The Swiss group has become leaner, cut costs and improved its overall profitability, it said today. It has also spun off some businesses and repositioned itself in certain markets.

EFG International today reported a net profit of SFr167.8 million ($182.1 million) for 2021, rising from SFr114.4 million a year ago; operating profit rose to SFr236.5 million from SFr189.9 million, the Zurich-listed firm said today.

The profit was achieved on the back of a rise in operating income to SFr1.185 billion for 2021, from SFr1.114 billion in 2020, the firm said in a statement. Higher net banking fees and commissions more than offset lower interest income. Operating costs rose to SFR967.9 million from SFr951.5 million. The underlying cost/income ratio of EFG narrowed to 79.9 per cent from 82.7 per cent.

The net profit result included several non-underlying items, such as a SFR51.6 million gain from EFG’s legacy life insurance portfolio, including a large positive effect from a settlement with Transamerica; SFr6.1 million in legal costs and provisions relating to legacy matters, and a SFr7.5 million intangible amortisation charge.

“We have reached a new level of profitability in 2021 and see strong momentum. Our capital-light business model supports growth and generates excess capital to the benefit of our shareholders. We have executed our strategy consistently and have become a leaner, more agile and more scalable organisation with a lower cost base,” Giorgio Pradelli, chief executive of the group, said.

Revenue-generating assets under management rose to SFr172 billion from SFr158.8 billion, Net new assets stood at SFr8.8 billion, up from SFr8.4 billion.

Last year EFG sold its Oudart private banking management business in France, its Ticino-based personal and corporate banking business, and its fiduciary subsidiary, EOS, in Italy. The firm has also closed its Guernsey booking centre and sold its Luxembourg fund management company. EFG said it was closing its Milan operations by the middle of 2022 and has agreed the sale of its stake in the Spanish bank A&G. The A&G deal, which is expected to close in the first half of this year, will cut EFG’s overall assets under management by SFr13.1 billion. Additionally, EFG intends to merge its subsidiary Patrimony 1873 into its Swiss business this year. 

As announced in November last year, EFG has agreed to buy all the remaining minority stake of 25 per cent in its Australian subsidiary Shaw and Partners, which means that it now owns all of it.