The acquisition fits with EFG's desire to grow via selective deals as well as via an organic route, the Zurich-listed firm said yesterday.

EFG International has completed its purchase of all of Swiss private bank Cité Gestion, as initially announced on 19 February this year.

The Zurich-listed firm said it has received all the required regulatory approvals for the deal. 

At the end of 2024, Cité Gestion managed around SFr7.5 billion ($9.4 billion) in assets and generated about SFr6 billion in net profit for the 2024 financial year. Headquartered in Geneva, it has about 150 employees and has an office in Lausanne and Zurich.

Its multi-custody platform serves ultra-high net worth individuals based in Switzerland, other countries in Western Europe, Latin America and the Middle East.

Under the terms of the strategic acquisition, Cité Gestion will continue to operate as an independent subsidiary, retaining its current name and governance.

EFG said it expects the transaction to be accretive to earnings per share by 2026. It is anticipated that the acquisition will lead to a reduction in its CET1 capital ratio of about 100 basis points. It gave no further details of the financial cost of the acquisition. 

“The acquisition of Cité Gestion further strengthens our position in our Swiss home market and represents an excellent cultural fit, expanding EFG’s domestic capabilities in wealth management. The acquisition is fully in line with EFG’s previously-announced M&A strategy,” Giorgio Pradelli, CEO of EFG International, said in a statement. “We want to complement our successful organic growth with targeted value-accretive acquisitions to further increase our scale in key markets around the globe.”

In other recent moves, Shaw and Partners Financial Services, the Sydney-based subsidiary of Zurich-listed EFG International, agreed to buy a 75 per cent stake in New Zealand-based Investment Services Group (ISG) for NZ$67.5 million ($40.7 million).