The international private banking and asset management group which saw a decline in profits at the same period last year, due in part, to the Euro zone debit crisis and the economy, said half year profits were attributed both to increased income, and to maintaining disciplined cost management.
Net asset inflows totalled CHF5.5bn, representing year-on-year growth rate of 13%.
The Liechtenstein-based bank said that assets under management increased 9% or CHF7.8bn to CHF94.7bn from CHF86.9bn the previous year.
LGT also reported a 14% rise in total operating income to CHF466m in the first half of 2012 from CHF408m as at 30 June 2011.
Improvements were also seen in the cost-income ratio, which fell from 75% year-on-year to 65%.
Following the sale of LGT’s seven-office private bank in September 2011 the bank is planning to continue restructuring its business.
This includes the recent purchase of the insurance-linked investments boutique of Clariden Leu AG and plans to establish an investment solutions subsidiary in Dubai in the second half of the year.
In addition, the bank hopes to open a new branch in Salzburg by the end of the year to help facilitate its strong market position in Austria.
Source: Private Banker International