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LGT's Impressive Performance in H1 2025

LGT, the international private banking and asset management group owned by the Princely Family of Liechtenstein, has successfully implemented its international strategy, reporting significant profit growth in the first half of 2025. The firm achieved a total operating income of 1.42 billion Swiss francs, marking a 10% increase compared to the same period last year. This growth comes despite a slight increase in costs, thanks to strict cost management practices that limited overall expenses.

The group's profits soared by 38%, reaching 240.6 million Swiss francs. Additionally, net asset inflows hit 5.9 billion Swiss francs, leading to a total assets under management of 359.6 billion Swiss francs as of June 30, 2025. Although geopolitical and economic uncertainties are expected to remain prevalent in the latter half of 2025, LGT appears to be positioned favorably for future growth due to its commitment to international development and investments in digitalization.

In an environment characterized by geopolitical challenges and increased market volatility, LGT's steady performance is noteworthy. The increase in total operating income was primarily driven by a 10% rise in service revenue, attributable to heightened client activity, despite a 17% decline in net interest income. Trading revenue and other operating income rose significantly by 35%, primarily due to increased foreign exchange trading.

LGT's operational costs and office expenses in the first half of 2025 decreased by 1%, amounting to 228.0 million Swiss francs. This decrease can be attributed to a successful harvest season from several years of development and expansion projects, along with prudent cost management. Although personnel expenses rose by 11% to 848.4 million Swiss francs, reflecting the company's strong performance and earlier investments made by the end of 2024, the overall efficiency remained intact. As of June 30, 2025, LGT employed 6,106 individuals, including 38 new hires from the acquisition of the private advisory arm of Australia’s Commonwealth Bank, announced in November 2024 and completed by mid-2025. Depreciation and provisions decreased by 6%, totaling 64.2 million Swiss francs.

The cost-income ratio improved to 75.7% from 78.0% at the end of 2024, supporting a significant increase in group profits. With a robust Tier 1 capital ratio of 18.5% as of June 30, 2025, LGT maintains high liquidity levels, underscoring its strong capital foundation.

Solid Net Asset Inflows in Private Banking and Asset Management

LGT also reported organic net asset inflows of 5.9 billion Swiss francs in the first half of 2025, reflecting a 3.2% annualized increase. Both the private banking and asset management divisions contributed to this growth in net asset inflows. However, the total assets under management, while reaching 359.6 billion Swiss francs, decreased by 2% from 367.5 billion Swiss francs at the end of 2024, primarily due to adverse foreign exchange rates against the U.S. dollar. Despite the challenges, market performance and operating results were favorable, aided by the recent acquisition
of Commonwealth Bank's private advisory business.

Outlook for the Future

As LGT looks to the latter half of 2025, it anticipates continued geopolitical and economic uncertainties. However, the firm remains well-positioned to focus on international growth and strategic digital investments. LGT continues to commit to strengthening its position in existing markets while enhancing its efforts in new markets, such as Australia, Germany, India, Japan, and Thailand.

To meet the evolving market dynamics, customer needs, and the growing influence of data analytics and artificial intelligence, LGT is further developing its investment organizations. Mika Castenholtz, who previously served as Head of the Product & Services Division and Head of APAC Investments, is set to be appointed as the head of Global Investment Solutions, pending regulatory approval.

LGT has earned numerous accolades in the first half of 2025, including 'Best Pure Play/Boutique Private Bank worldwide' at the 'Global Private Banking Awards 2025' hosted by Euromoney. The firm was also recognized by WealthBriefing in categories such as 'Innovation in Sustainability,' 'Philanthropy Service Offering,' and 'NextGen Support.' Additionally, it was awarded the title of 'Best Private Bank in ESG Technology' at the 'PWM Wealth Tech Awards 2025'.

Max von und zu Liechtenstein, the chairman of LGT, stated, "Our first half of 2025 has shown remarkable profitability despite the challenging geopolitical and economic landscape. Our international growth strategy continues to progress steadily, having consistently worked for years to open doors to attractive new markets. As a family-owned enterprise, we aim to remain a trusted partner for clients worldwide through our commitment to providing attractive investment products and quality."

Key Financial Metrics as of June 30, 2025

1. LGT’s CET1 ratio is equivalent to its Tier 1 capital ratio and total capital ratio.
2. Includes 38 employees employed as a result of the completion of the acquisition of Commonwealth Bank's private advisory business in the first half of 2025.

The half-year financial statements are not subject to audit.

About LGT

LGT has been owned by the Princely Family of Liechtenstein for over 90 years and is a leading international private banking and asset management group. As of June 30, 2025, LGT manages total assets of 359.6 billion Swiss francs (approximately 451.6 billion USD) from wealthy clients and financial institutions. The firm operates more than 30 locations across Europe, Asia, the U.S., Australia, and the Middle East, employing over 6,000 individuals. For further details, visit www.lgt.com.