Half-year profits for EFG's private banking and wealth management business in Asia Pacific were down 23.3 percent from the sixth months prior.
The Zurich-based wealth manager posted a profit of 10.6 million Swiss francs ($11.36 million) in the region after taxes for the first half of 2020, down from 13.3 million francs in the previous half-year period, according to financial statements released on Wednesday.
Globally, its private banking and wealth management business posted a 33.2 million franc gain, compared to the overall group’s 37.4 million francs. The bank saw net new assets grow by 4.2 billion francs – an annualized growth of 5.5 percent, though it fell by 600 million francs (-3.9 percent annualized) in Asia Pacific.
A year ago, the bank recorded a 4.2 million franc loss in Asia Pacific for the same period amid deleveraging driven by investor uncertainty, with net outflows of around $508 million in the region.
As of the end of the half, EFG in Asia had 28.2 billion francs in assets under management and 292 full-time employees, down from 31.5 billion francs and 308, respectively, at end-2019.
APAC Boost
During the half, the bank increased its 51-percent stake in Australian financial service provider Shaw and Partners, acquired in 2019, to 61 percent, and said it expects to cement three-quarters of the boutique next year, as part of its plan to increase its presence in target markets.
At the same time, it will sell a Chile business and its French onshore subsidiary, Oudart, as well as leave Guernsey.
Group Profit Grows
Despite the ongoing coronavirus pandemic, the bank achieved profitable growth while continuing to implement its 2022 strategic plan, which focuses on sustainable growth and implementing cost reduction measures to further improve profitability and mitigate pressure on revenues, according to EFG CEO Giorgio Pradelli.
Overall, the group's first-half net profit rose 3.3 percent to 34.8 million Swiss francs ($37 million), driven by a spike in commissions and fees in March and April.
The trading-fueled boom masks darker clouds looming in the form of margins eroding due to traditionally bulky banking structures, as finews.asia reported on Monday, following rival Julius Baer's report.
