Successful year 2019 is reason for optimism
The annual financial statements of the three major Liechtenstein banks show that the upward trend of the past several years is continuing. Significant increases were again achieved in assets under management, net new assets, and operating profits.
Although the banks' year-end results are not yet all available, we expect a new record level of assets under management as of the end of 2019. These are clear signs that the banks' profitable growth trajectory is continuing. This is all the more gratifying given that the challenges of the past year have not diminished – such as Brexit, the flaring up of trade conflicts, volatile market conditions, and the persistently challenging negative interest rate environment. The year 2019 again demonstrates that the business models of Liechtenstein banks are very resilient and on sound footing for the long term.
This also makes us optimistic overall about 2020 and the longer-term future of our banks and the banking centre. Given the severe negative impact of the coronavirus crisis on both the demand and the supply side, however, the entire economy is facing an enormous stress test. Under these circumstances, forecasts are hardly feasible at the present time. However, the ab ve-average equity ratio of Liechtenstein banks, combined with their stable, long-term, and risk-averse business models as mentioned above, should entail that the banks will be able to weather this situation as well.