Liechtenstein’s LGT bank increased profit by more than a tenth last year, boosted by the incorporation of two acquisitions in 2017. But business wasn’t so smooth across the board.
LGT posted a profit of 314.1 million Swiss francs ($313.8 million) for 2018, up from 283.4 million a year earlier, according to a statement released on Monday. It was the first year that the private banking business purchased from ABN Amro as well as the business of European Capital Fund Management, a private debt manager, was included.
As a result of the increased asset base, income from services rose 8 percent to 1.09 billion francs. Net interest income increased by a fifth to 277.8 million. The expanded business in Asia made a strong contribution to this result. LGT now aims to make greater use of economies of scale and tap into the possibilities presented through digitization.
Adverse Market Conditions
Operating costs also rose due to higher spending on personnel. The bank’s cost-income-ratio was an unchanged 74 percent.
Net new assets rose 3 percent to 6.8 billion francs, a lower growth rate compared with 2017. Assets under management decreased 2 percent to 198.2 billion francs due to adverse market conditions.
In private markets, the bank had high new money inflows but also struggled with the volatility on the markets.
