EFG International Achieves Record Profits
EFG International achieved a record profit of CHF 303.2 million ($343.8 million) even as profits in the Asia Pacific region dropped by 43% in 2023.
The Swiss bank highlighted that this 50% increase in group profit has put it a year ahead of its financial targets. However, the bank's leadership cautioned that 2024 might present more challenges, particularly due to planned investments in the business that are expected to impact profitability, though the bank still anticipates meeting its 2025 goals.
The bank's profits in the Asia Pacific (Apac) region declined to CHF 13.2 million from CHF 23.1 million the year before, despite attracting CHF 3.7 billion in new money. Operational expenses in the region increased by 7.8% to CHF 145.4 million, while the management of assets and revenue levels remained largely unchanged.
The Asia unit concluded the year with assets under management (AUM) of CHF 30.9 billion, slightly up from CHF 30.2 billion. On a broader scale, the bank saw a 50% profit increase, with a 13% rise in income to CHF 1.4 billion and a 4.4% growth in net new assets totaling CHF 6.2 billion. Operational expenses rose by 10% to CHF 1.06 billion due to increased staffing costs, even as total assets under management slightly decreased from CHF 143.1 billion to CHF 142.2 billion, a change attributed to the strengthening of the Swiss franc against inflows and market gains.
Reflecting the profit growth, EFG proposed a 22% dividend increase. CEO Giorgio Pradelli stated the bank's record profits and operational performance demonstrate the successful execution of its strategy, positioning it ahead of schedule.
EFG has been actively expanding its team of client relationship officers, notably hiring from Credit Suisse, which contributed to an increase in the bank's Asia staff numbers to 337 from 304. Worldwide, the bank recruited 141 CROs, exceeding its recruitment goal significantly. These new hires have already positively impacted asset inflows in the latter half of 2023, with expectations for this trend to bolster growth in 2024 and beyond.
Despite these advancements, EFG acknowledged that its business investments and ongoing digitalization efforts would incur costs. Nonetheless, the bank's leadership remains optimistic about its growth prospects and confident in achieving its 2025 profitability targets, despite anticipating 2024 to be a year focused on consolidating the costs associated with these strategic investments.
Recommended news