Successful year 2018 is reason for optimism
The banks in Liechtenstein have had a successful year. Global assets under management are at record levels, and capitalisation is above average. In 2018, the banks created about 150 new full-time positions in Liechtenstein. Overall, the results show that clients at home and abroad continue to have great confidence in Liechtenstein banking.
The latest Banking Statistics, which have just been published, show that the Liechtenstein banking centre's performance was once again very successful in 2018. The assets under management of all banks (incl. subsidiaries abroad) increased by 3.7% to an all-time high of about CHF 305 billion. Net new money of more than CHF 33 billion was gratifying and contributed to this record. This figure underscores the continued high level of confidence of domestic and international clients in the quality and innovation of Liechtenstein banks.
Liechtenstein and its banks attach great importance to stability as a core value. The Banking Statistics clearly underscore this. The risk-weighted Tier 1 ratio on an individual basis is an above-average 20.7%. The important leverage ratio amounts to an excellent 7.5%. Finally, the high liquidity coverage ratio (LCR) of more than 170% shows that security and stability are very important for the banking centre.
Traditionally, the banks are characterised by a long-term business policy with consistent risk management. Despite a challenging economic environment with negative interest rates, this is reflected in the figures. The result from ordinary activities was CHF 390 million, a very gratifying result (+17.6%). This was achieved with a very low average lending rate on residential properties of less than 50% and a still extremely low non-performing loan ratio of 0.5%. The good cost/income ratio for the banking centre – a stable 67% – and the return on equity (RoE) of a about 6% once again prove that the banks have done their homework and can look to the future in a stronger position.
All this not only benefits bank clients, but also the whole country. The banks continue to be important employers. More than 150 full-time positions were created in 2018. The banking industry employs a total of 2,125 people (full-time equivalents) and offers 57 apprentices an attractive entry into their careers, with a share of women exceeding 50%. In addition, with CHF 32 million or 14% of total corporate tax revenue and 43% of income tax revenue, bank make a significant component of the national budget.
