EFG International has just released its half-year financial results for the first six months of 2024.

EFG International, the Zurich-listed group, said yesterday that net profits grew by 10 per cent year-on-year to a record SFr162.8 million ($184 million) in the first half of 2024.

The firm's operating income rose by 3 per cent year-on-year to SFr743.8 million, because higher net banking fee and commission income and higher net other income more than offset lower net interest income. Compared with the second half of 2023, EFG’s operating income rose by 5 per cent, the bank said in a statement.

Net new assets totalled SFr5.2 billion, corresponding to an annualised growth rate of 7.3 per cent, compared with EFG’s target range of 4 to 6 per cent.

Shares in EFG were down 0.59 per cent yesterday. The bank is one of a cluster of medium-sized Swiss banks which also operate in places including Asia, the Middle East, US and UK. A few weeks ago, rumours circulated that the firm might merge with fellow Swiss bank Julius Baer. (It appeared that story was unfounded, and neither bank commented when asked about it. This news service's editor wrote about the episode here.)

Regional growth
All EFG’s business regions recorded net inflows. The Asia-Pacific region recorded net new assets of SFr2.4 billion in the first half of 2024 with strong performance in all locations. particularly in Australia. The Latin America Region generated SFr1.5 billion of net new assets, followed by the Swiss and Italian region with SFr1.0 billion. The continental Europe and the Middle East recorded SFr500 million and the UK reported SFr200 million of inflows. EFG’s funds' business experienced outflows of SFr400 million.

Assets under management also increased by 12 per cent to SFr159.3 billion at end-June 2024, compared with SFr142.2 billion at end-2023, reflecting strong net new assets, positive market performance and supportive foreign currency movements, the bank continued.

There was a return on tangible equity of 19.2 per cent in the first half of 2024, compared with 17.8 per cent in 2023, exceeding EFG’s target range of 15 to 18 per cent. There was also a cost/income ratio of 72.6 per cent in 2024, compared with 74.4 per cent in 2023.

“We delivered a record profit in the first half of 2024 and accelerated our growth momentum. Our consistent net asset inflows are a testament to the strength of our bank and the trust that clients place in us and our expertise; they also show that the investments we have made in 2023 are bearing fruit,” Giorgio Pradelli, CEO of EFG International, said.

“Our top-line result was resilient, as higher assets under management and increased client activity offset the decline in net interest income,” he added.

“For the second half of the year, we are fully focused on deploying our expanded capabilities and expertise. 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 into a further increase of our profits. We have now reached the midpoint in our 2023 to 2025 strategic cycle and are one year ahead of our plan,” he said.