Liechtenstein-based LGT Bank boosted profits and saw strong growth in new money from clients.

Despite headwinds from geopolitical uncertainties and turbulent financial markets, LGT reported a 19 percent increase in group profit to 420.8 million Swiss francs ($453.8 billion), according to a statement Monday.

Clients entrusted a further 17.1 billion francs of net new client money, corresponding to organic growth of six percent. Reflected in those results are the acquisitions of Australian wealth manager Crestone and the Indian wealth management business of Validus Wealth since 12 May 2022 and 19 August 2022, respectively. They accounted for the bulk of the new money, with 16.6 billion francs, according to LGT.

Defending Managed Asset Level

Unlike many other wealth managers that saw a decline in assets under management, LGT saw theirs increase marginally to 287.2 billion last year from 285.8 billion the year before. 

Services income remained stable at 1.59 billion francs last year despite subdued client activity, with brokerage and performance fees remaining at high levels, although slightly below the strong result in 2021. Net interest income rebounded to 390 million francs following the end of the protracted negative interest rate environment, also reflecting significantly higher customer deposits.

Income from trading activities and other operating income picked up in the second half of the year reaching 328.7 million francs for the full year, five percent lower than a year before. Overall, total operating income increased eight percent to 2.31 billion francs.

Headcount Growth

LGT had 19 percent more employees last year compared to 2021, increasing to 4,913 from 4,114, according to the statement. The Group aims to build on its professional teams of relationship managers and investment specialists in Europe, Asia, the Americas, Australia, and the Middle East.

LGT's private banking business has around 4,150 employees and currently operates in 14 countries across Europe, the Middle East, Asia, and Australia with 25 locations and 6 booking centers.

Capital Partners, with over 700 employees, has approximately $85 billion in assets under management, primarily split between private market investments, multi-assets, and liquid alternative investments.