EFG: Record* profit of CHF 303.2 million (+50%) in 2023

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EFG International AG, Lugano
EFG International AG, Lugano
  • Net profit grew by 50% year on year to a record* CHF 303.2 million in 2023
  • Dividend of CHF 0.55 per share proposed for 2023, up 22% compared to 2022
  • Return on tangible equity** of 18.2% in 2023, compared to 13.4% in 2022, above EFG’s target range of 15-18%
  • Net new assets totalled CHF 6.2 billion, corresponding to a growth rate of 4.4%, within EFG’s target range of 4-6%
  • Hiring 141 new Client Relationship Officers (CROs), of whom 104 joined EFG in 2023 and have already contributed significantly to net new assets
  • Assets under Management totalled CHF 142.2 billion at end-2023, compared to CHF 143.1 billion at end-2022, reflecting the negative impact of the stronger Swiss franc, which more than offset net new assets and positive market performance
  • Cost/income ratio improved to 73.3% in 2023 (2022: 76.0%)
  • On track to deliver the previously announced annual cost savings of CHF 60 million by 2025 over a three-year period compared to the cost-base of 2021
  • Strong capital and liquidity position, with a CET1 Ratio of 17.0%, a Total Capital Ratio of 21.0% and a Liquidity Coverage Ratio of 230% at end-2023

  • * IFRS net profit for 2016 of CHF 339.3 million positively impacted by non-operating effects related to the BSI acquisition, specifically the “Bargain purchase on business acquisition” of CHF 530.8 million. The Bargain purchase on business acquisition reflects the difference between what EFG assessed to be the final purchase price for BSI of CHF 783.9 million, compared to the fair value of the net assets acquired on 31 October 2016 of CHF 1,314.7 million.
    ** For a full definition of Alternative Performance Measures, underlying results, reconciliations and all additional information, please refer to the full footnotes on page 7 of the FY23 media release.

Giorgio Pradelli, CEO of EFG International, commented: “Our record profit and our strong operational performance demonstrate that we are delivering on our strategy more rapidly than originally envisaged, which puts us a year ahead of plan. This strong start to the 2023-2025 strategic cycle is a testament to our well-diversified business model and the great commitment of our colleagues as we continue to navigate a volatile operating environment with many unforeseen developments that caused disruption both in Switzerland and abroad.

We made strategic investments in EFG’s future growth in 2023 by hiring a significant number of new Client Relationship Officers as we expanded our talent base to further strengthen our offering and reach. Our focus is now on putting our expanded capabilities and expertise to work to create additional value for our clients. While we are aware of short-term challenges in our operating environment, we remain confident about the outlook for our business and our ability to achieve scale, generate consistent financial performance and deliver attractive returns for our shareholders.”

Full ad hoc announcement and presentation slides
The full ad hoc announcement and presentation slides are available for download

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.

EFG International AG, Bleicherweg 8, 8001 Zurich, Switzerland

Important Legal Disclaimer
This document has been prepared by EFG International AG (“EFG”) solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any securities regarding EFG.

This release contains specific forward-looking statements that reflect EFG’s intentions, beliefs or current expectations and projections about EFG’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. EFG has tried to identify those forward-looking statements by using the words “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “seek”, “plan”, “predict”, “continue” and similar expressions. Such statements are made on the basis of assumptions and expectations which, although EFG believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause EFG’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and EFG’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. EFG and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in EFG’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

Copyright 2024 © EFG International AG

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