A significant rise in LGT's total headcount since the start of this year meant that while operating income rose and other metrics improved, there was a slight fall in group profit in the first six months of 2021.

LGT, the Liechtenstein-based private banking group, delivered a profit of SFr180.6 million, down from SFr190.7 million, down by 5.3 per cent year-on-year. A big expansion in headcount and personnel costs explained part of the dip. 

Although total operating income rose 5.9 per cent year-on-year to SFr953.4 million, personnel costs rose 16.6 per cent to SFr562.6 million, the group said in a statement today. Total headcount rose to 3,910 from 3,838 at the end of 2020. 

Total operating expenses rose 11.8 per cent to SFr690.2 million. Depreciation, amortisation and provisions fell 15.6 per cent to SFr56.8 million – reflecting a common pattern of banks adjusting to improved economic conditions compared with the start of the pandemic last year.

There were SFr14.1 billion of net asset inflows in H1 2021, sharply up from SFr1.6 billion a year ago, LGT Group said, taking total assets under management to SFr275 billion, up from SFr240.7 billion at the end of 2020. AuM also gained on favourable market developments and higher client activity.

Looking ahead, LGT said it is confident that “it will remain on its sustainable growth path in the second half of 2021 and expects the positive trends to continue in both established and in growth markets”.

In German-speaking Europe, LGT completed the acquisition of UBS’s wealth management business in Austria at the end of July 2021 and added to its German position by buying a “strategic minority stake” in the digital asset manager LIQID. 

The bank operates in regions including the Middle East and Asia, and has more than $76 billion in AuM in Asia and Europe.