LGT Financial Results Media Conference 2014 Zurich, Hotel Park Hyatt. Zurich, March 20, 2014

Size: px

Start display at page:

Download "LGT Financial Results Media Conference 2014 Zurich, Hotel Park Hyatt. Zurich, March 20, 2014"

Donna Snow
6 years ago
Views:

1 LGT Financial Results Media Conference 2014 Zurich, Hotel Park Hyatt Zurich, March 20, 2014

2 Review 2013 H.S.H. Prince Max von und zu Liechtenstein, CEO LGT Group 2

3 Review 2013 Strong balance sheet, excellent inflow of new assets, solid profit Results Net asset inflow: CHF 7.5 billion (7.3% of AuM) Assets under management: CHF billion (+8.4%) Total operating income: CHF million ( 6.5%) Group profit: CHF million ( 34.9%) Cost/income ratio: 76.9% (2012: 64.5%) Total assets: CHF 28.3 billion (+4.4%) Tier 1 ratio: 21.3% (2012: 21.5%) In June 2011, the IASB published revised standard IAS 19 (Employee Benefits). LGT Group has been applying the standard with retroactive effect since January 1, 2013, and has also adapted the comparison periods in the previous year accordingly. 3

4 Review 2013 Highlights Private Banking Strong net asset inflow in all regions and business sectors Very good development of all booking platforms: increasing cost efficiency and improved profitability thanks to larger asset base Operational optimization measures (further development of CRM, advisory process, functional leadership) Asset Management Very good inflows of new assets in the focus areas Expansion of institutional distribution (new offices in Beijing, Dubai) Successful positioning of the insurance linked securities business Integration of LGT Capital Management into LGT Capital Partners is about to be completed 4

5 Results Olivier de Perregaux, CFO LGT Group 5

6 Results LGT Group income statement Change Net interest and similar income % Income from services % Income from trading activities/other income % Total operating income % Personnel expenses Business and office expenses % 10.5% Total operating expenses % Depreciation/provisions Taxes/minority interests % 75.4% Net profit % IFRS, in CHF million (Final audit 04/24/2014) In June 2011, the IASB published revised standard IAS 19 (Employee Benefits). LGT Group has been applying the standard with retroactive effect since January 1, 2013, and has also adapted the comparison periods in the previous year accordingly. 6

7 Results Development of assets under management 2013 in CHF billion % Net Neugeldzufluss asset inflow Market Markt performance / Währung Assets under management (in CHF billion) 7

8 Results Development of net asset inflow since (in CHF billion) 8

9 Results Growth and diversification strategy: origin of assets under management Assets under management in 1999 and 2013 (in CHF billion) x LGT Princely Portfolio International locations/ Asset Management International locations/asset Management FL Private Banking 40.8 x FL Private Banking

10 Results Growth and diversification strategy: headcount development x x Employees in Liechtenstein Employees in other countries

Princely Portfolio Intangible assets Other assets Other liabilities

11 Results Solid balance sheet in CHF billion Total assets CHF 28.3 billion Interbank Interbank Client deposits Loans Securities* LGT Princely Portfolio Intangible assets Other assets Other liabilities Equity capital * of which 92.5% money market instruments and bonds with a rating A 11

12 Results Other key figures 2013 Balance sheet key figures Change Total assets (in CHF billion) % Equity capital (in CHF billion) % Tier 1 ratio (in %) Headcount % Cost/income ratio (in %) 77% 65% Rating Moody's/Standard & Poor's for LGT Bank Ltd. A1/A+ Aa3/A+ In June 2011, the IASB published revised standard IAS 19 (Employee Benefits). LGT Group has been applying the standard with retroactive effect since January 1, 2013, and has also adapted the comparison periods in the previous year accordingly. 12

13 Strategy and outlook H.S.H. Prince Max von und zu Liechtenstein, CEO LGT Group 13

14 Strategy and outlook The Group s positioning Solid foundations Focused business model with strong core competencies Simple organizational and management structure, with a long term outlook Attractive geographical portfolio High advisory quality and investment expertise LGT brand is gaining momentum LGT and Liechtenstein have coped well with the challenges of the financial crisis LGT characteristics are increasingly recognized LGT is seen as an employer of choice Opportunities and strategic priorities Focused development of target markets Investment management (after completion of integration of LGT Capital Management and LGT Capital Partners) Market consolidation Regulatory environment 14

15 Strategy and outlook Private Banking Positive development of key financial figures Very good development of all booking platforms: average annual growth in assets under management of over 10 percent since 2011 Successful cost management, despite higher expenditures for legal, compliance and risk management Increased profitability thanks to growing capacity utilization of the platforms Various awards confirm the high quality of our services Elite Report: summa cum laude (for more than 10 years) Fuchsbriefe: ranked top 10 private bank in Europe; award for the best advisory consultation of the year Strategic priorities Fine tuning of regional strategies greater concentra on on core markets Further development of CRM system and advisory process Constantly adapting the business model to reflect regulatory developments 15

16 Strategy and outlook Asset Management Successful development of key financial figures Strong inflows of new assets from institutional investors Synergies due to successful integration of LGT Capital Management into LGT Capital Partners (completion planned for second quarter of 2014) Positive contribution of the insurance linked securities business Significant rise in profit contribution Successful positioning as provider of multi alternatives solutions with strong asset allocation competence Alternative investments are gaining market shares Importance of asset allocation expertise is increasingly recognized Strategic priorities Further expansion of institutional distribution (USA, UK) Establishing centers of excellence for private equity co investments, real estate Fine tuning in investment management and back office following legal merger 16

17 Strategy and outlook The new LGT Capital Partners LGT Capital Partners was founded in 1998 LGT Group Foundation 8 offices around the world 300 staff LGT Bank LGT Capital Partners LGT Capital Management 400 clients from 32 countries USD 45 billion AuM Private Banking Alternative Asset Management High alignment with clients interests significant investments of staff and LGT Group into own programs Planned merger Asset Management Strong team culture leading to minimum turnover of key staff Note: Numbers and organizational information are subject to approval by the regulator 17

Strategy and outlook Industry trends in asset management Asset management in USDtrn Alternative investment in USDtrn Asset management moves to centre stage Client AuM expected to increase by

clients will grow Alternatives become more important and more mainstream Allocation to alternatives expected to rise by almost 10 percent p.a. Investors seek strategies with the prospect of alpha and downside risk protection Firms with alternative focus and global scale will benefit Source: PwC analysis.

18 Strategy and outlook Industry trends in asset management Asset management in USDtrn Alternative investment in USDtrn Asset management moves to centre stage Client AuM expected to increase by 37 percent until 2020 State of the art skills required in increasingly complex landscape industries best will benefit Demand for solution based products tailored to specific needs of global clients will grow Alternatives become more important and more mainstream Allocation to alternatives expected to rise by almost 10 percent p.a. Investors seek strategies with the prospect of alpha and downside risk protection Firms with alternative focus and global scale will benefit Source: PwC analysis. Past data based on Towers Watson, Preqin, The City UK and Hedge Fund Research 18

Strategy and outlook Key offerings and milestones 2013 Private Markets Private Equity Inflationlinked Fixed Income Enhanced Specialised Long Only Investments USD 4 billion new assets from over 60

19 Strategy and outlook Key offerings and milestones 2013 Private Markets Private Equity Inflationlinked Fixed Income Enhanced Specialised Long Only Investments USD 4 billion new assets from over 60 clients Gained 37 new clients 40 percent from mandate clients Real Estate Multi Asset / Multi Alternative Solutions Commodities From 14 countries and regions Opened offices in Beijing and Dubai New office planned in Australia (2014) Hedge fund solutions Alternative Beta ILS Liquid Alternatives Note: Offering information is subject to approval by the regulator 19

20 Strategy and outlook Outlook for 2014 Still challenging, fragile environment with economic and political uncertainty LGT has started this year well and is confident of continuing to achieve good results provided there are no unforeseen events Further, targeted investments in organic growth with Asia, the Middle East and the UHNWI segment in general as the primary growth drivers Particular strategic advantages Long term and efficient orientation of ownership and of management structure Simple business model with good growth opportunities High level of investment expertise Good positioning of both LGT Group and the home market of Liechtenstein in times of constant regulatory changes 20

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.

21 Picture description "Equatorial Sundial", c. 1597/1600 ERASMUS HABERMEL 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 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 21

22 Legal information This document is intended solely for the recipient and may not be duplicated, distributed or published either in electronic or any other form without the prior written consent of LGT Group Foundation. This publication is for your information only and is not intended as an offer, solicitation of an offer, public advertisement or recommendation to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any undertaking or guarantee as to it being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published, therefore, information shall not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decisionmaking in relation to financial, legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Forecasts are not a reliable indicator of future value developments. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they initially invested. We disclaim without qualification all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. It is up to potential investors to obtain comprehensive information and appropriate advice in their home country, country of residence or country of domicile about the applicable legal requirements and any tax consequences, foreign currency restrictions or foreign exchange controls and any other aspects that are of relevance prior to any decision to subscribe to, purchase, own, exchange or redeem such investments, or enter into any other transaction in relation to same. The securities and rights mentioned in this document may not be purchased or held by investors or for investors domiciled in the USA and/or with US citizenship, nor may such securities and rights be transferred to them. 22

VALUES WORTH SHARING. Brief portrait

VALUES WORTH SHARING. Brief portrait VALUES WORTH SHARING Brief portrait A look inside the Princely Collections For more than 400 years, the Princes of Liechtenstein have been passionate art collectors. The Princely Collections include key