He has been CEO of Liechtenstein’s largest financial institution since the beginning of the year. In an interview with finews.com, Olivier de Perregaux reveals what changes the new role brings with it and where he detects an industry-wide change of thinking.

Olivier de Perregaux, you started your new position on 1 January 2021. Have you settled into the role yet?

Yes, I’ve gotten off to a good start. Although I have to say that the fact that the new management team and I had already worked at LGT for a long time was a big help. We have known each other and LGT for a very long time. That makes a lot of things easier.

LGT is currently realigning itself: in the future, the private banking, asset management and impact investing business units will operate as stand-alone companies. What will change as a result?

Virtually nothing will change for LGT Private Banking and its clients. However, the new structure will give the three independent companies greater autonomy and agility. As LGT Private Banking, we can focus even more on the private client business, while our colleagues at LGT Capital Partners will concentrate on asset management for institutional clients and our colleagues at Lightrock on impact investing.

«Both Europe and Asia remain very interesting for us»

This will enable us to even more specifically address the needs of clients in our respective target markets. The long-standing, successful relationship and uncomplicated cooperation between the three companies will remain unchanged.

Are you on the lookout for further acquisitions, or are these enough for the time being?

Acquisitions are an important part of our growth strategy. We have a strong network in the market and are constantly assessing potential acquisitions. But we are not under any pressure to take action. The culture, strategy, quality and price have to be right.

Where does LGT want to grow primarily in the future? Many European banks are currently trying their luck in Asia, where you have been active since the 1990s.

Both Europe and Asia remain very interesting for us. We have grown very well in Asia and expect economic growth to remain strong there in the coming years.

«If you want to enter new markets, you have to do a very large amount of preliminary work»

As the second-largest pure-play private bank in Asia, we want to further expand our market share there. But we also have further growth potential in Europe and the U.K. And we are becoming increasingly well-known, which helps us when it comes to client acquisition.

Is entering completely new markets also an option?

I wouldn’t rule it out per se, but that is something that must be undertaken very carefully. If you want to enter new markets, you have to do a very large amount of preliminary work. Having said that, LGT Vestra and our entry into the U.K. market prove this is something we are capable of.

You recently presented very good results for the last financial year. Tell us about your experience during a year that was characterized by coronavirus.

It was a bit of a roller coaster – both from the clients’ point of view and internally from the employees’ point of view. We didn’t know what the consequences would be when the pandemic began. Today, we can say that remote working operations have proven viable and, apart from a small dip in the spring, we had a good year. The developments in financial markets certainly helped.

«We set the course for our growth strategy around two decades ago»

But we also performed very well in our core business and achieved strong net asset inflow growth in the second half of the year. In some cases, the technological possibilities actually enabled us to deepen our client relationships. However, we hope, of course, that more normal times will soon return so that we can re-establish direct contact with our clients and also re-build personal interaction within the bank.

How long will the effects of the pandemic be felt?

The further course of the COVID-19 pandemic is still unclear, and it remains difficult to predict what its short-, medium- and long-term economic consequences will be. Government debt has further increased as a result of the massive support packages.

It is therefore more important today than ever to act cautiously and take a long-term view. But we are very well positioned, even in this uncertain situation, so LGT is nevertheless optimistic about the future.

Will the strategy be adjusted as a result?

One of our great strengths is our long-term approach, and that also applies to our strategy. We set the course for our growth strategy around two decades ago. Most of the factors considered at that time are still relevant today. Our internationalization has been successful, and we are now very well positioned geographically.

«I still see potential in the area of digitalization»

Over the next few years, we will be looking to make even better use of our existing platforms and to make targeted additions to them. On the product side, we will step up the expansion of our range of sustainable investment solutions. We want to further expand our leading position in this area.

H.S.H. Prince Philipp retired at the beginning of the year, and H.S.H. Prince Max took over his position as Chairman of the Foundation Board. How does this affect LGT?

The Princely Family will continue to play an important role at LGT. H.S.H. Prince Philipp will remain available to LGT as Honorary Chairman. As Chairman of the Foundation Board, H.S.H. Prince Max has ultimate strategic responsibility. And with H.S.H. Prince Hubertus, another member of the Princely Family is now represented on the Foundation Board.

Our owner family will continue to be very present and support us in the future. LGT’s values and principles have been and continue to be shaped by the Princely Family; they are our foundation and the key to our success.

What are your priorities?

The key areas of focus will remain the same, but we will try to place more emphasis on certain aspects. For example, I still see potential in the area of digitalization: this is not a purely technological challenge to be solved at the IT level. Instead, we are asking ourselves how digitalization can best benefit our clients and us in terms of working together even better.

«The market readiness of applications based on blockchain technology is simply still too low»

Having said that, personal interaction will remain at the heart of our business model in the future – technology will complement the existing communication channels. In addition, digitalization will help us to further standardize and simplify our internal processes.

Blockchain solutions are also part of the digitalization trend. However, LGT is still very cautious in this area.

With the exception of cryptocurrencies, the market readiness of applications based on blockchain technology is simply still too low. But we are closely monitoring the developments and are constantly assessing new possibilities for applying blockchain.

What about cryptocurrencies?

Legal certainty is very important to us when it comes to cryptocurrencies. Now that regulations are being developed in other countries, something Liechtenstein has already done, we are looking at how we can also hold cryptocurrencies in custody or process purchases and sales thereof in the future.

In December, it was announced that you are taking over UBS’s wealth management business in Austria. What were the reasons for this acquisition?

I’d like to preface my answer with some historical context: our presence in Austria is a success story. We started from scratch there in 2013 and now manage 8 billion euros in assets. With the acquisition of UBS’s wealth management business in Austria, we are adding another 4 billion euro, in addition to very competent and experienced employees.

«The bank in Liechtenstein started operations in May 1921»

The business almost exclusively comprises clients domiciled in Austria and is, therefore, a perfect fit with our strategy. This acquisition will make us the leading private bank in Austria.

Last year, you achieved another milestone in your growth strategy – in the U.K.

Yes, we completed the final stage of our acquisition of LGT Vestra and bought the remaining equity that was previously still held by the executive partners. LGT Vestra has also developed extremely well. The wealth manager was founded in 2007, we acquired a majority stake in March 2016, and in the last four years alone, LGT Vestra’s assets under management have almost quadrupled.

Now on to a very different topic: this year is a very special one for your bank; you are celebrating your 100th anniversary What have you planned for the occasion?

Yes, the bank in Liechtenstein started operations in May 1921. And LGT has been a unique success story ever since. To celebrate this special anniversary, we will be organizing a big public celebration in September – if the pandemic situation permits. It will include live concerts and other activities for young and old in both Vaduz and Bendern.

After completing university, Olivier de Perregaux gained initial professional experience at a management consulting firm in Zurich and New York before joining LGT Group as Chief Financial Officer in 1999. On 1 January 2021, the Swiss national assumed the role of CEO LGT Private Banking from H.S.H. Prince Max von und zu Liechtenstein.