Swiss private bank EFG International admits openly to benefitting from Credit Suisse's difficulties.

In recent months, EFG has poached dozens of Credit Suisse workers and will continue doing so, board chairman Alexander Classen said in a «Le Temps» interview (in French, behind paywall).

So far, few banks have been as outspoken about recruiting staff from the troubled bank. The Zurich-based financial institution planned to hire 50 to 70 client advisors this year, with Classen saying «We will likely exceed this target».

Window of Opportunity

While other banks are watchful in how they address the situation of the rival bank, Classen said «the window of opportunity» was still open for about a month.

With the legal takeover of Credit Suisse by UBS scheduled to complete by June 2023, this is roughly the time it will take Credit Suisse employees to know what will happen to their jobs. Out of the last 50 client advisors that EFG International hired in the first quarter of 2023, 30 to 40 percent were former Credit Suisse employees, Classen said.

Lifting Annual Growth

Classen replaced Peter Fanconi as EFG International's chair last October. At the same time former Julius Baer CEO and ex-Pictet partner Boris Collardi, entered the scene, investing an estimated 80 million Swiss francs ($89 million) in EFG International. Collardi now also sits on the bank's board of directors.

The institution is working on a three-year strategic plan, which envisages lifting its annual growth in assets under management to 6 from 4 percent as well as reducing the cost/income ratio to 69 percent from the current 75 percent.

Takeover Target or Consolidator in Swiss Banking

Currently, the firm manages approximately 150 billion Swiss francs in client assets. Family-owned EFG International is repeatedly seen as a takeover target or a consolidator in the Swiss wealth management banking industry.

Considering his reputation as a highly-dynamic and entrepreneurial financial professional, Collardi's entry supports the idea of a transaction taking place at some point.