LGT, an international private banking and asset management group owned by the Princely Family of Liechtenstein, has just announced its financial results for the first half of 2023.

LGT has reported strong net asset inflows and higher net income in the first half of 2023.

LGT said it achieved a group profit of SFr223.6 million ($254 million) in the first half of 2023, mainly due to higher client assets and a favourable interest rate environment. Net asset inflows continued to be strong in the first half of 2023, amounting to SFr15.8 billion. Assets under management increased to SFr305.8 billion, for the first time exceeding the SFr300 billion mark, the firm continued.

In the first half of 2023, global markets were characterised by persistently high inflation rates and an uncertain economic outlook, which in part resulted in subdued client activity, while demand for advisory services remained high, the firm added. In this environment, LGT said it continued to expand its client business and increase profitability, benefiting from a higher asset base, rising interest rate levels and the bank’s stronger international presence. 

The group’s total operating income increased 17 per cent to SFr1234.5 million in the first half of 2023. Income from services was SFr741.5 million, down 5 per cent year-on-year due to lower brokerage and performance fees. Both the Australian wealth manager LGT Crestone, which has been reflected in LGT’s results since 12 May 2022, and LGT Wealth India, which was integrated in the second half of 2022, made positive contributions to the income from services result, the firm said.

Outlook 
LGT said it is confident that it will continue to leverage its wealth advisory and investment expertise to achieve profitable growth for the full year 2023. The bank plans to build on its international network of locations in Europe, Asia, the Americas, Australia and the Middle East, as well as its range of investment solutions with a focus on sustainable offerings. In this context, LGT was recently recognised at WealthBriefing’s Wealth for Good Awards 2023 as the Best Bank for Sustainability, Best Bank for ESG Thought Leadership and for its Best Sustainability Offering (Investments).  

As part of its long-term growth strategy, LGT said it will continue to strengthen its international platforms. The new private banking office in Hamburg, Germany, which opened in October 2022, is developing well. As previously announced, LGT said it will be expanding its presence in Germany in January 2024 with new locations in North Rhine-Westphalia. In the UK, LGT expects to complete the acquisition of the abrdn wealth management business (announced in March 2023) in the third quarter of 2023. LGT Capital Partners also increased its international presence in the first half of 2023 by opening a new office in The Hague in the Netherlands – its fifteenth worldwide. The offices in Luxembourg and San Francisco, which opened at the beginning of the year, are also doing well, the firm continued. 

LGT said it is developing modern digital products and services to enhance the client experience across a wide range of channels, and it is investing SFr200 million over the next five years to this end. The LGT Incubator and Accelerator Centre, which was recently opened in Barcelona, will support LGT over the coming years in its continuing digital evolution.  

“The results for the first half of 2023 once again highlight LGT’s established presence in its international markets and its excellent local teams. We are confident that with the plans for further expansion that we have implemented and announced in recent months, and by building on our strong investment expertise in ESG in particular, we will continue on our profitable growth path,” HSH Prince Max von und zu Liechtenstein, chairman LGT, said.