LGT achieves very strong net inflows and strong business growth in the first half of 2021

VADUZ, Liechtenstein, August 26, 2021 / PRNewswire / – LGT, International Private Banking and Asset Management Group owned by the Princely House of Liechtenstein, achieved significant growth in the first half of 2021 and generated a group result of CHF 180.6 million. Assets under management increased by 14% to reach CHF 275.0 billion like at the end of June 2021 based on favorable market developments and high levels of customer activity. Very high net asset inflow of 14.1 billion francs (+ 12% on an annualized basis) and the solid performance of investments contributed to this result. LGT is confident that it will continue on its path of sustainable growth in the second half of 2021.

LGT continued to develop its client activity in the first half of 2021, while offering its clients improved access to its expertise in investing in different asset classes. Favorable market conditions and a keen interest in LGT’s sustainable investment solutions have contributed to generalized growth in the group’s revenues. At the same time, LGT made further investments to strengthen its advisory services and investment processes, and to expand its digital platforms.

Driven by high transaction volumes, an increase in income from the brokerage activity and a larger asset base compared to the same period of the previous year, service revenues increased by 21% to 692 million francs. The result of trading activities and other operating income were 159.5 million francs (down 14%), with currency hedges offsetting the increase in revenues from trading activities, in particular derivatives trading for clients of Asia. Net interest income was 101.9 million francs, down 28% compared to the same period a year earlier, reflecting the still low interest rate environment. Globally, total operating income increased by 6% to reach 953.4 million francs.

LGT continued to invest heavily in the development of its activity in the first half of 2021. A 17% increase in personnel costs for CHF 562.6 million reflects organic staff growth as well as higher accruals for long-term performance-based compensation. TO 127.7 million francs, business and office expenses were down 5% from the first half of 2020, as travel and marketing expenses fell due to the pandemic, while IT and consulting expenses increased. Overall, total operating expenses increased 12% to 690.2 million francs.

The cost / income ratio stood at 72.4% at the end of June 2021, compared to 75.0% at December 31, 2020 and 68.6% at June 30, 2020. LGT made a group profit of CHF 180.6 million for the first half of 2021, 5% less than the excellent result of the previous year.

LGT is very well capitalized with a Tier 1 capital ratio of 22.8% at June 30, 2021 against 21.9% at the end of 2020, and has a high level of liquidity.

Overall growth in new net assets of 12% (annualized)

LGT recorded a very strong net inflow of 14.1 billion francs in the first half of 2021, corresponding to an annualized growth rate of 12%. Both private banking and asset management contributed to this result with strong net asset inflows in all regions. The acceleration in growth observed in the second half of 2020 thus continued in the first half of 2021.

Net asset inflows, positive market and investment performance as well as currency effects led to a 14% increase in assets under management at CHF 275.0 billion like a June 30, 2021 compared to the end of 2020. LGT Private Banking in this context has exceeded 200 billion francs asset under management brand for the first time, and the LGT Capital Partners group’s asset management unit has grown its asset base to over 70 billion francs like at the end of June 2021.

Strategy and outlook

LGT is confident that it will remain on its sustainable growth path in the second half of 2021 and expects positive trends to continue in established and growing markets. In german speaking Europe, LGT completed the acquisition of the wealth management business of UBS in Austria at the end of July 2021 and strengthened its position in Germany with the acquisition of a strategic minority stake in the digital asset manager LIQID. Among other benefits, LGT expects this cooperation to give impetus to the further digitization of its own services. LondonLGT Vestra, of which LGT acquired a majority stake in 2016 and full ownership in 2020, has become an important and high performing pillar of the group. In the Middle East and Asia, LGT is a leading private bank and has, over the past five years, doubled its workforce to around 1,000 and tripled assets under management to over 76 billion francs. Along with its geographic expansion, LGT has also continuously invested in its investment expertise in all asset classes, in digital solutions and processes, and in improving its services for very high net worth clients.

Regarding the split of the three LGT business units, the Lightrock impact investment unit has already been fully separated from the group, while LGT Private Banking and LGT Capital Partners now operate under separate management structures, and their new legal configuration will come into effect in 2022. These measures will further refine the orientation of individual businesses and should result in additional growth momentum.

HSH the Prince Max von und zu Liechtenstein, Chairman of LGT, said: “Building on the strong growth of the recent past, we once again achieved very good results in the first half of the year of our 100e birthday. Since its founding, LGT has grown into an internationally recognized and respected institution and continues to grow in all regions. Our recent exceptionally strong growth in new net assets underscores the attractiveness of the LGT brand, which reflects exceptional investment expertise. Most importantly, it underscores the trust our customers place in us and for which we are very grateful. We will continue to invest in the quality of our advice, solutions and services, as well as in our people, to whom we owe our success. “

LGT in brief

LGT is a leading international private banking and asset management group fully controlled by the Princely Family of Liechtenstein for over 90 years. Like a June 30, 2021, LGT managed the assets of CHF 275.0 billion ($ 297.4 billion) for high net worth individuals and institutional clients. LGT employs more than 3,900 people who work at more than 20 sites in Europe, Asia, the Americas and Middle East. www.lgt.com

Key figures according to 06/30/2021

01.01. – 30.06.2021

01.01. – 30.06.2020

Switch %

Consolidated income statement (in millions of CHF)

Net interest income and credit losses

101.9

142.4

-28.4

Service revenues

692.0

572.3

20.9

Income from trading activities and other operating income

159.5

185.3

-13.9

Total of exploitation products

953.4

900.0

5.9

Personal expenses

562.6

482.3

16.6

Business and office expenses

127.7

134.9

-5.4

Total operating expenses

690.2

617.2

11.8

Depreciation, amortization and provisions

56.8

67.3

-15.6

Taxation and minority interests

25.9

24.9

4.0

Group benefit

180.6

190.7

-5.3

Net inflow of assets (in CHF billion)

14.1

1.6

06/30/2021

31.12.2020

Assets under management (in CHF billion)

275.0

240.7

14.2

Total assets (in CHF billion)

50.2

49.9

0.7

Group equity (in millions of CHF)

5 536

4 837

14.5

Ratios (in%)

Expense / income ratio

72.4%

75.0%

Tier 1 ratio

22.8%

21.9%

Liquidity coverage ratio

194.9%

221.6%

Effective

3 910

3,838

1.9

Evaluation Moody’s / Standard & Poor’s for LGT Bank Ltd.

Aa2 / A +

Aa2 / A +

Half-year figures are not audited.

Related links:

https://www.lgt.com


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