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.
Outlook
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. To this end, LGT is continually enhancing its investment
expertise. This includes its dedicated range of sustainable investments
and privileged access to private market investments, which continue to
attract growing interest from both LGT's Private Banking clients and the
institutional clients of LGT Capital Partners.
In line with its international growth strategy, LGT has continued to
grow its private banking presence across Europe, the Middle East and the
Asia-Pacific region. Since commencing operations in Australia, India,
Thailand and Japan in recent years, and entering Germany with multiple
Private Banking locations, LGT's activities in these markets have
developed favourably. Following this period of dynamic growth, LGT is
now placing a greater focus on consolidation, and realising synergies
and economies of scale. At the same time, LGT is concentrating on
reinforcing its position across its various markets and efficiently
further developing its private banking platform.
LGT will continue to focus on implementing the digitalisation strategy
launched in 2023, which includes an investment of CHF 200 million over
five years. Its digital development hub in Barcelona supports the launch
of innovative tools. LGT's aim is to leverage technological
advancements, including generative artificial intelligence, to offer its
clients state-of-the-art services while increasing the efficiency of
internal processes.
H.S.H. Prince Max von und zu Liechtenstein, Chairman LGT, says: "LGT
developed favourably in 2024, reinforcing its foundation for future
success. We continued to execute our long-term strategy, enhancing our
presence in both our new and our established markets across Europe and
Asia-Pacific, while driving digital innovation. Our foremost priority,
particularly in times of global political and economic uncertainty, is
to be a reliable partner to our clients, providing exceptional advice
and investment expertise. As a family-owned company, LGT has a stable
business model and offers compelling wealth and asset management
services for current and future generations."
LGT in brief
LGT is a leading international private banking and asset management
group that has been fully controlled by the Liechtenstein Princely
Family for over 90 years. As at 31 December 2024, LGT managed assets of
CHF 367.5 billion (USD 405.6 billion) for wealthy private individuals
and institutional clients. LGT employs over 6000 people who work out of
more than 30 locations in Europe, Asia, the Americas, Australia and the
Middle East.
www.lgt.com
Key figures as per 31.12.2024
|
31.12.2024
|
31.12.2023
|
Change in %
|
|
|
|
Consolidated income statement (in CHF m)
|
|
|
Net interest income and credit losses
|
347.9
|
517.2
|
-33
|
Income from services
|
1 765.3
|
1 556.2
|
13
|
Income from trading activities and other operating income
|
556.6
|
493.5
|
13
|
Total operating income
|
2 669.8
|
2 567.0
|
4
|
Personnel expenses
|
1 617.3
|
1 478.0
|
9
|
Business and office expenses
|
465.8
|
427.8
|
9
|
Total operating expenses
|
2 083.0
|
1 905.8
|
9
|
Depreciation, amortisation and provisions
|
152.7
|
201.8
|
-24
|
Tax and minority interests
|
77.9
|
84.0
|
-7
|
Group profit
|
356.2
|
375.3
|
-5
|
|
|
|
Assets under management (in CHF bn)
|
367.5
|
316.0
|
16
|
|
|
|
Net asset inflow (in CHF bn)
|
11.9
|
21.91
|
|
|
|
Asset growth from acquisitions (in CHF bn)2
|
0.0
|
6.4
|
|
|
|
Total assets (in CHF bn)
|
61.3
|
58.1
|
5
|
|
|
|
Group equity capital (in CHF m)
|
6 013
|
5 987
|
0
|
|
|
|
Ratios
|
|
|
Cost/income ratio
|
78.0 %
|
74.2 %
|
Common equity tier 1 capital ratio (CET1)3
|
18.2 %
|
19.9 %
|
Liquidity coverage ratio (LCR)
|
207.8 %
|
235.9 %
|
|
|
|
Headcount
|
6 049
|
5 638
|
7
|
|
|
|
Rating Moody's/Standard & Poor's for LGT Bank Ltd.
|
Aa2/A+
|
Aa2/A+
|
1 Net new assets 2023 include a one-off inflow of CHF 6.7 billion from a major pension fund client of LGT Capital Partners.
² Acquisition of the wealth management business of abrdn in the UK as of 1 September 2023.
3 LGT's CET1 ratio equals tier 1 capital ratio and total capital ratio.
Final Audit: 24 April 2025