Liechtenstein-based LGT’s profit in the first six months shrunk compared to the previous year, mainly due to lower interest income.

In the first half of 2024, LGT’s group profit fell 22 percent year-on-year to 174.6 million Swiss francs ($202.1 million), according to the bank’s financial results. It attributed the drop to the «exceptionally strong result for the prior-year period, as the interest rate environment normalized and growth-related investments in personnel and digitalization continued».

While net interest income fell 30 percent to 192.3 million francs, total operating income still increased 4 percent to 1.28 billion francs, driven by a 15 percent rise in services income to 852.4 million francs and a 10 percent rise in trading income and other operating income rose to 239.1 million francs.

The cost-income ratio increased to 77.3 percent, compared with 74.2 percent at the end of 2023, as personnel expenses grew 12 percent to 767.2 million francs from continued staff growth in client advisory and products, services and technology. Business and office expenses also increased 11 percent to 224.5 million francs due to higher IT costs for digitalization projects.

AUM Growth

Assets under management reached 356 billion francs, up 13 percent compared to end-2023, with 8 billion francs of net asset inflows from private banking and asset management alongside positive market performance and foreign currency effects.

«LGT achieved a good result in the first half of the year and continued to invest in areas we believe will be very relevant in the future. Our growth is testimony to the high level of trust placed in us,» commented H.S.H. Prince Max von und zu Liechtenstein, chairman of LGT. 

«Today’s markets are fraught with uncertainty, and investors and private individuals face a whole range of unknowns, from possible global political upheavals to the fundamental effects of climate change. These realities make it all the more important for us to use our long-standing wealth management expertise and the stability of our family business for the benefit of our clients.»