The European bank, which operates in a number of regions, including Asia, reported a stronger set of results for the first half of this year. An acquisition of an Australian wealth firm helped lift AuM.

LGT, the Liechtenstein-based private bank, has reported a 20 per cent year-on-year rise in profit for the first six months of 2022, reaching SFr217.2 million ($225.2 million).

Assets under management held stable at SFr284.7 billion at the end of June, aided by net asset inflows of SFr6.2 billion and asset growth of SFr15.6 billion from the acquisition of Crestone Wealth Management earlier this year. (Since 12 May 2022, the costs and revenues of Crestone, an Australian firm, have been reflected in LGT’s results.)

The bank said the first half of 2022 was “exceptionally challenging due to the geopolitical and economic uncertainties in international financial markets, which was also reflected in the generally subdued level of client activity.”

The results came a day after rival Liechtenstein-based bank, LLB, also reported a rise in its H1 2022 profit.

LGT generated SFr784.6 million in income from services in the first half of 2022, up 13 per cent from a year before. At SFr128.4 million, income from trading activities and other operating income was 19 per cent lower than in the prior-year period, as hedging operations only partially offset lower transaction volume. 

Net interest income increased by 36 per cent to SFr138.2 million due to rising interest rates. Overall, LGT’s total operating income rose by 10 per cent to SFr1051.2 million.

Reflecting headcount growth, personnel expenses increased 3 per cent to SFr582.1 million, despite lower accruals for long-term performance-related compensation. Business and office costs rose 25 per cent to SFr159.6 million due to greater investments in digitalisation, a rise in expenses for travel, marketing and events, as well as higher consulting costs. Overall, total operating costs increased 7 per cent to SFr741.6 million.

The cost-income ratio narrowed to 70.6 per cent at the end of June 2022, compared with 75.2 per cent as of 31 December 2021 and 72.4 per cent as at 30 June 2021.