Reports
Pre-Tax Profit Dips At EFG International, But Underlying Results Improve
Switzerland’s EFG International, which has been through an overhaul to boost long-term profits, reported a net profit of SFr53.1 million ($53.3 million) in the first half of 2012, down from SFr55.9 million a year earlier.
The underlying net profit rose by 33 per cent to SFr74.1 million when non-recurring expenses were excluded. Operating income stood at SFr409.1 million, up 3 per cent, and the revenue margin was 104 basis points (95 bps for the same period last year), the Zurich-listed bank said in a statement.
EFG International has shed a number of business units, closed offices, and let some staff go to improve profitability after some earlier poor results. Meanwhile, earlier this week, the major shareholder in EFG International, called EFG European Financial Group, said it had removed its 43.5 per cent share holding in the Greek commercial bank, EFG Eurobank Ergasias. The move is aimed to bury misconceptions about Greek exposures of EFG International. In recent months, its issued a number of statements rebutting suggestions that it had a serious problem in Greece.
Among other details in today’s results, EFG International said revenue-generating assets under management were SFr76.5 billion, down by 4 per cent on a year earlier and down 2 per cent compared to end-2011, primarily reflecting the impact of businesses being exited as a result of EFG International’s business review.
Net new assets for continuing businesses were SFr1.2 billion, which translates into annualised growth of 3.2 per cent, a drop from SFr2.7 billion a year earlier but a “significant improvement on the second half of 2011”, the firm said.
The number of client relationship officers fell to 503 at the end of June, a fall from 660 a year earlier, as the company cut costs to restore profitability.
The bank’s BIS Capital Ratio stood at 15.1 per cent at end-June, up from 12.9 per cent at the end of last year.
“Good progress has been made in relation to the business review, which is on track to deliver anticipated financial benefits. The process of resetting is largely complete, and the focus is now on optimising and growing the business,” EFG said.
