EFG International AUM has reached an all-time high of $187bn (CHF170bn) at the end of March 2021, up by CHF11.2bn from CHF158.8bn at the end of December 2020.
The Swiss wealth manager attributed the growth to strong net new asset inflows, positive foreign exchange effects as well as favourable markets.
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Highlights
EFG reported net new money of CHF1.6bn in Q1 2021. This said to translate to an annualised net new asset growth rate of 4%, at the lower end of its 4 to 6% target range.
The company cited Switzerland and Italy as the main sources of growth and said the UK, Continental Europe and the Middle East also generated ‘solid inflows’ during the Q1.
Underlying operating income also grew, compared to both Q1 2020 and Q4 2020, driven by ‘strong levels of client activity’.
The revenue margins were ‘slightly weaker’ while the cost/income ratio remained flat compared to the second half of 2020, the company said.
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By GlobalDataEFG CEO Giorgio Pradelli said that the company is on track with the execution of its 2022 strategic plan.
Pradelli said: “EFG’s good growth momentum and continued strong profitability in the first quarter are evidence that the revenue management and cost reduction measures we introduced are taking effect and creating operating leverage.
“Given the acceleration of net new asset inflows in April and the sustained high levels of client activity that we have seen, I am confident that we can continue on this positive trajectory going forward,” he added.
Board changes
EFG Group founder Spiro Latsis has decided to not stand for re-election to the board of directors. Niccolò Burki, the company’s current vice-chair of the board, will also not stand for re-election.
Meanwhile, John Latsis, who is a member of the board since 2018, will continue to be on the board.
Earlier this month, the company agreed to sell its minority stake in Asesores y Gestores Financieros to the Spain-based private bank’s management team.
This deal, scheduled to complete in the first quarter of 2022, is expected to minimise EFG’s AUM by nearly CHF13bn.
According to the wealth manager, the deal will also have a slightly positive impact on its revenue and cost metrics, and add a further 90 basis points to its CET1 ratio.
