Liechtenstein-based LGT reported its assets under management reached a record as it attracted new money. Its interest income doubled.
LGT saw its Group profit rise 3 percent to 223.6 million Swiss francs in the first half of the year, as it saw strong new money inflows and a doubling of interest income to 275.9 million francs reflecting the positive interest rate environment and higher customer deposits, according to results published Wednesday.
Personnel expenses were 687 million francs in the first half, up 18 percent year-on-year, on organic headcount growth and the integration of LGT Crestone and LGT Wealth India, as well as higher accruals for long-term performance-related compensation
Record Assets Under Management
For the first time in its history, LGT's assets under management exceeded 300 billion francs and stood at 305.8 billion at the end of June, a 6 percent increase from the end of last year, driven by «strong net asset inflows and positive market performance, partially offset by negative foreign currency effects.»
Net new money was 15.8 billion in the first half of the year, which includes 6.7 billion francs from a large pension fund that gave LGT a mandate to provide private equity and infrastructure-related management and advisory services. Adjusting for the one-time effect, net new asset growth was an annualized 9 percent of assets under management.
New Offices
LGT also provided an update on its new offices, particularly in Germany where it plans to open new locations in Germany's most populous state of North Rhine-Westphalia. It said the private banking office it opened in Hamburg in October is «developing successfully.» It said the same of its offices in Luxembourg and San Francisco which opened earlier this year.
In March, LGT announced the acquisition of abrdn's wealth management business and expects the deal to be completed in the third quarter of this year.
Digital Efforts
LGT is focusing on developing modern digital products and services across a wide range of channels. To that end, it's investing 200 million francs over the next five years. The LGT Incubator and Accelerator Center recently opened in Barcelona will support LGT over the coming years in its further digital evolution, according to the statement.
In summing up the results, LGT chairman Prince Max von und zu Liechtenstein said «The results for the first half of 2023 once again highlight LGT’s established presence in its international markets and its excellent local teams. We are confident that with the plans for further expansion that we have implemented and announced in recent months, and by building on our strong investment expertise in ESG in particular, we will continue on our profitable growth path.»
