LLB focuses on its "elevate" strategy for growth, excellence and resilience

The new strategy builds on the success of its previous strategy period ACT-26. During this period, LLB achieved profitable growth, improved its efficiency and strengthened the Group’s ability to change. Since 2016, business volume has thus more than doubled, rising to CHF 132 billion. On top of that, average net profit increased by around 50 per cent compared to the previous strategy period.

LLB has automated and digitised core processes, introduced new digital services and embedded sustainability even more broadly in its corporate culture. It has also achieved all its strategic objectives.

* annualised growth rate

At the same time, the environment is changing faster and more profoundly than in previous strategy periods. Clients expect both digital and personal services. The generation change and resulting transfer of wealth are changing the requirements for advisory and banking services. New technologies – artificial intelligence in particular – place added pressure on the market to change. In addition to this, there are ever greater requirements in the areas of regulation, data protection and cybersecurity, as well as for a modern and future-proof technology and system landscape.

Chairman of the Board of Directors Georg Wohlwend had this to say: "With ACT-26, LLB has once again demonstrated its ability to deliver results and shown that it is capable of performing even in a challenging environment. ACT-26 has enabled us to create a strong foundation for the future. LLB is today more growth-driven, more profitable, more efficient and more innovative than it was in 2021. The important thing to do now is actively shape the next chapter of our development. 'Elevate' creates the optimal conditions for this: growth creates future viability, excellence creates customer satisfaction, and resilience strengthens trust. In short: ‘elevate’ will unlock our potential and create added value."

Growth, excellence and resilience as strategic priorities

At the centre of "elevate" are three core elements: growth, excellence, and resilience. They form the strategic framework for the further development of LLB over the next five years.

Growth leads to future viability

Growth creates the scope for further development and investment. Growth is based on client benefits, clear positioning, strong relationships and economic discipline. Here, the Bank relies primarily on organic growth with the expansion of existing business areas and working specifically on established markets.

Its focus remains on the four business segments Direct Client Business, Private Banking, Corporate Banking Business and B2B Business. LLB also plans to further develop existing client relationships, expand its advisory and support expertise, and exploit additional growth opportunities in its home and target markets.

For this purpose, LLB is specifically investing in the expansion of its Private Banking business locations in Switzerland and Germany, whilst positioning itself even more clearly as an investment bank in the domestic markets of Liechtenstein, Switzerland, Austria and Germany. It will therefore continue its specific market strategy of focusing on the D-A-CH-LI region plus selected international markets.

In the corporate banking business, the Bank aims to expand its service business, thereby diversifying its earnings structure, and provide comprehensive support to entrepreneurs in both business and private financial matters.

LLB pans to further strengthen its position as a reliable partner for external asset managers, trustees, family offices and institutional investors and combine it with its expertise in the fund business and in asset management.

The direct client business is an important pillar for the Bank and is always being further developed. The investment app willbe remains the innovation hub for the entire LLB Group, increasing the systematic transfer of digital sales expertise into the direct client business.

Excellence creates client satisfaction

LLB demonstrates excellence by providing relevant advisory services and high quality while using simple processes and effective technology. The goal is to streamline processes and create more time for clients. Personal advice remains a key strength. So this is precisely what LLB will develop as part of its "V30" sales initiative, combining it with modern technology and clear sales management. This will help better address client needs and consistently unlock its potential for growth.

LLB will continue to invest in modern systems, artificial intelligence, digital transformation and the further development of end-to-end processes. This investment will help to increase productivity and quality as well as reduce the effort and cost involved in administrative activities.

Technology alone does not yet create added value. Crucial to this whole process are the dedicated employees who use it, further develop it and make it effective for the clients. LLB therefore also places a focus on the continuous training and further education of its employees.

Resilience strengthens trust

With the third core element of resilience, LLB aims to further strengthen stability, trust and its capacity to act. This includes financial strength, solid capitalisation, risk management, cybersecurity and data protection.

The strategy involves, among other things, expanding operational resilience, continuing to effectively protect critical systems and data, and identifying and implementing regulatory developments and requirements at an early stage.

Sustainability remains on LLB’s strategic agenda, helping it to strengthen future viability and resilience. At the same time, LLB remains committed to its net-zero ambition until 2040.

Clear financial targets and long-term dividend strategy

The LLB Group will maintain its diversified earnings structure with its two strong market divisions of Private and Corporate Banking under the leadership of Michael Hartmann, as well as International Wealth Management, led by Natalie Flatz. The Group CDO division is headed by Patrick Fürer, Group CFO is Markus Schifferle and Group CEO is Christoph Reich. Natalie Flatz will become Deputy Group CEO.

Group CEO Christoph Reich gives this summary: "The new 'elevate' strategy will open the next chapter starting from 2027. It is a growth and investment strategy. We are building on what makes us strong and resolutely focusing on the future: on the needs of our clients, on the development of our markets, on new technological capabilities and on the way we as a group can collaborate even more effectively. This is how we ensure the future viability of LLB."

The "elevate" strategy pursues three financial targets:

• annual net new money inflow of 3 per cent
• Cost Income Ratio of 65 per cent in 2031
• CET1 ratio of at least 18 per cent

Even with its new strategy, LLB remains committed to its attractive dividend strategy, allowing for a distribution of around 50 per cent of the Group net income. Since 2022, the dividend on LLB shares has increased by more than 20 per cent.