LGT Announces Higher Profits and Strong Net Asset Inflows for the First Half of 2022

VADUZ, Liechtenstein, August 25, 2022 /PRNewswire/ — LGT, the international private banking and asset management group of the Princely House Liechtensteinmade a group profit of CHF 217.2 million in the first half of 2022, an increase of 20% year-on-year. In a market environment characterized by uncertainties, LGT generated very solid revenues and continued to invest in business expansion, digitalization and sustainable investment solutions. Assets under management remained stable at CHF 284.7 billion at the end of June 2022reflecting strong net asset inflows of CHF 6.2 billion and asset growth of CHF 15.6 billion of the acquisition of Crestone Wealth Management.

The first half of 2022 was exceptionally difficult due to geopolitical and economic uncertainties in international financial markets, which was also reflected in the generally subdued level of client activity. LGT has thus emphasized customer service, sustainable investment solutions and prudent risk management. Since May 12, 2022the costs and revenues of recently acquired Australian wealth manager Crestone were reflected in LGT’s results.

Generated LGT CHF 784.6 million services revenue in the first half of 2022, up 13% year-on-year, despite transaction-related revenue falling. To CHF 128.4 million, trading and other operating income were 19% lower than the same period a year earlier as hedging only partially offset lower trading volume. Net interest income increased 36% for CHF 138.2 million due to rising interest rates. Overall, LGT’s total operating income increased by 10% for CHF 1051.2 million.

Reflecting both the growth in the workforce, payroll expenses increased by 3% to CHF 582.1 million, despite lower accrued liabilities for long-term performance-related compensation. Business and office expenses increased by 25% to reach CHF 159.6 million due to greater investment in digitalization, increased travel, marketing and event spend, and increased consultancy costs. Overall, total operating expenses increased by 7% for CHF 741.6 million.

The cost/income ratio decreased to 70.6% at the end of June 2022compared to 75.2% in December 31, 2021 and 72.4% at June 30, 2021. Group profit for the first half of 2022 increased to CHF 217.2 million, 20% more than the period of the previous year. LGT is very well capitalized with a Tier 1 ratio at 18.4% at June 30, 2022compared to 22.1% at the end of 2021, and maintains a high level of liquidity.

Strong net asset inflows of CHF 6.2 billion

Despite the challenging market environment, LGT recorded strong net asset inflows from CHF 6.2 billion in the first half of 2022, which corresponds to annualized growth of 3%. After the exceptionally high net inflows of assets last year, LGT again achieved massive inflows, to which both LGT Private Banking and LGT Capital Partners contributed.

Assets under management remained stable at CHF 284.7 billion like a June 30, 2022compared to CHF 285.8 billion as of December 31, 2021, with negative market performance offset by net asset inflows, positive currency effects and CHF 15.6 billion of assets from the Crestone acquisition. Client assets managed by LGT Private Banking and LGT Capital Partners amounted to CHF 203.7 billion and CHF 81.0 billionrespectively.

Strategy and outlook

LGT will continue to consistently implement its strategy. Despite a more challenging environment, LGT is well positioned to achieve profitable growth throughout the year and help its customers navigate unpredictable markets.

The acquisition of Crestone, australia leader in wealth management for high net worth individuals, enabled LGT Private Banking to expand its strong position in Asia at the widest Asia Pacific Region. In addition, following a recent agreement with Vontobel, private customers of the latter in hong kong will receive a transfer offer to LGT. UK wealth manager LGT Vestra, which was fully acquired by LGT in 2020, was renamed LGT Wealth Management in the first half, and Crestone will now operate as LGT Crestone. In the important private banking market of GermanyLGT intends to establish a presence in two to three sites by the end of 2023 in order to best support customers in the country.

In the area of ​​sustainability, LGT recently signed the Finance for Biodiversity Pledge as well as the Principles for Responsible Investment (PRI) initiative and is also now a member of the Institutional Investors Group on Climate Change (IIGCC). In order to evolve its sustainable investment strategy, LGT signed a service agreement with BMO Global Asset Management for the management, thus becoming one of the first private banks in Europe to take this coordinated approach to business engagement. In addition, LGT recently announced that it will join South Pole’s NextGen CDR facility as a founding buyer, alongside other leading companies, to significantly improve technologies to remove carbon from the atmosphere and expand the market for high quality carbon capture.

As part of the separation of LGT Private Banking, LGT Capital Partners and Lightrock announced in 2020, Lightrock was legally separated from LGT Group in 2021. The group holding structure will remain in place for LGT Private Banking and LGT Capital Partners until at new order. The targeted principle of independence has however been implemented with the newly created management structures, and their operational separation has been completed. Companies set their own strategic direction and can now address their respective markets and target groups even more purposefully and effectively.

HSH the Prince max of und zu LiechtensteinPresident of LGT: “LGT’s results for the first half of 2022 demonstrate the strength and breadth of our business with our international customers, and thanks to our highly engaged employees, we are also well equipped to face the today’s changing environment. In an uncertain world and with unpredictable markets, our priority is to put LGT’s global investment and – in particular – our sustainability expertise at the service of our customers, as recent geopolitical and economic developments underscore the importance of durable solutions.”

LGT in a nutshell

LGT is a leading international private banking and asset management group, wholly owned by the princely family of Liechtenstein for over 90 years. Like a June 30, 2022LGT managed assets of CHF 284.7 billion ($297.4 billion) for high net worth individuals and institutional clients. LGT employs more than 4,500 people who work at more than 20 sites in Europe, AsiaAmericas, Australia and the Middle East. www.lgt.com

your contact

Christof Buri

Group Marketing & Communication Manager

Such. +423 235 23 03

lgt.media@lgt.com

Key figures according to 30.06.2022

Half-year figures are unaudited.

SOURCE LGT