VADUZ, LIECHTENSTEIN - Media OutReach Newswire - 18 March 2025 - LGT, the international Private Banking and Asset Management group owned by the Princely Family of Liechtenstein, reported solid results for 2024, while continuing to implement its strategic growth and investment plan. Assets under management (AuM) increased 16 % to CHF 367.5 billion, of which CHF 11.9 billion is attributable to net asset inflows. LGT continued to invest in the further expansion of its international presence and technology platforms, making significant progress in both areas. Income from services rose 13 %, reflecting strong performance in LGT's core business; total operating income rose 4 %. Group profit totalled CHF 356.2 million, representing a 5 % decrease compared with the strong result for the previous year. LGT is confident in its outlook for 2025, and building on its stable business model, will continue to focus on creating value for its clients through its comprehensive wealth management and asset management offering.

Overall, international financial market performance was positive in 2024 despite ongoing geopolitical and economic uncertainties, and potential shifts in global market conditions remained difficult to forecast. Amid this environment, LGT continued to pursue its long-term growth and investment strategy, focusing on investments to bolster its IT infrastructure and digitalisation efforts, and expanding its market presence in Germany, Australia, India, Japan and Thailand. The integration of the UK wealth management business acquired from abrdn has been successfully completed, and its results have been reflected in LGT's results since September 2023. Furthering the expansion of its private banking business in the Australian market, LGT announced in November 2024 the acquisition of Commonwealth Bank of Australia's Private Advice business, which is expected to close in mid-2025.

The Group's total operating income increased 4 % year-on-year to CHF 2.67 billion. Income from services rose 13 % to CHF1.77 billion due to its higher asset base compared to the prior year and higher income from the brokerage business. After the strong positive effect of the rise in interest rates seen in 2023, net interest income fell 33 % to CHF 347.9 million in the normalised interest rate environment. Income from trading activities and other operating income rose 13 % to CHF 556.6 million, mainly due to increased client activity and the higher asset base.

Personnel expenses rose 9 % to CHF 1.62 billion on the back of organic staff growth and the integration of abrdn, while accruals for long-term performance-related compensation were lower than in the prior year. The 9 % increase in business and office expenses to CHF 465.8 million was due in particular to higher costs for IT and digitalisation projects. Depreciation, amortisation and provisions decreased 24 % to CHF 152.7 million, mainly reflecting lower provisions.

The cost-income ratio increased to 78.0 % as at the end of 2024, compared with 74.2 % as at the end of 2023. Group profit for the 2024 financial year was CHF 356.2 million, down 5 % year-on-year. LGT is very well capitalised with a tier 1 capital ratio of 18.2 % as at the end of 2024 and has a high level of liquidity.

Significant increase in assets under management

In 2024, LGT reported organic net new money of CHF 11.9 billion, which corresponds to a strong growth rate of 4 %. Both Private Banking and Asset Management contributed to this growth. Assets under management increased 16 % year-on-year to CHF 367.5 billion as at the end of 2024, which in addition to the net asset inflows, reflects positive market and investment performance, and favourable currency effects.