Lower net interest income was more than offset by significantly higher fee and commission income at Swiss private bank EFG International which led to record profits in the first half of 2024.

EFG International’s net profit grew 10 percent year-on-year to reach a record 162.8 million francs ($182.7 million) in the first half of 2024, according to the bank’s financial results. 

Operating income rose 3 percent to 743.8 million francs as significantly higher income from banking fees, commission, and other income more than offset lower net interest income. Operating expenses increased 4 percent to 549.4 million francs, driven mainly by higher personnel costs.

NNA Growth, CRO Hires

Net new assets (NNA) grew at an annualized rate of 7.3 percent to 5.2 billion francs. Combined with positive market performance and supportive foreign currency movements, assets under management increased 12 percent to 159.3 billion francs.

In terms of personnel, EFG International saw 42 new client relationship officers (CRO) join in the first half of 2024 which it described as a normalized hiring momentum. The bank has also agreed or made offers to hire an additional 19 CROs who have yet to join. This compares to its ambition to hire an average of 50 to 70 CROs per year. At the end of June 2024, the total number of CROs grew to 707 compared to 693 at end-2023.

Ahead of Plan

According to EFG International CEO Giorgio Pradelli, the bank has reached the middle of its 2023-2025 strategic cycle and is «one year ahead of our plan». The plan includes the aim of achieving an annual net new asset growth rate of 4-6 percent, a revenue margin of 85 basis points, a cost/income ratio of 69 percent, and a return on tangible equity of 15-18 percent.

«For the second half of the year, we are fully focused on deploying our expanded capabilities and expertise,» Pradelli commented. «Over the next few months, we will leverage our extended platform to translate the strong net new asset inflows that we are now seeing into higher revenues and a further increase of our profits.»