 146th Annual Report 2007 experienced 2 fresh 1 5 authentic dedicated 3 personal Liechtensteinische Landesbank AG LLB-GB-2007_de_1103:Layout 1 14.03.2008 9:19 Uhr Seite 3 LLB-GB-2007_de_1103:Layout 1 14.03.2008 9:19 Uhr Seite 3 LLB-GB-2007_uk_BVD:Layout 1 14.03.2008 11:39 Uhr Seite 5 LLB-GB-2007_uk_BVD:Layout 1 14.03.2008 11:39 Uhr Seite 6 Imprint Published by Liechtensteinische Landesbank AG 9490 Vaduz, Liechtenstein Design and layout Montfort Werbung 9491 Ruggell, Liechtenstein Printed by BVD Druck + Verlag AG 9494 Schaan, Liechtenstein Photos Scanderbeg Sauer Photography 8001 Zurich, Switzerland Interviews write and bite 29308 Winsen, Germany Paper Printed on Munken Polar and Scheufelen PhoeniXmotion Xenon Ideals 7 Contents >> Information for shareholders 86 Consolidated financial statement >> Key figures of the LLB Group 87 Report of the Group auditors Ideals Success is based on ideals, on values, that need to be nurtured, 12 Letter to shareholders 88 Consolidated management report cultivated and refined. Ideals serve as a measure, a planning aid, a driving 14 Organisational structure 90 Consolidated income statement force and a wellspring of ideas. They are a milestone on the path to reach- on 1 January 2008 91 Consolidated balance sheet ing goals and, at the same time, they provide food for thought along the 18 Strategy and organisation 92 Consolidated statement of way. We fill our values and ideals with new life everyday, and while doing recognised income and expense so, we interact with those who think like we do, with those who are like 28 Review of operations 93 Consolidated cash flow statement us: authentic, fresh, personal, experienced, dedicated, distinguished. 28 Domestic Clients 94 Notes to the consolidated financial 33 International Clients statement 36 Institutional Clients 41 Corporate Center 170 Financial statement of LLB AG, Vaduz 44 Employees 171 Report of the independent auditors 49 Legal and regulatory framework 172 Management report of the Liechtenstein financial centre 173 Balance sheet 51 Sustainability and environment 174 Profit and loss account 54 Social responsibility and sponsoring 175 Distribution of balance sheet profit 57 Corporate governance 176 Notes to the financial statement 198 Locations and addresses Ideals 7 Contents >> Information for shareholders 86 Consolidated financial statement >> Key figures of the LLB Group 87 Report of the Group auditors Ideals Success is based on ideals, on values, that need to be nurtured, 12 Letter to shareholders 88 Consolidated management report cultivated and refined. Ideals serve as a measure, a planning aid, a driving 14 Organisational structure 90 Consolidated income statement force and a wellspring of ideas. They are a milestone on the path to reach- on 1 January 2008 91 Consolidated balance sheet ing goals and, at the same time, they provide food for thought along the 18 Strategy and organisation 92 Consolidated statement of way. We fill our values and ideals with new life everyday, and while doing recognised income and expense so, we interact with those who think like we do, with those who are like 28 Review of operations 93 Consolidated cash flow statement us: authentic, fresh, personal, experienced, dedicated, distinguished. 28 Domestic Clients 94 Notes to the consolidated financial 33 International Clients statement 36 Institutional Clients 41 Corporate Center 170 Financial statement of LLB AG, Vaduz 44 Employees 171 Report of the independent auditors 49 Legal and regulatory framework 172 Management report of the Liechtenstein financial centre 173 Balance sheet 51 Sustainability and environment 174 Profit and loss account 54 Social responsibility and sponsoring 175 Distribution of balance sheet profit 57 Corporate governance 176 Notes to the financial statement 198 Locations and addresses 9 Information for shareholders Key figures << LLB bearer share Consolidated income statement + / – % to in CHF millions 2007 2006 2005 2006 Security number 3019524 Income statement ISIN number LI0030195247 Operating income 560.1 456.9 392.5 22.6 Listing SWX (Swiss Exchange) Operating expenses 272.5 186.1 161.1 46.4 Ticker symbols Bloomberg LLB SW Net profit attributable to the shareholders of LLB AG 240.0 245.7 212.2 –2.3 Reuters LLB.S Telekurs LLB Performance figures Cost/income ratio (in percent) 48.6 40.7 41.0 Return on equity attributable to the shareholders Capital structure of LLB AG (in percent) 15.9 15.8 13.3 + / – % to 31. 12. 2007 * 31. 12. 2006 * 31. 12. 2005 31. 12. 2006 Share capital (in CHF thousands) 154'000 164'000 164'000 –6.1 Total shares issued 30'800'000 32'800'000 32'800'000 –6.1 Consolidated balance sheet and capital management Total shares outstanding, eligible for dividend 28'453'717 28'421'090 32'682'530 0.1 + / – % to Weighted average number of shares 28'463'422 29'719'440 32'719'090 –4.2 in CHF millions 31. 12. 2007 31. 12. 2006 31. 12. 2005 31. 12. 2006 Balance sheet Equity attributable to the shareholders of LLB AG 1'578 1'438 1'664 9.8 Total assets 21'645 14'970 13'158 44.6 Information per bearer share + / – % to 31. 12. 2007 * 31. 12. 2006 * 31. 12. 2005 31. 12. 2006 Capital ratio Par value (in CHF) 5.00 5.00 5.00 0.0 Tier 1 ratio (in percent) 9.7 15.1 20.3 Share price (in CHF) 99.50 105.50 79.50 –5.7 Risk-weighted assets 13'509 7'924 6'891 70.5 Basic earnings (in CHF) 8.43 8.27 6.49 2.0 Price/earnings ratio 11.80 12.76 12.25 Dividend (in CHF) ** 3.40 3.20 2.80 6.3 Others + / – % to * Adjusted to consider the share split of 1:10 on 10 May 2007. 31. 12. 2007 31. 12. 2006 31. 12. 2005 31. 12. 2006 ** Proposal of the Board of Directors to the General Meeting of Shareholders on 9 May 2008. Assets under management (in CHF millions) 59'989 50'525 43'042 18.7 Employees (full-time equivalents, in positions) 943 645 588 46.2 Comparison of LLB bearer share with the Swiss Market Index (SMI) indexed from 1 January 2003 240 220 200 180 160 For ease of reading, the Liechtensteinische Landesbank Aktiengesellschaft is referred to 140 variously in the following as the Liechtensteinische Landesbank, LLB AG and the LLB. 120 Bank Linth LLB AG is also referred to in this report as Bank Linth. 100 The 2007 Annual Report is also available in an interactive online version: German: http://gb2007.llb.li 80 English: http://ar2007.llb.li This Annual Report is also available in German. The German version is authoritative. 60 2003 2004 2005 2006 2007 Liechtensteinische Landesbank (LLB) Swiss Market Index (SMI) 9 Information for shareholders Key figures << LLB bearer share Consolidated income statement + / – % to in CHF millions 2007 2006 2005 2006 Security number 3019524 Income statement ISIN number LI0030195247 Operating income 560.1 456.9 392.5 22.6 Listing SWX (Swiss Exchange) Operating expenses 272.5 186.1 161.1 46.4 Ticker symbols Bloomberg LLB SW Net profit attributable to the shareholders of LLB AG 240.0 245.7 212.2 –2.3 Reuters LLB.S Telekurs LLB Performance figures Cost/income ratio (in percent) 48.6 40.7 41.0 Return on equity attributable to the shareholders Capital structure of LLB AG (in percent) 15.9 15.8 13.3 + / – % to 31. 12. 2007 * 31. 12. 2006 * 31. 12. 2005 31. 12. 2006 Share capital (in CHF thousands) 154'000 164'000 164'000 –6.1 Total shares issued 30'800'000 32'800'000 32'800'000 –6.1 Consolidated balance sheet and capital management Total shares outstanding, eligible for dividend 28'453'717 28'421'090 32'682'530 0.1 + / – % to Weighted average number of shares 28'463'422 29'719'440 32'719'090 –4.2 in CHF millions 31. 12. 2007 31. 12. 2006 31. 12. 2005 31. 12. 2006 Balance sheet Equity attributable to the shareholders of LLB AG 1'578 1'438 1'664 9.8 Total assets 21'645 14'970 13'158 44.6 Information per bearer share + / – % to 31. 12. 2007 * 31. 12. 2006 * 31. 12. 2005 31. 12. 2006 Capital ratio Par value (in CHF) 5.00 5.00 5.00 0.0 Tier 1 ratio (in percent) 9.7 15.1 20.3 Share price (in CHF) 99.50 105.50 79.50 –5.7 Risk-weighted assets 13'509 7'924 6'891 70.5 Basic earnings (in CHF) 8.43 8.27 6.49 2.0 Price/earnings ratio 11.80 12.76 12.25 Dividend (in CHF) ** 3.40 3.20 2.80 6.3 Others + / – % to * Adjusted to consider the share split of 1:10 on 10 May 2007. 31. 12. 2007 31. 12. 2006 31. 12. 2005 31. 12. 2006 ** Proposal of the Board of Directors to the General Meeting of Shareholders on 9 May 2008. Assets under management (in CHF millions) 59'989 50'525 43'042 18.7 Employees (full-time equivalents, in positions) 943 645 588 46.2 Comparison of LLB bearer share with the Swiss Market Index (SMI) indexed from 1 January 2003 240 220 200 180 160 For ease of reading, the Liechtensteinische Landesbank Aktiengesellschaft is referred to 140 variously in the following as the Liechtensteinische Landesbank, LLB AG and the LLB. 120 Bank Linth LLB AG is also referred to in this report as Bank Linth.