LGT’s 1H results mixed, business growth slows

Liechtenstein-headquartered wealth and asset
manager LGT Group said it remains cautious on the development of
business over the rest of the year after witnessing an 18%
year-on-year profit decline.

For the first six months ending 30 June 2011,
LGT’s profits stood at CHF82.1m ($100m), compared with CHF99.6m for
the corresponding period a year before.

The wealth manager said the decline was
influenced by volatility in financial markets, dropping client
activity and the strong Swiss franc.

Operating income – down; new assets –
up

LGT’s operating income reached CHF408.1m for
the first half of this year, a 5% drop compared with CHF427.5m for
the same period in 2010.

In the first six months of 2011, LGT group’s
net new assets (NNA) stood at CHF5.7bn, a striking increase
compared with CHF3.1bn as at 31 December 2010 and CHF1.1bn for
first half of 2010.

Global changes

Part of LGT’s NNA growth could be the result
of its increasing efforts to diversify internationally and expand
in emerging markets.

In April it was granted a full banking license
in Hong Kong, giving it a second booking platform in Asia alongside
Singapore.

Its decision to
sell its 7-office German private banking business in May
underlined its commitment to an emerging markets strategy.

Slight assets gains

Assets under administration (AuA) also saw a
slight growth reaching CHF88.1bn in June this year, compared with
CHF86.1bn in December 2010.

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