EFG International has announced restructuring plans which include a 10% to 15% reduction in headcount and the closure of several offices over the next 18 months.

Date: Oct 21, 2011

Tags: EFG

EFG International has announced restructuring plans which include a 10% to 15% reduction in headcount and the closure of several offices over the next 18 months.

According to an official statement, EFG will take significant steps to address under-performing and non-core activities, as it had various missteps in recent years including investments in non-private banking activities, overly-ambitious targets and sub-optimal cost management.

Said John Williamson, chief executive officer of EFG International: “We have drawn a line under past mistakes and are resetting the business, improving cost effectiveness and positioning it for future growth based on what we do best: private banking. I want us to be a leading independent private bank, with highly-satisfied clients and entrepreneurial client relationship officers.”

To lower costs and simplify complexity, the bank will reduce the number of booking centres and offices, along with cutting 10 % to 15% of staff over the next 18 months.

Given the firm said its private banking business remains competitive and profitable, the bank will focus on its four core regions for growth: Continental Europe (including Switzerland), the UK, the Americas and Asia.

Going forward, EFG is looking to achieve net new assets in the range of 5% to 10% per annum, and a reduced cost-income ratio to below 75% over the next three years.