LGT posted a 2 percent dip in group profits despite doubling its net asset inflows in 2019.

The private banking and asset management group posted 8 percent income growth to 1.82 billion francs in 2019 due to growth in fee income (1.16 billion francs, 7 percent increase) alongside trading and other income (368.2 million francs, 20 percent increase). 

Still, «higher business volumes and targeted investments» led to a 9 percent increase in costs to 1.35 billion francs fuelled by personal expenses (1.06 billion francs, 15 percent increase) from an 8 percent headcount uptick. This led to group profits of 308.1 million francs in 2019, a 2 perfect dip compared to 2018’s 314.1 million francs. 

Cost-income ratios remain stable at 74.1 perfect, compared to 74 percent in 2018-end.

Net Asset Inflows Double

Whilst profitability was flat, net asset inflows doubled to 13.9 billion francs in 2019 compared with the 2018’s 6.8 billion francs which the bank attributed to all regions and both LGT’s private banking and asset management businesses. Assets under management totaled 227.9 billion francs, a 15 percent year-on-year increase.

«LGT continued on its profitable growth path during the 2019 financial year, which was characterized by economic and political challenges and variable market conditions,» the bank commented in a release. 

Sustainable Investing

The bank added that it would maintain its long-term strategy which includes a focus on offering environmentally and socially sustainable investment solutions. Cited examples of recent developments include the introduction of sustainability ratings for equities, bonds, funds, and ETFs in 2017 and in 2019 the acquisition of a leading Indian impact investment provider Asapada alongside the launch of a sustainability-focused portfolio management solution for clients in Liechtenstein and Switzerland.

«We are convinced that our long-term and comprehensive approach to business is an important prerequisite for sustainable success,» said H.S.H. Prince Max von Liechtenstein, CEO of LGT.

«In this context, we aspire to be a leader when it comes to integrating sustainability criteria into our product range and business activities. Our stable ownership structure enables us to take a cross-generational perspective together with our clients, creating value both today and tomorrow.»