The Liechtenstein private bank's profits edged lower amid sharply higher spending to add bankers. A healthy rate of fresh money lends optimism to the hiring spree.
Vaduz-based LGT's net profit for the first half fell more than five percent to 180.6 million Swiss francs ($198 million), it said in a statement on Thursday. While its revenue climbed close to six percent on the year, this was eaten up by almost 12 percent more spending, primarily on people.
It also posted 14.1 billion francs in net new money, which translates to nearly six percent growth against its existing assets at the end of last year – a healthy rate in the wealth management industry. Total assets rose 275 billion francs, from 240.1 billion francs at the end of 2020.
Buying, Hiring
LGT, which is controlled by the Liechtenstein monarchy, added 72 staff during the first half. It also said it invested in strengthening its advisory services and investment processes and expand its digital platforms.
«LGT is confident that it will remain on its sustainable growth path in the second half of 2021,» it said. It just closed the purchase of UBS Austrian private bank last month, a deal through which it added 176 employees last year.
