Liechtenstein bank LGT posts 19 pct first-half profit rise

Liechtensteinische Landesbank Aktiengesellschaft

27/08/2014 08:38

* H1 net profit up 19 pct at 102.8 mln francs 
    * Income up 8 percent 
    * Cost-to-income ratio 71 pct vs nearly 77 pct 
    * Net new money 2.3 bln francs 
 
    ZURICH, Aug 27 (Reuters) - Liechtenstein's biggest bank LGT 
 LGTGFB.UL  said first-half net profit rose more than 19 percent 
on higher trading income and cost cuts, and voiced optimism 
after winning 2.3 billion Swiss francs ($2.5 billion) in fresh 
client funds.  
    The Vaduz-based bank, owned by the principality's royal 
family, has recovered faster than the country's smaller banks 
LLB  LLB.S  and VP Bank  VPB.S , in part because it was one of 
the first major banks to be forced to face an international 
clampdown on tax evasion since the financial crisis.  
    LGT said in June it was buying $12.5 billion of Swiss 
private banking assets from HSBC  HSBA.L , held by clients in 
dozens of countries, including in central and eastern Europe, 
and some countries in west Europe, Africa and in Latin America, 
that the British bank wanted to offload to scale back its wealth 
management arm.  ID:nL6N0P52AM  
    LGT, which said the deal was proceeding on schedule and was 
expected to close in the fourth quarter, said net profit for the 
first six months reached 102.8 million francs on income up 8 
percent due to a jump in trading and other, undisclosed income. 
    Cost-cutting also helped, with the bank's cost-to-income 
ratio edging lower to 71 percent from nearly 77 percent a year 
ago. 
    "LGT is optimistic in its outlook for the further 
development of its business for the remainder of the year," the 
bank said, without elaborating. 
    The bank's net new money - a key indicator for future 
prospects - translates to 4.2 percent annual growth, which puts 
it in line with that seen by larger Swiss rivals such as UBS 
 UBSN.VX , Credit Suisse  CSGN.VX  and Julius Baer  BAER.VX . 
(1 US dollar = 0.9166 Swiss franc) 
 
 (Reporting by Katharina Bart; Editing by David Holmes) 
 ((Katharina.Bart@thomsonreuters.com; +41 58 306 7312; Reuters 
Messaging: katharina.bart.thomsonreuters.com@reuters.net)) 
 
Keywords: LIECHTENSTEIN LGT/RESULTS