Zurich, March 17, 2016
LGT Financial Results Media Conference 2016 Zurich, Hotel Park Hyatt
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Review 2015
H.S.H. Prince Max von und zu Liechtenstein, CEO LGT
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mvl | CEO 17.03.2016
Review 2015
Excellent net asset inflows, strong income and profit growth, very sound balance sheet
Results
Net asset inflow: CHF 8.8 bn (6.8% of AuM)
Assets under management: CHF 132.2 bn (+2.7%)
Total operating income: CHF 1’149.3 m (+13.8%)
Group profit: CHF 211.0 m (+27.9%)
Cost/income ratio: 71.2% (2014: 75.4%)
Total assets: CHF 34.2 bn (-3.6%)
Tier 1 ratio: 20.1% (2014: 18.4%)
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mvl | CEO 17.03.2016
Review 2015
Highlights
Continued high growth and strong net asset inflows in all regions,
increase in assets under management
Significant rise in profit and income in an environment characterized by economic volatility and currency effects
Rising capacity utilization and improved cost-income ratio of the individual booking platforms
Growing demand for alternative investments both from institutionals as well as private investors
LGT Capital Partners with bigger market share and increased profitability
Fine tuning of the product offering and the organizational structure
Private Banking
Asset
Management
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Results
Olivier de Perregaux, CFO LGT
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mvl | CEO 17.03.2016
IFRS, in CHF million (Final Audit 28.04.2016)
Results
LGT Group income statement 2015
2015
2014
Change
Net interest and similar income
Income from services
Income from trading activities and other operating income
115.3
783.7
250.4
92.5
701.8
215.5
24.7%
11.7%
16.2%
Total operating income 1‘149.3 1‘009.8 13.8%
Personnel expenses
Business and office expenses
631.9
186.9
595.5
165.5
6.1%
13.0%
Total operating expenses 818.8 761.0 7.6%
Depreciation, amortization and provisions
Tax and minority interests
110.7
8.8
56.2
27.6
97.1%
-68.1%
Group profit 211.0 165.0 27.9%
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mvl | CEO 17.03.2016
Development of assets under management 2015
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Results
Assets under management (in CHF billion)
in CHF billion
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+ 2.7 %
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128.8 132.2
8.8 5.3
31.12.2014 New asset inflow Market / FX 31.12.2015
- 3.5
- 0.7
2.2 2.4
5.7
7.5
11.0
- 1.3
- 3.7
3.1
8.6
10.5
7.5 7.1
8.8
-4
-2
0
2
4
6
8
10
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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mvl | CEO 17.03.2016
Results
Development of net asset inflow since 2001
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(in CHF billion)
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3.3
2.7
27.4
0.8
Passiven
2.0
0.4
2.9
5.3
11.8
11.8
Aktiven
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mvl | CEO 17.03.2016
Results
Balance sheet
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in CHF billion Total assets CHF 34.2 billion
Interbank
Loans
Securities*
LGT Princely Portfolio
Other assets
Interbank
Client deposits
Other liabilities
Equity capital
* 92.6% of money market instruments and bonds with a rating ≥ A
Intangible assets
Assets Liabilities
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mvl | CEO 17.03.2016
Results
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Other key figures 2015
Balance sheet key figures 2015 2014 Change
Total assets (in CHF bn) 34.2 35.5 -3.6%
Equity capital (in CHF bn) 3.3 3.4 -1.2%
Tier 1 ratio (in %) 20.1% 18.4%
Liquidity Coverage Ratio 142.7% 130.0%
Headcount 2212 2081 6.3%
Cost/income ratio (in %) 71% 75%
Rating Moody's/Standard & Poor's for LGT Bank Ltd.
Aa2/A+ A1/A+
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Strategy and outlook
H.S.H. Prince Max von und zu Liechtenstein, CEO LGT
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mvl | CEO 17.03.2016
Asset Management
Strategy and outlook
Quantitative and qualitative growth
– Strong net asset inflows from institutional investors – particularly in the private equity and insurance linked securities business, but also for hedge funds and multi-asset solutions
– Increased revenues thanks to good performance and rise in assets under management
Trend toward alternative investments
Growing interest from private investors in alternative investment classes
Further expansion of LGT Capital Partners’ product offering in the core segment and innovative specialized segments
Strategic priorities
Globalization of the multi-alternatives platform
Further optimization of internal processes and procedures with regard to efficiency and investment performance
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mvl | CEO 17.03.2016
Private Banking
Strategy and outlook
Strong growth momentum
– Strong net asset inflows in all regions
– Sound profitability thanks to improved utilization of platform capacities and stable margins
– Significant contribution from the lending business, which has excellent portfolio quality
International diversification pays off
– Excellent geographic mix, with three core platforms in Liechtenstein, Switzerland and Asia, and rapid growth of entities in Austria and the Middle East
– Positive contribution to results from all platforms
Strategic priorities
– Further development of Investment Services, optimization of interface with Asset Management
– Strategic IT initiatives focused on digitalization (LGT SmartBanking)
– More targeted brand positioning and product offering
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mvl | CEO 17.03.2016
FL Private Banking FL Private Banking
International locations/Asset Management
LGT Princely Portfolio
Assets under management in 1999 and 2015 (in CHF billion)
International locations/ Asset Management
Strategy and outlook Successful growth strategy: Diversification of sources of assets under management and revenue streams
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40.8 39.1
3.8
90.2
2.9
44.6
132.2
31.12.1999 31.12.2015
x 23.7
x 1.0
International expansion as a growth driver
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mvl | CEO 17.03.2016
Strategy and outlook
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Employees in Liechtenstein
Employees in other countries
x 1.4
x 20.5
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mvl | CEO
Acquisition of majority stake in Vestra Wealth LLP
17.03.2016
Strategy and outlook
2.4 3.0
3.5 4.1
5.6
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2011 2012 2013 2014 2015
Vestra assets under management (GBP bn) Vestra Wealth LLP
– London-based wealth management boutique, founded in 2008
– Investment management and wealth planning services primarily for UK HNWIs
– 234 staff
– High organic growth
Excellent strategic and cultural fit with LGT
– Acquisition gives LGT a significant presence in London for UK-domestic market and international clients
– Simple intergration process due to similar business models
– Mid- and long-term revenue synergies
Outlook 2016/2017
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mvl | CEO
Strong capitalization, active balance sheet management
Geographic diversification of the corporate portfolio
Stable ownership and managment structure
Increased consolidation and M&A activities in the private banking and asset management areas
Selective use of acquisition opportunities
Changed and new client needs: digitalization Trend toward sustainable investments
IT-initiatives (LGT SmartBanking) Venture Philanthropy, Impact Investing
Expected framework conditions 2016/2017 LGT strategy
17.03.2016
Strategy and outlook
Fragile environment with high level of economic and political uncertainty
Difficult interest rate environment, volatile currencies
Clients are looking for security, stability, transparency and trust
Additional regulatory requirements in Private Banking and Asset Management business
Strategic, long-term oriented approach to dealing with regulatory requirements
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Picture description "Equatorial Sundial", c. 1597/1600
ERASMUS HABERMEL 1540–1606
Erasmus Habermel was one of the 16th century's most renowned makers of sundials and technical equipment. In October 1594 he was appointed by Emperor Rudolf II to the position of astronomical and geometrical instrument maker in Prague. However, equipment made by him bear inscriptions which indicate that he must have been active in Prague prior to this in the years 1576 and 1580. The instrument is unusual for this epoch, as they were usually designed to be suspended, i.e. without a stand, although this had certain drawbacks in terms of legibility. Erasmus Habermel solved this problem by connecting the sundial's meridian ring to the stand and the compass. The stand is equipped with a compass, enabling the device to be aligned with the magnetic north pole. It also has a plumb line, for geocentric alignment. Once the instrument has been aligned with the points of the compass, its readings are unequivocal. The main parts of the instrument are the fixed vertical meridian ring, with the adjustable annular ring and the horizontal global equator ring. The annular ring is attached to the month slide. It was possible to perform numerous functions with this multifunctional scientific instrument.
© LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna
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