The Group announced in its annual results, published on Tuesday, that profits grew as a result of the successful implementation of an international growth strategy focusing on onshore markets, Asia and asset management. The bank's net new money inflow increased to CHF11 billion in 2007, up from CHF7.5 billion in 2006.

LGT Group expects its growth to "slow somewhat" in the short-term as a result of the events surrounding the data theft at LGT Treuhand in 2002 "and the illegal disclosure of the data to foreign authorities".

However, its medium-term outlook is more optimistic.

"The theft of client data from LGT Treuhand AG in 2002 had an unforeseeable subsequent impact in the middle of February 2008," the bank stated.

"As has become apparent in the meantime, the offender convicted in 2003/04 was paid by foreign authorities to disclose the illegally acquired data concerning a total of around 1,400 trust clients from various countries. Moreover, he allegedly received a new identity. LGT Group regrets these occurrences and the media headlines associated with them. On the whole, LGT does not expect these events to have a significant influence on its business success," the bank added.

Commenting on the results and the theft of bank data, Prince Max of Liechtenstein, CEO of LGT Group stated: "We are taking these recent events extremely seriously and we have apologized to our clients. We are however defending ourselves against the unjustified accusations and preconceptions leveled against our clients and our company."

He also rebuffed accusations by onshore governments recently that Liechtenstein remained a magnet for tax evaders and dirty money, arguing that the jurisdiction "has in place one of the strictest legal frameworks in the world" to combat money laundering.

The Prince added that the largest proportion of LGT's growth is achieved in onshore wealth management, in markets beyond Europe and in asset management, and that it intends to "resolutely pursue this growth and diversification strategy".

In order to reduce its dependence on the Liechtenstein financial centre for business, LGT has established locally regulated banks in Germany, Switzerland and Austria in recent years, and these are said by the bank to be "developing successfully".

The bank is also intensifying its focus on international clientele in the growth markets of Eastern Europe, Latin America, the Middle East and, via its bank in Singapore and its representative office in Hong Kong, throughout Asia.

In 2007, LGT Group's total operating income rose from CHF726.7 million in 2006 to CHF878.8 million in 2007 (up 21%), with earnings expanding sharply in all areas. A rise in operating expenses to CHF576.0 million was attributable to the Group's continued growth and the accompanying expansion in personnel, the banks stated. Total assets climbed from CHF17.9 billion to CHF21.4 billion.

After the appropriation of CHF150 million to the Prince of Liechtenstein Foundation, Group equity capital stood at CHF3.2 billion per December 31st, 2007.

At the end of 2007, LGT Group administered client assets totaling CHF102.8 billion, exceeding the CHF100-billion level for the first time.

Last year, LGT gained CHF11 billion of new client money (previous year: CHF7.5 billion), corresponding to 13% of assets under administration at the end of 2006. In total, assets under administration expanded by CHF14.8 billion.

LGT also manages the portfolio of the Princely House of Liechtenstein, which posted a performance of 15.5% last year. The Princely Portfolio combines traditional investments in equities, fixed interest securities and real estate with alternative investments, and has attained 123.5% returns since its inception on December 31st, 1998.