LGT, the private banking and asset management group owned by Princely Family of Liechtenstein, has reported a profit drop in 2019 though inflows doubled.
Performance highlights
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The firm’s group profit was CHF308.1m in 2019, a fall of 2% from CHF314.1m in the prior year.
Total operating income increased 8% to CHF1.82bn from CHF1.67bn over the period.
The group’s net interest income of CHF286.1m was 3% higher than the previous year.
Income from services increased 7% year-on-year to CHF1.16bn. The growth was said to be due to “larger average asset base and higher performance-based revenues”.
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By GlobalDataHigher client trading volumes led to a 20% surge in income from trading activities and other operating income.
Total operating expenses rose 9% to CHF1.35bn from CHF1.24bn, driven largely by a 15% increase in personnel expenses. However, business and office expenses dipped 11% to CHF281.9m from CHF316.4m.
Net asset inflows increased to CHF13.9bn in 2019 from CHF6.8bn in 2018, driven by the group’s Private Banking and Asset Management businesses.
The growth in inflows, along with favourable market conditions, took assets under management at LGT to CHF227.9bn as of 31 December 2019. The figure is a 15% rise from CHF198.2bn a year ago.
The group’s cost-income ratio at the end of December 2019 remained flat at 74.1%.
LGT CEO Prince Max von und zu Liechtenstein said: “We once again achieved good results last year and we continue to progress on our successful growth trajectory – firmly based on the trust our clients place in us, our financial solidity and our broad offering of investment solutions.
“We are convinced that our long-term and comprehensive approach to business is an important prerequisite for sustainable success. In this context, we aspire to be a leader when it comes to integrating sustainability criteria into our product range and business activities.”
Group to move away from coal
LGT said that it will end coal-related investments by excluding firms that produce coal or generate energy from coal.
