View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 29, 2012updated 04 Apr 2017 3:35pm

LGT 1H group profits soar 58%

The international private banking and asset management group which saw a decline in profits at the same period last year, due in part, to the Euro zone debit crisis and the economy, said half year profits were attributed both to increased income, and to maintaining disciplined cost management.

By Lizabeth Davis

Profits at LGT Group jumped 58% in the first six months of 2012 to CHF130m ($135.77m) compared with CHF82m group profit earned in June 2011.

The international private banking and asset management group which saw a decline in profits at the same period last year, due in part, to the Euro zone debit crisis and the economy, said half year profits were attributed both to increased income, and to maintaining disciplined cost management.

Net new assets increase 13%

Net asset inflows totalled CHF5.5bn, representing year-on-year growth rate of 13%.

The Liechtenstein-based bank said that assets under management increased 9% or CHF7.8bn to CHF94.7bn from CHF86.9bn the previous year.

LGT also reported a 14% rise in total operating income to CHF466m in the first half of 2012 from CHF408m as at 30 June 2011.

Improvements were also seen in the cost-income ratio, which fell from 75% year-on-year to 65%.

Business restructure plans continue

Following the sale of LGT’s seven-office private bank in September 2011 the bank is planning to continue restructuring its business.

This includes the recent purchase of the insurance-linked investments boutique of Clariden Leu AG and plans to establish an investment solutions subsidiary in Dubai in the second half of the year.

In addition, the bank hopes to open a new branch in Salzburg by the end of the year to help facilitate its strong market position in Austria.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International