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July 25, 2012updated 04 Apr 2017 3:37pm

EFG net profit down 5%, AuM dips in H1

EFG Internationals IFRS net profit dropped 5% in the first half of 2012 to CHF53.1m ($54.2m), down from CHF55.9m last year. The Swiss bank reported operating income of CHF 409.1m in the first half of 2012, a 3% increase on the six months to 30 June 2011 However, EFG experienced net asset outflows of CHF1.1bn, down from inflows of CHF 2.7bn in the first half of 2011.

By Lizabeth Davis

EFG International’s IFRS net profit dropped 5% in the first half of 2012 to CHF53.1m ($54.2m), down from CHF55.9m last year.

The Swiss bank reported operating income of CHF 409.1m in the first half of 2012, a 3% increase on the six months to 30 June 2011.

However, EFG experienced net asset outflows of CHF1.1bn, down from inflows of CHF 2.7bn in the first half of 2011.

Revenue-generating assets under management were CHF 76.5bn, a 4% drop on a year-on-year basis.

 

Business restructure plans on track

 

The Zurich based private bank said in its recent annual report that plans to restructure the bank, set out in its business review in October 2011, were on track.

 

In the review a number of key changes were reported:

 

  • The number of client relationship officers that stood at 660 in 2011 has substantially dropped to 503.

 

  • EFG reported that since October last year it has closed or is in the process of selling businesses in France, India and Canada.

                   

  • Non-core businesses have also been exited, as a result of EFG International’s strategy to return to a single focus on private banking:

The business of SIF Swiss Investment Funds SA was transferred to CACEIS, and negotiations are currently being formalised with regard to OnFinance, EFG International’s Lugano-based financial services boutique.

  • Office locations have been reduced by 20 in eight different geographic regions globally as a result of the closure of loss-making businesses.

 

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