LGT, the private banking and asset management group owned by Princely Family of Liechtenstein, has reported group profit of CHF314.1m for the year ended 31 December 2018.
The figure represents an 11% increase from the previous year profit of CHF283.4m.
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This is also LGT’s first full-year result, where revenues and expenses of ABN Amro’s private banking operations in Asia and the Middle East and European Capital Fund Management were included.
The acquisitions of the ABN Amro and European Capital businesses were announced in 2016 and 2017, respectively.
Total operating income at LGT was CHF1.68bn in 2018, up 9% from CHF1.53bn a year ago.
The bank attributed the rise to organic growth and acquisitions.
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By GlobalDataNet interest income, including credit losses, surged 20% to CHF277.8m on a year-on-year basis.
The rise was said to be driven by the expanded business in Asia.
Income from services increased 8% to CHF1.09bn from CHF1bn.
Income from trading activities and other operating income rose 3% to CHF307.8m from CHF299.2m.
Total operating expenses were CHF1.24bn in 2018, up 9% from CHF1.13bn last year.
Personnel expenses increased 8% to CHF924m from CHF858.4m while business and office expenses increased 15% year-on-year to CHF316.4m.
LGT’s assets under management totalled CHF198.2bn as at 31 December 2018, down 2% from CHF201.8bn in 2017.
Net asset inflows during the year were CHF6.8bn. Inflows were said to be particularly high in the private banking segment.
The group’s tier 1 capital ratio at the end of December 2018 stood at 17.6%.
LGT CEO Prince Max von und zu Liechtenstein said: “After the acquisitions made in the last few years and the implementation of many infrastructure- and regulation-related projects, 2018 was a year of consolidation for us.
“We increased our focus on operational improvements, strategic matters and on further developing our investment expertise in order to optimally prepare for the changing environment. Despite the challenging market conditions, we continued to grow and further increased profitability.”
