LGT Group expects Asia to surpass its business in the rest of the world as the private bank that’s owned by Liechtenstein’s royal family steps up expansion in the region.
(Bloomberg) — LGT Group expects Asia to surpass its business in the rest of the world as the private bank that’s owned by Liechtenstein’s royal family steps up expansion in the region.
Our “private banking books in Asia aren’t quite at $100 billion, but they have been growing faster than the rest,” Chairman Prince Max von und zu Liechtenstein said in an interview in Dubai. “I think in just a couple of years Asia would have overtaken the rest as those economies are growing faster.”
LGT has about $300 billion of assets under management, which include about $210 billion private banking assets, he said. The bank has already expanded its Asia business from two hubs in Singapore and Hong Kong to centers in Japan, Thailand, India and Australia.
The bank — like other global wealth managers — has been expanding in Asia, lured by the growing number of rich. Knight Frank expects Asia to surpass Europe to become the region with the second-most ultra-rich by 2026 despite China’s “common prosperity” campaign.
‘Good Fit’
LGT has mainly grown organically but is looking out for acquisition opportunities to help the firm achieve a critical mass faster. LGT acquired Australian high net worth advisory firm Crestone Wealth Management for around A$475 million ($299 million) in December.
“In Thailand and Japan we have gone more the organic route,” said von und zu Liechtenstein. “We may potentially find something later but those markets are not very developed from the private banking side so its more difficult to find a good fit.”
Separately, the bank, which started offering crypto custody and brokerage services to private clients in May, doesn’t expect the digital assets to become “a substantial investment area for the next couple of years” following the recent market rout, he said.
When asked about the recent troubles at fellow wealth manager Credit Suisse Group AG, von und zu Liechtenstein said: “I think there is enough strength in that business to get through the crisis,” he said, adding that LGT isn’t looking to buy any of Credit Suisse’s assets.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
