LGT, the private banking and asset management group owned by Princely Family of Liechtenstein, has posted group profit of CHF230m for the year ended 31 December 2016, an increase of 9% compared to CHF211m a year ago.
Total operating income increased 5% year-on-year to CHF1.2bn, while total operating expenses were CHF895.4m, a rise of 9% compared to CHF818.8m a year ago.
The group's net interest and similar income surged 50% to CHF172.3m from CHF115.3m a year ago.
Income from services rose 5% to CHF823.9m from CHF783.7m due to the larger asset base, while income from trading activities and other operating income slumped 16% year-on-year to CHF210m.
Personnel expenses increased 6% to CHF670.5m from CHF631.9m in the previous year, reflecting higher staff levels and performance-related compensation. Business and office expenses jumped 20% to CHF224.9m from CHF186.9m a year earlier, mainly driven by further business expansion.
The group's assets under management at the end of 31 December were CHF152.1bn, an 18% rise compared to CHF129.3bn in 2015. This includes CHF8bn in assets under management from the acquisition of a majority stake in LGT Vestra in the first half of 2016. The group’s net asset inflows totalled CHF11.7bn in 2016.
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As at 31 December 2016, LGT Group's tier 1 ratio stood at 20.2%, compared to 20.1% a year ago.
LGT CEO Prince Max von und zu Liechtenstein said: “The good result achieved in the 2016 financial year, and the continued strong new asset growth in particular, are evidence of the high level of trust that our clients place in us. Honoring this trust by providing our clients with investment expertise and a stable platform in this challenging environment is our number one priority. We want to continue on the path we have set out by strengthening our client offering further.”