[LGT Wealth Management Trust Co., Ltd.] LGT continues to achieve solid growth and strong net asset inflow in the first half of 2024 *LGT Wealth Management Trust Co., Ltd.*
Press release: August 19, 2024
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LGT continues to achieve solid growth and strong net inflows in the first half of 2024
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LGT, the international private banking asset management group owned by the Duke of Liechtenstein, continues its international growth path and expects to see growth in the first half of 2024, mainly driven by service revenue (+15%). , achieved strong results. Group profits fell by 22% to CHF 174.6 million compared to the very strong performance of the same period last year. This was due to the normalization of the interest rate environment and continued growth investments in human resources and digitalisation. Net asset inflows in the first half of 2024 remained strong at CHF 8 billion (up 5% annually). At the end of the first half of 2024, assets under management amounted to CHF 356 billion, an increase of 13% compared to the end of 2023. We are confident that LGT will be able to achieve further growth with profitability. *
Global financial markets generally performed well in the first half of 2024, despite lingering geopolitical and economic uncertainties. In this environment, LGT was able to further expand its customer business and benefit from the asset base it has steadily built over the past few years. In line with its international growth strategy, LGT continued to invest in customer services, advisory services and technology platforms. Sustainable investing is one of LGT’s key focus areas, and as a pioneer, LGT is continually expanding its expertise and product offering. The results of the UK wealth management business acquired from Aberdeen will be reflected in LGT’s results from September 2023.
The Group’s total operating revenue for the first half of 2024 increased by 4% year-on-year to CHF 1.28 billion. Core services revenue increased by 15% to CHF 852.4 million, driven by higher revenues from brokerage business and investment and management fees. While 2023 saw a significant positive effect from interest rate increases, net interest income decreased by 30% to CHF 192.3 million in the first half of 2024 as the interest rate environment normalized. Trading and other operating income increased by 10% to CHF 239.1 million, reflecting interest and valuation gains on the fixed income portfolio, increased client activity and an expanded asset base.
Personnel expenses increased 12% due to continued staff growth in client advisory, products, services, and technology, as well as lower long-term performance-related accrued compensation compared to the same period last year.
This amounted to CHF 767.2 million. Operating and office expenses increased by 11% to CHF 224.5 million, reflecting higher IT costs, particularly for digitalization projects. Depreciation and
amortization expenses decreased by 9% to CHF 68 million, primarily reflecting lower provisions.
The cost-income ratio as of the end of June 2024 rose to 77.3% from 74.2% as of the end of 2023. Group profit for the first half of 2024 decreased by 22% year-on-year to CHF 174.6 million. LGT’s Tier 1 capital ratio as of the end of June 2024 remains at an extremely high level of 19.0%.
*Both net asset inflow and market performance are strong*
Net asset inflows in the first half of 2024 totaled CHF 8 billion, an organic growth rate of 5% per year. Both Private Banking and Asset Management contributed to the strong performance. New net asset inflows decreased compared to the previous year, but as previously announced, this was due to a reactionary decline in the large one-off inflows from LGT Capital Partners’ major pension fund clients in the first half of 2023. It’s a thing. As of June 30, 2024, assets under management amounted to CHF 356 billion, an increase of 13% compared to CHF 316 billion at the end of 2023. This was due to strong market performance and currency effects, as well as net asset inflows. * Future outlook *
LGT believes it can achieve further growth and strengthen its profitability by leveraging its asset base, which has expanded significantly in recent years, and by making more targeted
investments, particularly in digitalisation. LGT is strengthening its global presence in private banking and asset management in key markets around the world. In Germany, recent expansion has been very successful, with offices opening in Hamburg, Frankfurt, Cologne and Düsseldorf.
LGT’s presence in the UK has been strengthened following the integration of Aberdeen’s UK wealth management business, making expansion into high-growth regions outside London more likely. LGT is also steadily expanding its bases in Australia and Asia, including establishing private banking bases in India, Thailand, and Japan.
In order to provide high-quality and efficient services on an international platform, LGT is making further investments in its IT infrastructure as part of its current digitalization efforts. This includes allocating additional resources to develop new digital tools, such as supporting business processes with tools powered by generative AI.
LGT has received numerous awards in the first half of 2024 for its high level of professionalism. This includes winning the Euromoney Global Private Banking Awards 2024’s “World’s Best Family Office Services” and WealthBriefing’s “Wealth
for Good Awards
2024’s Global Awards in the ESG Investment Category and the
Philanthropy Service Offering Category.
H.S.H. Prince Max von und zu, Chairman of the LGT
Liechtenstein)
says: “LGT’s performance in the first half of the year remained strong and we continued to invest in areas that we see as promising. We believe that our growth is a testament to the high level of confidence in us. Today’s markets are full of uncertainty, with investors and individuals facing a variety of unknowns, from the potential for global political change to the severe impacts of climate change. This reality makes it even more important for us to leverage our long-standing wealth management expertise and family business stability for our clients. As we look to the future, we look forward to further developing LGT and providing our customers with the best resources and solutions to preserve and grow their assets.”
*Key financial indicators as of June 30, 2024*
1 LGT’s CET 1 ratio is the same as the Tier 1 capital ratio and the total capital ratio.
Semi-annual financial statements are not subject to audit.
*About LGT*
LGT is an international private banking and asset management group owned by the Duke of Liechtenstein for over 90 years. As of June 30, 2024, LGT had assets under management of CHF 356 billion (USD 396.2 billion) from high-net-worth individuals and financial institutions. (AUM). We have more than 5,800 employees in more than 30 locations across Europe, Asia, the United States, Australia and the Middle East. For details
Please visit www.lgt.com