Liechtenstein's «princely» bank LGT had a growth spurt last year after a hiring push. Given economic ructions sparked by the coronavirus pandemic, CEO Max von Liechtenstein expects more to follow.

LGT, owned by Liechtenstein's royal family, more than doubled its ranks in the last decade. Last year, the Vaduz-based wealth manager hired 250 new private bankers to bring its total personnel at year-end to 3,662.

This year, LGT CEO Prinz Max von Liechtenstein expects to keep hiring – regardless of market turmoil induced by the coronavirus pandemic.

Inflows Despite Crisis

«These increasing challenges in the coming months will separate the wheat from the chaff,» the CEO said. «I believe that especially in this difficult environment, we can push forward – it's typically in tough environments that market share shifts.»

LGT seems to be faring well in the early stages of the crisis: Prince Max said the bank had taken in new money in the first two months of 2020. In addition, the wealth manager weathered the stock market crash with a comparably favorable performance.

Cautious on 2020

Given previously frothy valuations, the drop is «not a total catastrophe,» the CEO said.  «We still see interest by clients to buy and sell,» he noted. «It's not as though volumes have totally collapsed.»

Nonetheless, the bank is keeping a tighter grip on its spending, and signaled it likely won't hit its revenue targets this year. In 2019, LGT's spending and revenue rose in step, but the bank isn't likely to fully reap the benefit of the new recruits amid the crisis this year.

Bidding War?

LGT, which prefers to acquire entire teams, didn't disclose a hiring target for 2020. A direct competitor to firms also hiring aggressively, like EFG International, LGT's Prince Max said he doesn't fear a price war. 

«Most people don't move for more money, but because they're somehow unsatisfied with their current employer and believe they will be more fulfilled and have more success with clients elsewhere,» he said. «We haven't won our organic growth by paying higher salaries.»