LGT, the bank of Liechtenstein's principal family, had a lower first-half profit than last year as hirings increased costs. On the plus side, the bank recorded an inflow of assets, thanks also to the new employees.
LGT had a first-half profit of 124.4 million Swiss francs, 5 percent less than in the same period a year earlier, the bank said in a statement today. Revenues rose however by 5 percent, to 576.3 million.
The main factor behind the decline in profitability at the Vaduz-based bank were higher costs. New staff hires in Asia and asset management led to a 5 percent increase in personnel costs, totaling 315.3 million in the first half. Business and office expenses rose 23 percent to 101.7 million, reflecting the bank's expansionary strategy.
Strong Asset Inflow
LGT has already seen some rewards for its strategy, with 4.4 billion francs in net asset inflows. Despite negative currency effects, assets under management rose 8 percent to 143.4 billion compared with the end of 2015. Part of the increase are 8 billion francs from LGT Vestra, the U.K.-based wealth management boutique.
Confident Outlook
The bank's CEO, H.S.H. Prince Max von und zu Liechtenstein, is confident that the institute will achieve a solid result for the full year. «We will continue to pursue our strategic direction and concentrate fully on providing added value and stability for our clients thanks to the comprehensive expertise of our broad-based private banking and asset management business.»
