Swiss private bank EFG International has reported a underlying net profit attributable to ordinary shareholders of CHF130.7m for the year ended 31 December 2014, an increase of 18% compared to CHF111.2m in the year ago period.
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The company’s IFRS net profit attributable to ordinary shareholders adversely affected by exceptional legal and professional charges and provisions was CHF 61.1m.
Legal charges and provisions included CHF30m in relation to the US Tax Programme, CHF33.7m in litigation-related charges and provisions and CHF5.9m in legal and professional fees.
Operating income for the year was CHF716.6m, up 8% from CHF666m a year earlier, while operating expenses increased 5% year-on-year to CHF575m.
The group’s core private banking revenues were up 7% in 2014 and pre-tax profit increased by 22% year-on-year, the bank said in its statement.
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By GlobalDataRevenue-generating assets under management (AuM) were CHF84.2bn, up 11% from CHF75.9bn at end-2013 reflecting FX and market effects of CHF3.9bn and net new assets of CHF4.4bn in 2014.
The number of client relationship officers stood at 440 at end 2014, compared to 435 a year earlier. The group’s Basel III BIS Capital Ratio stood at 18.7% at end of 2014, up 18.0% compared to end of 2013.
The bank said that Jean Pierre Cuoni will be replaced by Joachim Straehle as the new chairman of the board of EFG International, International, subject to approval at its AGM on 24 April 2015.
"Good progress was made with account remediation during the third quarter, which will likely reduce the final penalty, now expected to be around CHF10.8m compared with CHF21.4m in the first half of 2014," EFG said in a statement.
EFG International CEO John Williamson said: "Core business profitability, productivity, business mix, revenue margin, and net new assets all improved. From start-up to international private bank with AUM of CHF 84 billion is no small achievement, and the qualities and capabilities that built this success remain in place today."
