Liechtensteinische Landesbank broke two records in the first half, but nevertheless was scarred by turbulence for wealth managers.
The Vaduz-based private bank notched up two record-breaking feats in the first six months of 2019: assets under management reached 72.6 billion Swiss francs ($74.2 billion) while loans increased to 13 billion francs, LLB said in a statement on Tuesday.
Assets under management at LLB, which is active in Liechtenstein, Switzerland and Austria, increased 7.8 percent, while loans added 100 million francs, according to the Vaduz-based company.
Acquisitions Are Paying Off
LLB also posted an increased in net income, which rose to 61.1 million franc in the first six months from 45.8 million in the same period a year ago.
The bank attributed growth to two acquisitions completed in recent years. LLB in 2017 announced the acquisition of Semper Constantia Privatbank based in Austria and last year it added LB (Swiss) Investment. The purchase of Sempter Constantia helped the bank reached a new level in neighboring Austria.
Challenging Environment
Low interest rates however also weighed on earnings in the first half, as net interest income dropped despite the growth of loans and the low refinancing costs.
Clients also showed a degree of restraint in making investments. The income from trading with forex and precious metals dropped 7.6 percent, the bank reported.
