Higher client assets and a favourable interest rate environment contributed significantly to LGT’s H1 2023 performance.
Net asset inflows remained very strong in the first half of 2023, totalling CHF15.8bn.
LGT in H1 2023
The group’s overall profit from operations climbed 17% to CHF1234.5m in the first half of 2023.
Due to a positive interest rate environment and increased customer deposits, net interest revenue more than doubled to CHF275.9m.
Trading and other operational revenue increased 69% to CHF217.1m, owing mostly to increased bond portfolio values and foreign currency transactions.
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By GlobalDataPersonnel expenses climbed 18% year on year in the first half of 2023, highlighting organic personnel growth and the integration of LGT Crestone and LGT Wealth India, as well as bigger advances for long-term performance-related remuneration.
Business and office expenses rose by 27% to CHF202.0m, attributable to higher digitisation project costs and higher business travel-related expenses.
Total operational expenses grew by 20% to CHF889.0m.
In contrast to the cost-income ratio of 72.9% at the end of December 2022, it was 72.0% as of the end of June 2023.
For the first half of 2023, the group’s profit climbed 3% year over year to CHF223.6m.
Net assets
LGT generated very significant net asset inflows of CHF15.8bn in the first half of 2023.
This includes an influx of almost CHF6.7bn from a significant pension fund client who contracted LGT Capital Partners to offer management and advisory services for private equity and infrastructure-related investments.
Annualised net new asset growth for the second half of 2023 was almost 9% of assets under management.
With this outcome, to which all areas and locations contributed, LGT maintained its prior periods’ high net new asset growth during the first half of 2023.
Assets under management scaled to CHF305.8bn as of 30 June 2023, surpassing the CHF300bn milestone for the first time in LGT’s history.
This represents a 6% rise in assets under management over year-end 2022, driven by high net asset inflows and favourable market performance.
LGT is confident in its ability to achieve profitable growth in 2023 by using its wealth advice and investment experience.
