The Zurich-based private bank swung to a profit in the first six months of the year – and also made progress in attracting new client funds.
After posting a loss last year, EFG International reported net income of 46.6 million Swiss francs (46.9 million) in the six months through June, down from 63.6 million francs a year earlier, the bank said in a statement on Wednesday.
More important for EFG International after the outflows seen in the wake of the takeover of Ticino-based bank BSI, was the growth in new client assets. Net new monies climbed by 3.3 billion francs, or an annualized 4.6 percent, it said. EFG International has target band for new money growth of 3 percent to 6 percent.
Cost Cuts Working
Nevertheless, managed assets rose only 700 million francs from the end of 2017 to reach 142.7 billion francs. The outflows at the bank in the reporting period reached 1.3 billion francs, less than the 2.2 billion francs in 2017.
The bank's cost-cutting plan through the end of 2019 is on track, with savings of 180 million francs by the end of 2018 bring total savings by the end of next year to 240 million francs. The cost-income ratio is now at 79.7 percent, compared with 85.9 percent at the end of 2017.
Feverish Clear-Out
CEO Giorgio Pradelli said EFG International is now well on the way to becoming one of the leading Swiss institutions.
The past quarter was characterized by much upheaval: Following the loss of 59.8 million francs last year, the bank halved its management team. A failed million-strong credit to a Taiwanese insurer and a whistleblower affair in the U.K. generated also unwelcome headlines for the bank.
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