EFG International net profit for 2019 soared due to a reduction in expenses and higher revenues. The year also witnessed a flurry of private bankers joining the firm.
Performance highlights
The Swiss private bank’s net profit soared 34% to CHF94.2m ($96.9m) in 2019 from CHF70.3m a year ago.
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The performance was affected by contributions from Shaw and Partners, where EFG picked a majority stake last year, as well as a CHF11.7m gain from the life insurance portfolio.
Operating profit increased over two-fold to CHF172.6m from CHF81.3m over the period. Operating income rose to CHF1.17bn from CHF1.14bn.
The firm also controlled its operating expenses, lowering it by 6% to CHF998.3m from CHF1.06bn.
Assets under management reached CHF153.8bn as of 31 December 2019, a 17% increase from the prior year.
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By GlobalDataThe growth was driven by net inflows of CHF5.2bn, positive market conditions, and the Shaw and Partners deal.
The Switzerland & Italy Region returned to positive net inflows in 2019.
At the end of December 2019, the firm’s Swiss GAAP CET1 ratio was 16.2% and the total capital ratio was 20.1%. In 2018, the figures were 17.6% and 21.6%, respectively.
Hiring efforts in full swing
The firm hired 181 client relationship officers (CROs) in 2019, increasing its CRO headcount to 815 at the end of last year.
The hire of 181 CROs exceeds the firm’s guidance of hiring 70-100 new CRO on a yearly basis.
Excluding Shaw and Partners, EFG’s CRO headcount stood at 629 in 2019.
EFG CEO Giorgio Pradelli: “In 2019, we successfully refocused our business on profitable growth and executed on a range of our strategic initiatives.
“Our results for the full year reflect these efforts, notwithstanding substantial investments in growth and the challenging interest rate environment.”
