EFG International grows its business with net profit up 22%

In 2020, private banking group EFG International significantly grew its business with a marked acceleration in profitability, especially in the second half of the year, and demonstrated its operational and financial resilience against the backdrop of the pandemic.

EFG accelerated its growth momentum with its strongest Net New Asset inflows in a decade of CHF 8.4 billion ($7.6 billion) for the full year, corresponding to a growth rate of 5.5 per cent.

Assets under Management increased to CHF 158.8 billion (€143.8 billion) from CHF 153.8 billion (€139.3 billion) at end-2019, as strong asset inflows and positive market effects offset adverse foreign exchange impacts.

IFRS net profit increased by 22.4 per cent to CHF 115.3 million (€104.5 billion). There was a strong acceleration of profitability in the second half of 2020, as effects from revenue and cost management measures materialised. Net profit more than doubled compared with the first half of 2020 and underlying cost/income ratio improved to 78.2 per cent.

EFG continues to rationalise its footprint and to optimise the operational set-up of its eight core offshore booking centres.

EFG maintained strong capital and liquidity positions, with a Swiss GAAP Common Equity Tier 1 ratio (which compares a bank’s capital with its assets) of 16.2 per cent, Total Capital Ratio of 19.9 per cent and a Liquidity Coverage Ratio of 188 per cent.

In January 2021, EFG further strengthened its capital position as it successfully placed $400 million of Additional Tier 1 Notes and bought back approximately 50 per cent of outstanding Tier 2 Notes.

The proposed dividend of CHF 0.30 per share (€0.27) will be unchanged from last year.

Giorgio Pradelli, CEO of EFG International: “In 2020, as the global spread of the coronavirus sparked uncertainty around the globe, our teams showed great commitment and strength as they adapted to these new circumstances and continued to put our clients first. We invested in enhancing our digital capabilities to ensure a high level of connectivity and supported our clients with our extensive expertise and tailor-made private banking services. This is also reflected in our results, as we accelerated our net new asset growth momentum and boosted profitability.

Despite continued pressures on net interest income, our core business performed well – especially in the second half of the year. We expect to see similar trends going forward, as we continue to invest in growth
initiatives and enhance our operational efficiency.”