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July 26, 2018

EFG International H1 net profit plummets 27%

Swiss private bank EFG International has posted a net profit of CHF46.4m for the first half of 2018, a slump of 27% compared to CHF63.6m in the same period last year.

The fall in profit was driven by a negative impact of CHF36.4m from its life insurance portfolio, the bank said.

However, the bank’s underlying net profit increased 31% to CHF129.2m from CHF99m a year ago.

Compared to the previous year, operating income dipped 12% to CHF570.4m while net interest income rose 11% to CHF177.7m. Operating expenses fell 6% year-on-year to CHF532m.

Assets under management totalled CHF142.7bn at the end of June 2018, up 7% from CHF133.3bn last year. Overall net asset inflows were CHF2bn.

As at 30 June 2018, the bank’s Swiss GAAP CET1 ratio, total capital ratio, and liquidity coverage ratio were 17.6%, 21.5%, and 171%, respectively.

EFG CEO Giorgio Pradelli said: “In the first half of 2018, we continued to execute on our strategy and focused on further transforming the combined business to improve our market position. Amid an ongoing change process, in which we continued to enhance our regulatory compliance framework, de-risk our business and harmonise our processes, we returned to overall positive net asset inflows and achieved solid underlying net new asset growth of 4.6%.

“We continued to deliver on our cost reduction and synergy targets, generating an increased underlying net profit of CHF129.2m– up 31% compared to the first half of 2017.”

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