Swiss private bank EFG International has reported net profit of CHF94.9 million for the first half ended 30 June 2013, an increase of 62% compared to CHF58.4 million in the year ago period.
The bank attributed surge in net profit largely to the sale of its remaining stake in a listed subsidiary and a jump in private banking income.
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Operating income was CHF381.8 million in the first half of 2013 compared with CHF 409.1 million a year earlier – excluding EFG Financial Products, down from CHF 346.9 million to CHF 330.3 million – due to lower asset and liability management revenues and a reduction in specialist structuring transactions relating to large clients.
After allowing for these factors, mainstream private banking revenues from continuing businesses were 10% higher compared with the first half of 2012. These factors also constrained the revenue margin, which stood at 97 bps versus 104 bps a year earlier (87 bps versus 92 bps, excluding EFG Financial Products, against a target of 84 bps).
Revenue-generating assets under management (AuM) were CHF76 billion, compared with CHF78.7 billion at end-2012.
EFG International improved both the level and composition of its capital during 2012, and this process continued in the first half of 2013. On a Basel III basis, EFG International’s BIS Capital Ratio stood at 18%, up from 15.9% at end-2012, compared with a business review target range of 14-16%. The Common Equity Ratio (CET 1) stood at 13.5%, up from 11.7%.
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By GlobalDataNet new assets relating to continuing businesses were CHF1.9 billion (annualised growth of 5%), compared with CHF1.2 billion in the first half of 2012.
The bank in a statement said that UK, Asia and Continental Europe businesses all delivered double-digit growth in operating income and pre-tax contribution. Each grew their pre-tax contribution by more than 20% compared with a year earlier, with Continental Europe approaching growth of 100%.
"While the Switzerland business was, as expected, down on a year earlier, after a challenging 2012, there have been distinct signs of improvement, with a return to net new asset generation, and operating income and pre-tax contribution both running ahead of budget," the statement added.
The bank also revealed its plans to move its Zurich head office from Bahnhofstrasse to a prime property at Bleicherweg 8, very close to Paradeplatz and in the heart of Zurich’s financial district in the final quarter of this year.
