LGT, the private banking and asset management group owned by Princely Family of Liechtenstein, has reported group profit of CHF124.4m for the first half of 2016, down 5% compared to CHF131m a year earlier.
Total operating income was CHF576.3m, a rise of 5% from CHF548.8m in the prior year.
Net interest and similar income stood at CHF90.6m, a surge of 91.4% from CHF47.3m during the same period in 2015. Trading and other income dropped 13.4% year-on-year to CHF103.9m from CHF120m.
Total operating expenses were CHF417m, a 9% increase from CHF382.7m a year ago. New staff hires, mainly in the Asian market and in asset management, led to a 5% rise in personnel expenses to CHF315.3m.
As at 30 June 2016, the bank’s cost-income ratio increased to 72.4% from 71.2% at the end of December 2015, while tier 1 ratio dropped to 19.8% from 20.1% at year-end 2015.
Assets under management (AuM) increased 8.4% to CHF143.4bn compared to CHF132.2bn at year-end 2015. These include CHF8bn in AuM from the acquisition of British wealth management boutique LGT Vestra.
The bank’s net asset inflows in the first half of 2016 were CHF4.4bn.
LGT CEO H.S.H. Prince Max von und zu Liechtenstein said: "Our continued growth in the first half of 2016 despite a number of uncertainties that impacted financial markets and the environment for the financial sector, demonstrates the high level of trust that clients have in LGT.
“We will continue to pursue our strategic direction and concentrate fully on providing added value and stability for our clients thanks to the comprehensive expertise of our broad-based private banking and asset management business."