Private bank EFG International maintains profitable growth amid an ongoing change process. But the Asia region saw weaker performance as a result of reduced client risk appetite.

Since announcing its first-half 2018 results in July, EFG International has maintained its positive momentum, generating year-to-date annualised underlying net new asset growth at the lower end of its target range of 3 percent to 6 percent (originally set for 2019), the bank said on Thursday.

The ‹Switzerland & Italy› region has returned to positive underlying net asset inflows in the period from July to end-October, while the Asia region saw weaker performance as a result of reduced client risk appetite given the increased market volatility.

Negative Impact From Market Valuations

As of 31 October 2018, Assets under Management were 140.1 billion Swiss francs, reflecting the negative impact from market valuations and the forced AuM attrition of 1.4 billion Swiss francs in the last four months, due to the BSI integration and in line with expectations.

The underlying revenue margin was lower than in the first half of 2018, largely due to seasonally slower business activity. In terms of costs, EFG International continued to make progress in reducing its underlying cost base and remained on track to reach the targeted pre-tax cost synergies of 180 million Swiss francs by end-2018.

Restructuring Costs Down

In terms of non-underlying items, restructuring costs are being wound down and the life insurance portfolio recorded a marginal P&L impact in the period from July to end-October 2018, the bank said.