LGT has completed the final stage of its acquisition of LGT Vestra. It achieved this by purchasing the remaining equity held by the executive partners in the firm.
The partnership between LGT Vestra and LGT has allowed the former to access specialist capabilities and the product and service offering of the entire group.
As of 31 August 2020, LGT Vestra managed assets amounting to £15.7bn ($20.3bn) across approximately 14, 000 clients compared to £5.6bn at the time of the acquisition in 2016.
The firm has 362 staff and offices in London, Bristol and Jersey. With the purchase of the remaining equity held by the executive partners in the firm, LGT Vestra is now fully owned by LGT.
H.S.H. Prince Max von und zu Liechtenstein, CEO of LGT, said: “Our partnership with LGT Vestra has been extremely successful for the past five years and has also generated considerable added value for clients. We look forward to working with the existing management team to further expand this great company.”
David Scott, founder and chairman of LGT Vestra, added: “We are fortunate to have found a reliable partner in LGT in 2016. There was an immediate recognition that we had a similar approach to dealing with clients. We have been able to continue to focus on a long-term approach, putting our clients first and doing what is right for them. The private owner managed approach was and remains crucial for the success of our business.”
The private bank’s group profit in the first six months of 2020 stood at CHF190.7m ($210.9m), a 23% surge from CHF155.6m a year ago.
At the end of 2019, the firm’s group profit was CHF308.1m.
Total operating income rose 6% to CHF900m from CHF848.2m, driven by cost management measures.
Income from services increased 7% to CHF572.3m from CHF536.1m.
This is said to be due to higher brokerage income amid market volatility and a larger asset base.
An increase in client currency transactions resulted in a year-on-year rise of 7% in income from trading activities and other operating income to CHF185.3m.
Net interest income in H1 2020 was CHF142.4m, up 3% from CHF138.7m in H1 2019.