Vaduz-headquartered LGT posted an uptick in revenues and net new assets growth despite a challenging environment that includes low interest rates and a pandemic.
LGT saw operating income climb 2 percent to 1.85 billion Swiss francs ($2 billion), according to its annual results, driven by growth from brokerage and portfolio management which were offset by lower performance-based revenues.
Overall, the LGT's profits fell 5 percent to 291.5 million Swiss francs which the bank attributes to the effects of a one-off acquisition of U.K.-based wealth manager LGT Vestra. Excluding the acquisition, LGT recorded a profit increase of 14 percent.
Since the announced acquisition of LGT Vestra in June 2016, the wealth manager more than doubled its assets under management from 8 billion Swiss francs to 21 billion Swiss francs, as of the end of 2020.
AUM: All-Time High
The Liechtenstein-based bank posted net new asset growth of 5 percent to 11.6 billion Swiss francs with strong acceleration in the first half of 2020.
Assets under management increased 6 percent year-on-year to reach an all-time high of 240.7 billion Swiss francs which were supported by positive market and investment performance but offset by negative currency effects.
Global Expansion
In addition to the U.K., LGT is also growing elsewhere in both mature and developing markets.
Within Asia, it has seen its Bangkok office grow headcount to 24 since its opening in 2019. And in Europe, LGT signed an agreement with UBS to acquire its Austria-based wealth management business which houses 4 billion Swiss francs in assets under management and around 60 employees.
«We achieved good results and made considerable strategic progress in 2020, notwithstanding the many challenges that arose,» said LGT chairman H.S.H. Prince Max von und zu Liechtenstein. «Going forward, sustainability will continue to be a priority across our advisory services and investment solutions, and we intend to remain a pioneer in this area in 2021.»
