LGT’s First-Half Profit Surges From Service Income Growth

LGT’s First-Half Profit Surges From Service Income Growth

Liechtenstein’s LGT saw profits rise in the first six months of the year due to a rise in service income, driven by higher client activity.

LGT’s profit rose 38 percent year-on-year to 240.6 million Swiss francs ($298 million) in the first half of 2025, according to the bank’s financial results.

Total operating income increased 10 percent to 1.42 billion francs as lower net interest income was offset by a rise in services income due to higher client activity, trading income and other income. Business and offices expenses dipped 1 percent to 222.8 million francs as development and expansion projects from recent years transitioned into a consolidation phase and the bank «exercised solid cost discipline».

AUM Shrinks From Weaker Dollar

The bank recorded 5.9 billion francs in organic net asset inflows, corresponding to an annualized growth rate of 3.2 percent, with contributions from both private banking and asset management.

In total, assets under management (AUM) decreased 2 percent to 359.6 billion francs as positive market and investment performance was offset by negative currency effects, particularly against the US dollar. The assets also included 2.9 billion francs from the acquisition of Commonwealth Bank of Australia’s Private Advice business in November 2024.

«In the first half of 2025, LGT performed very well on both the income and cost side, despite challenging geopolitical and economic conditions, and achieved a strong increase in profit,» said LGT chairman H.S.H. Prince Max von und zu Liechtenstein.

Market Growth and Technology

Moving forward, LGT will look to drive growth with a focus on new markets such as Australia, Germany, India, Japan and Thailand.

It will also make targeted investments in digitalization and artificial intelligence to deliver new products and services for clients as well as enhance internal efficiency.

Senior Appointment

According to the bank, it is addressing «increasing market dynamics, changing client needs, and the growing influence of data analytics and artificial intelligence» by developing its investment organization.

This includes the appointment of Mika Kastenholz, previously head of products and services and head of investment APAC, as global head of investment solutions and a member of the private banking arm’s senior management board, subject to regulatory approval.