LGT bolstered profits and assets last year, not least through a string of acquisitions. The bank of Liechtenstein’s princely family now plans to make substantial investments in its business.

LGT's net income rose 23 percent on the year to 283.4 million Swiss francs last year, the company said in a statement on Monday. The Vaduz-based bank said that the higher profit reflected the higher amount of assets it had under management as well as favorable markets.

LGT had 201.8 billion francs in assets under management at the end of 2017, 33 percent more than year-ago. Organic growth of assets amounted to 12 percent, while the acquisitions of ABN Amro in Asia, LGT Vestra in the U.K. and European Capital Fund Management contributed with the rest.

More than a quarter of the bank’s assets under management are attributable to its asset management division, which the bank said is invested mainly in alternative asset classes and multi-asset products.

Costs Rise With Profits

Total operating income climbed 27 percent to 1.53 billion. As a result of the increased asset base, higher levels of client activity in a good stock market environment as well as good investment performance by LGT Capital Partners, income from services rose 22 percent to 1 billion.

Net interest and similar income increased a third to 228.4 million. Income from trading activities and other operating income surged 41 percent to 295.6 million. The results also reflect a one-off contribution from the sale of a private equity stake in the first half of the year.

Staff spending rose 28 percent to 858.4 million in 2017. This reflects an increase in staff levels of more than 550 employees over the course of the year, of which about 240 were attributable to organic growth. The bank has a headcount of 3,188. The cost-income ratio was steady at 74 percent.

Investments Planned

«The healthy profitability of both business segments in combination with LGT’s strong capitalization will allow for substantial future investments,» the company said, giving an outlook on the remainder of this year.

LGT will invest in the so-called client experience, expansion of distribution, broadening and deepening of investment competence as well as digitization.