The private banking and asset management group owned by the Princely House of Liechtenstein grew its operating income by 6 percent in the first half of 2020 to 900 million Swiss francs ($990 million).
LGT credited its performance to its «strict» cost-cutting measures amid uncertain economic conditions. Group profit increased 23 percent to 190.7 million francs, according to financial results for the first half of the year, published Thursday.
The bank reported an increase in client activity but a slower pace of investments during this period, with higher brokerage income as a result of volatile market developments and a larger asset base compared to the year before.
Net asset inflows reached 1.6 billion francs in the first half of 2020, down from 5.8 billion francs the year before. This was largely due to deleveraging from clients in the Middle East and Asia towards the end of the first and at the beginning of the second quarter, LGT said. Assets under management stood at 218.7 billion francs as of June 30, down from 227.9 billion francs at the end of 2019.
Positive Outlook
The bank said it expects a good performance for the second half of the year, and a good result for the full year 2020. However, it said it would «remain vigilant with regards to costs,» given the uncertainty of further developments and the economic impact of the pandemic.
«We believe we are well-positioned in any scenario – a return to normality or a longer-term economic downturn – to achieve further growth and create value for our clients,» H.S.H. Prince Max von Liechtenstein, CEO of LGT, said.
Restructuring Plans
LGT is also preparing for a new organizational and management structures that will come into force on January 1, 2021, when the group's three business units – LGT Private Banking, LGT Capital Partners and Lightstone – will operate as independent pure-play companies.
