LLB, the Liechtenstein-based banking group, has reported a strong set of 2016 annual results.

Annual profit at LLB Group climbed 20.4 per cent in 2016 to SFr103.9 million (2015: SFr86.3 million), prompting the firm's board of directors to propose a dividend increase to SFr1.70 per share ($1.68).

Operating income improved by 18.7 per cent to SFr371.7 million (2015: SFr313.2 million), while net interest income increased by 4.2 per cent to SFr138.1 million (2015: SFr132.5 million).

Net interest income from clients rose by 3.7 per cent over the previous year, although fee and commission income fell by 2.6 per cent to SFr145.7 million (2015: SFr149.6 million). “The uncertainty on the financial markets made clients more cautious in their market transactions,” the firm said in its latest results statement.

In other highlights, net trading income was SFr55.9 million (2015: SFr33.1 million) and net income from financial investments was SFr21.8 million (2015: –SFr0.7 million).

Meanwhile, operating expenses increased by 16.8 per cent over the previous year to SFr258.2 million. Personnel expenses rose by SFr17.1 million to SFr140.8 million, due to the expansion to 858 full-time equivalent positions (31 December 2015: 816), as well as other compensation-related factors.

At the next general meeting of shareholders, Dr Hans-Werner Gassner will leave the board of directors because of the term limit prescribed by law, the statement added. Georg Wohlwend, meanwhile, is being put forward for proposed election to succeed Gassner.

The board also suggests that Dr Gabriela Nagel-Jungo and Urs Leinhäuser be re-elected for a second term of three years. Nagel-Jungo is a member of the strategy committee and Leinhäuser is a member of the group audit committee and the group risk committee. Both were elected for the first time in 2014.

The group's cost/income ratio was 62.8 per cent at the end of 2016, compared to 69.5 per cent a year earlier. Assets under management ticked up from SFr45.6 billion to SFr46.4 billion.