EFG: Record profit of CHF 147.6 million

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EFG International Zurich
EFG International Zurich

EFG International’s strong performance and business development momentum enable strategic investments in future growth.

  • Net profit grew by 47% year on year to CHF 147.6 million in 1H23
  • Return on tangible equity of 17.8%, compared to 12.7% in 1H22
  • Operating income increased by 20% to CHF 724.8 million while operating expense rose by 11% to CHF 527.7 million, reflecting strong hiring momentum and higher accruals for variable compensation
  • Increasing the scope for cost savings: CHF 60 million of expected annual cost savings from the Simplicity programme by 2025 (previously: CHF 40 million)
  • Cost/income ratio* further improved to 72.1% in 1H23 from 78.1% in 1H22
  • Net new assets totalled CHF 3.0 billion, corresponding to an annualised growth rate of 4.2%, within EFG’s target range of 4-6%. This reflects a strong rebound in asset inflows from April to June
  • Assets under Management of CHF 146.5 billion at end-June 2023, compared to CHF 143.1 billion at end-2022, driven by net new assets and positive market performance, partially offset by foreign exchange impacts
  • Strong capital and liquidity position, with a CET1 Ratio of 17.3%, a Total Capital Ratio of 21.2% and a Liquidity Coverage Ratio of 203%
  • Share buyback programme of up to 6 million shares over the next twelve month

Giorgio Pradelli, CEO of EFG International:
„We have entered our new strategic cycle from a position of strength. EFG delivered a record operating performance in the first half of 2023, taking our profitability to the next level. This improved profitability is a result of the consistent and successful execution of our strategy, and is underpinned by our resilient and diversified business model. Together with our strong and liquid balance sheet, this allowed us to benefit from supportive market conditions during the first six months of the year. We delivered our ninth consecutive semester of net new asset growth with an annualised growth rate within our target range due to a significant rebound in net new assets in the second quarter of 2023. Our strong profitability, increased competitive market position and a promising net new asset pipeline allow us to seize strategic opportunities to accelerate our growth momentum and achieve scale. This includes our increased efforts to hire key talent across functions and regions, with 75 new Client Relationship Officers joining the bank, as well as our targeted investments in our digital capabilities, content innovation and our brand. Together with our continued focus on efficiency, these initiatives will help to drive our growth momentum in the second half of the year and beyond.“

EFG International AG

About EFG International
EFG International is a global private banking group offering private banking and asset management services and is headquartered in Zurich. EFG International›s group of private banking businesses operates in around 40 locations worldwide. Its registered shares (EFGN) are listed on the SIX Swiss Exchange.

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