The Swiss firm, which operates in several regions, including Asia, logged a strong set of earnings results in the first six months of 2023.

EFG International, the Zurich-listed group, yesterday said that its net profit rose 47 per cent in the first six months of 2023 reaching SFr147.6 million ($170.9 million). 

Operating income rose by 20 per cent to SFr724.8 million while operating costs rose by 11 per cent to SFr527.7 million, reflecting strong hiring momentum and higher accruals for variable compensation, it said in a statement. 

The group said it logged a return on tangible equity of 17.8 per cent, widening from 12.7 per cent a year earlier.

EFG International said that its cost/income ratio narrowed to 72.1 per cent in the first half of 2023 from 78.1 per cent from a year earlier.

Net new assets totalled SFr3.0 billion, corresponding to an annualised growth rate of 4.2 per cent, and inside EFG’s target range of 4 to 6 per cent. The firm said asset inflows strongly rebounded from April to June. Total assets under management rose to SFr146.5 billion at the end of June from SFr143.1 billion at the end of December 2022.

“We have entered our new strategic cycle from a position of strength. EFG delivered a record operating performance in the first half of 2023, taking our profitability to the next level. This improved profitability is a result of the consistent and successful execution of our strategy, and is underpinned by our resilient and diversified business model,” Giorgio Pradelli, CEO of EFG International, said. “We delivered our ninth consecutive semester of net new asset growth with an annualised growth rate within our target range due to a significant rebound in net new assets in the second quarter of 2023.”

The CEO said the firm’s financial strength meant that it was able to hire 75 new client relationship officers in the reporting period and, along with other measures, would be able to drive growth momentum for the rest of 2023, and further ahead.

At end-June 2023, EFG’s Common Equity Tier 1 ratio, its capital buffer measure, was 17.3 per cent, up from o 16.6 per cent at 1 January and 14.7 per cent at end-2022. This increase was mainly driven by the reclassification of a portfolio of financial assets, which was announced on 22 December 2022 and took effect at the start of the year. 

The Liquidity Coverage Ratio was 203 per cent, it added.