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LGT, a Liechtenstein-based financial institution, has reported record-breaking assets under management as it attracted new investments. The company’s interest income has also doubled, contributing to its strong financial performance.
In the first half of the year, LGT’s Group profit increased by 3 percent to 223.6 million Swiss francs ($254.7 million). This growth can be attributed to significant inflows of new money and a doubling of interest income to 275.9 million francs. The positive interest rate environment and higher customer deposits have played a role in this achievement.
Despite the positive financial results, LGT experienced an 18 percent increase in personnel expenses, reaching 687 million francs. This rise can be attributed to organic headcount growth, the integration of LGT Crestone and LGT Wealth India, and higher accruals for long-term performance-related compensation.
LGT’s assets under management have surpassed 300 billion francs for the first time in its history, reaching 305.8 billion francs by the end of June. This represents a 6 percent increase from the previous year-end. The growth can be attributed to strong net asset inflows and positive market performance, partially offset by negative foreign currency effects.
In the first half of the year, LGT attracted net new money amounting to 15.8 billion francs. This figure includes a significant contribution of 6.7 billion francs from a large pension fund that entrusted LGT with the management and advisory services related to private equity and infrastructure. Adjusting for this one-time effect, the net new asset growth was an annualized 9 percent of the assets under management.
LGT has also expanded its presence by opening new offices, particularly in Germany. The company plans to establish new locations in Germany’s most populous state, North Rhine-Westphalia. The private banking office opened in Hamburg in October has been successful, as have the offices in Luxembourg and San Francisco, which opened earlier this year.
Recognizing the importance of digitalization, LGT is investing 200 million francs over the next five years to develop modern digital products and services across various channels. The recently opened LGT Incubator and Accelerator Center in Barcelona will support the company’s digital evolution in the coming years.
In conclusion, LGT’s strong financial performance in the first half of 2023 reflects its established presence in international markets and the dedication of its excellent local teams. The company is confident in its profitable growth path, driven by expansion plans and its expertise in environmental, social, and governance (ESG) investments.