EFG's profit for the year rose, as the wealth manager's spending cuts took hold. It hired far more private bankers than expected, and assets rose accordingly.
The Swiss-based private bank's net profit climbed to 94.2 million Swiss francs ($96.3 million) last year, from 70.3 million francs in 2018, EFG International (EFG) said in a statement on Wednesday. It plans to pay out a 0.30 franc per share dividend for the year.
While income stagnated, weighed by a drop in trading as well as interest income, EFG kept a lid on its spending, which fell six percent. The spending cuts came against a backdrop of copious hiring last year: EFG said it either hired, signed, or approved the recruitment of 181 private bankers in 2019 – more than it had told investors to expect.
«In 2020 and going forward, EFG will focus on maintaining its positive momentum, building on the highest risk and compliance standards, in order to drive profitable and sustainable growth and deliver its 2022 strategic plan,» it said in a statement.
Digested BSI Deal
Assets also climbed and EFG reversed 2018's withdrawals: overall funds rose more than 17 percent to 153.8 billion francs. Its private bankers took in 5.2 billion francs in fresh money from clients – this corresponds to a 4 percent growth rate against existing assets.
The bank appears to have digested its 2016 acquisition of Banca della Svizzera Italiana or BSI. The deal proved more costly and troublesome for EFG than anticipated because the Ticino-based bank became mired in the 1MDB scandal.
EFG is also periodically the subject of speculation over its ownership, by Greece's wealthy Latsis shipping family with Brazil's BTG Pactual as a major shareholder as well. CEO Giorgio Pradelli last month sought to assure investors that the bank enjoys the Latsis' backing.
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