Updated February 21st, 2024 at 19:43 IST

Swiss bank EFG International reports record profit

Despite a slight decline in assets under management, the figures were slightly below analysts' estimates.

Reported by: Business Desk
Swiss bank EFG International reports record profit  | Image:Reuters Photo
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Swiss bank records profit: EFG International, the Swiss private bank, announced on Wednesday a significant milestone with a 50 per cent surge in annual net profit to 303.2 million Swiss francs ($344.35 million), marking a record for the institution. The bank also expressed its openness to utilising excess capital for potential mergers and acquisitions.

Despite a slight decline in assets under management to 142.2 billion francs from 143.1 billion francs at the end of 2022, the figures were slightly below analysts' estimates due to the strength of the Swiss franc.

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Increased dividend in 2023

EFG International proposed a 22 per cent increase in its 2023 dividend to 0.55 per share. CEO Giorgio Pradelli commented, "We are delivering on our strategy more rapidly than originally envisaged, which puts us a year ahead of plan... We are on a good trajectory to meet and probably exceed our 2025 ambitions."

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The bank's CFO, Dimitris Politis, indicated that EFG has been actively seeking meaningful acquisitions, focusing on the private banking space, which aligns with its core business.

The bank's shares rose by 4.7 per cent in Zurich following the announcement. EFG reported money inflows of 6.2 billion francs for the full year, with net new assets of 5.2 billion in the first 10 months.

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EFG International has been targeting high-net-worth clients, hiring 141 new relationship managers last year, with a significant portion coming from Credit Suisse. The bank's recent takeover of Credit Suisse teams in exclusive ski resorts demonstrates its commitment to expanding its client base.

In a separate development, EFG nominated digital expert Prasanna Gopalakrishnan to join its board of directors, succeeding Bernd-A. von Maltzan, who opted not to stand for re-election.

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(with Reuters inputs)

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Published February 21st, 2024 at 19:43 IST