Organic growth and the successful integration of the acquisition of ABN Amro's private banking business have underpinned solid half year results for LGT.
Robust organic growth and the successful integration of recent acquisitions at LGT Group, saw total operating income increase 23 percent to 707.9 million Swiss francs in the first half of 2017, when compared to the same period last year.
Income from services contributed 458.8 million Swiss francs to this result, which corresponds to a rise of 20 percent and is attributable in particular to the larger asset base and increased client activity.
Cost Income Ratio Eases
Total operating expenses rose 24 percent to 517.5 million Swiss francs compared to the same period last year, which is attributable to the organic and acquisitions-related expansion of the business.
Understandably personnel expenses increased at LGT by 25 percent to 393.4 million Swiss francs due to the expanded headcount and higher accruals for performance-related payments
The cost-income ratio however improved from 74.2 percent as at 31 December 2016 to 73.1 percent as at 30 June 2017.
Steady Asset Inflows
In the first half of 2017, LGT reported strong net asset inflows amounting to 9.6 billion Swiss francs, whereof 2.6 billion Swiss francs resulted from the closing of one of LGT Capital Partners’ private equity funds.
Assets under management rose by 28.9 billion Swiss francs or 19 percent to 181.0 billion Swiss francs compared to year-end 2016.
This figure includes 18.2 billion Swiss francs in assets under management from the acquisition of the ABN AMRO private banking business.
Asia and Middle East Growth Engines
«We are extremely pleased with the first half of 2017. We continued on our profitable growth path, once again attracted significant net asset inflows and successfully integrated the strategically important acquisition of ABN AMRO’s private banking business in Asia and the Middle East into our existing structures,» said Prince Max von Liechtenstein, CEO of LGT.
The results of the private banking business in Asia and the Middle East acquired from ABN AMRO at the end of April 2017 have been reflected in LGT’s financial statements starting from May 2017.
