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February 28, 2018updated 01 Mar 2018 12:19pm

EFG International swings to loss in 2017

Swiss private bank EFG International has posted a net loss attributable to equity holders of CHF59.8m for the year ended 31 December 2017.

This compared with a profit of CHF225.3m reported in the previous year.

The bank said that the loss was due to the impact of integration with local rival BSI.

The bank’s operating income was CHF1.14bn, a surge of 58% from CHF722m in the previous year.

Net interest income was CHF345.3m, a 75% increase from CHF196.9m last year. Operating expenses soared 72% year-on-year to CHF1.19bn.

The bank posted outflows of CHF5.8bn in 2017. Overall, revenue-generating assets under management (AuM) for EFG at the end of 2017 were CHF142bn.

The group’s Swiss GAAP common equity Ratio (CET1) was 17.7% at the end of December 2017, compared to 18.2% a year ago. Total Capital Ratio was 21.5%, versus 20% in 2016.

EFG International CEO Giorgio Pradelli said: “2017 was a transformational year for EFG. We successfully completed the BSI integration with the final IT migration of the Swiss business in December, and made considerable progress in de-risking our business as well as addressing certain legacy issues. While this required substantial resources, we improved our underlying profitability in 2017 and saw positive trends in our business throughout the year.

“We are ahead of schedule in realising our cost synergies and we achieved CHF108m in cumulative synergies in 2017, far exceeding our CHF50m synergy target for the year. In addition, underlying net new assets were positive for the full year with an improving trend towards year-end, while AuM attrition continued to decelerate. Now we not only have the necessary scale and size but also the combined platform to drive our business forward and to further build on our enhanced service offering with an extensive range of investment, wealth and credit solutions.”

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