EFG International net profit increases to CHF110.9m in 2013
EFG International made an IFRS net profit attributable to ordinary shareholders of CHF110.9m in 2013, compared with CHF103.1m for the previous year.
Excluding non-recurring charges (profit on the sale of EFG Financial Products, as well as legal, regulatory and other expenses), underlying net profit attributable to ordinary shareholders was CHF111.2m versus CHF124.5m a year earlier.
Operating income (excluding EFG Financial Products) was CHF666.0m, down five per cent from a year earlier – reflecting lower asset and liability management revenues, increased Tier 2 interest costs, and the absence of structuring transactions relating to large clients. After allowing for these factors, mainstream private banking revenues from continuing businesses were up five per cent compared with 2012.
Revenue-generating assets under management were CHF75.9bn, compared with CHF78.7bn at end-2012, but up five per cent after adjusting for exited businesses and reclassifications.
Net new assets from continuing businesses were CHF3.2bn (annual growth of 4.3 per cent), excluding the outflow of a low-yielding single stock position, compared with CHF3.0bn a year earlier.
Excluding Switzerland, which experienced a modest outflow in the second half, all other private banking businesses were positive in relation to net new assets.
The number of client relationship officers (excluding EFG Financial Products) stood at 435 at end 2013, up from 414 (407 excluding non-continuing businesses) a year earlier; and the pipeline is strong.
The Basel III BIS Capital Ratio stood at 18.0 per cent at end 2013, up from 15.9 per cent at end-2012.
John Williamson, chief executive officer, EFG International, says: “Private banking is experiencing challenging times, and our results last year were impacted by fragile client sentiment, particularly in the third quarter, and exceptional legal and regulatory expenses. But it is also a market of opportunity, and I am confident that EFG is well placed to capitalise on this. Our resetting phase is complete, and we are getting back onto the front foot, as evidenced by a recent small acquisition. Most of our businesses are well placed, CRO hiring has increased significantly, and the quality of earnings is much improved. We are focused on growth, evidenced by the number, range and quickening pace of growth-related initiatives. We are absolutely committed to delivering a step-change in growth and profits.”
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