Alternative performance measures

The LLB Group prepares its financial statements in accordance with the recognised International Financial Reporting Standards (IFRS). For increased transparency, it also reports alternative performance measures (APMs).

Alternative performance measures are financial measures of historical or future financial performance, financial position or cash flows that are not defined in the IFRS. APMs provide useful information on the performance of the business. They also reflect aspects of operating targets and are monitored by the LLB's Group Executive Board.

The alternative performance measures used in this report should be regarded as complementary information to the IFRS performance measures. They comply with the SIX Swiss Exchange's Directive on the Use of Alternative Performance Measures (DAPM). APMs do not have any standardised meaning and may not be comparable with similar measures used by other companies.

Assets in own-managed funds

This item comprises the assets of the LLB Group's own managed, collective investment funds.

Assets under management

Assets under management comprise all client assets managed or held for investment purposes. Basically, these include all balances due to customers, fiduciary time deposits and all valued portfolio assets. Also included are other types of client assets which can be deduced from the principle of the investment purpose. Custody assets (assets held solely for transaction and safekeeping purposes) are not included in assets under management.

Assets with discretionary mandates

Securities, value rights, precious metals, the market value of fiduciary investments with third parties and customer deposits are included in the calculation of assets with discretionary mandates. The figures comprise both assets deposited with Group companies and assets deposited with third parties, for which the Group companies hold a discretionary mandate.

Basic earnings per share

Net income attributable to the shareholders of LLB divided by the weighted average number of shares.

Business volume

Sum of assets under management and loans.

Cost-Income-Ratio

Operating expenses (excluding provisions for legal and litigation risks) in relation to operating income (excluding expected credit losses).

Cost-Income-Ratio (adjusted to consider market effects)

Operating expenses (excluding provisions for legal and litigation risks) in relation to operating income (excluding expected credit losses and adjusted to consider market effects from interest rate swaps and price gains).

Dividend yield at year-end price

Dividend per share in per cent of year-end price of the LLB share.

Gross margin

Operating income (excluding expected credit losses) relative to average monthly business volumes.

Growth of net new money

Net new money in per cent of the assets under managenemt from the previous period.

Market effects

Sum of income from interest rate swaps and price gains from financial investments

Net new money

This position is composed of the acquisition of new clients, lost client accounts and inflows or outflows from existing clients. Performancerelated asset fluctuations, e. g. price changes, interest and dividend payments including interest, commissions and expenses charged to client accounts, are not regarded as inflows or outflows. Acquisitionrelated changes to assets will also not be considered.

Other assets under management

Securities, value rights, precious metals, the market value of fiduciary investments with third parties and customer deposits are included in the calculation of other assets under management. The figures comprise assets for which an administration or advisory mandate is exercised.

Payout ratio

Total dividends paid in divided by net profit

Price / earnings ratio

Net income per share in relation to year-end price of the LLB share

Return on Equity

Net profit attributable to the shareholders of LLB in per cent of the average equity attributable to the shareholders of LLB.

Total return on the LLB share

Dividends and price gain in per cent of year-end price of the LLB share.