A major strategic review of EFG International
(EFG) will see the Swiss private bank cut staff by 10-15% over the
next 18 months, reduce its offices and booking centres
internationally and publicly list EFG Financial Products.

As a result of the business review, EFG, which
had 660 client relationship managers (CRMs) at the end of June, has
already cut staff numbers below 600 and expects further reductions
during the next 18 months.

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Underperformers and CRMs fulfilling client
support rather than relationship jobs are among those staff
affected.

 

Shutting offices globally

Staff reductions will also come as a result of
bank’s decision to close loss-making or marginal offices.

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The bank said it will focus on four core
regions: Continental Europe (including Switzerland), UK, Americas
and Asia.

EFG has already closed a number of offices in
Canada, and will close its sites in Dubai and Abu Dhabi – subject
to the regulatory approval.

However, the bank said it will continue to
target offshore and non-resident Indian business in the region.

EFG’s Swedish and Finnish subsidiaries are
also set to be shut with asset management and non-banking
operations transferred to Quesada, EFG’s wealth management boutique
in Stockholm.

Once, all the cuts are implemented, EFG will
embark on “selective new hiring”, the bank said.

 

IPO for EFG Financial
Products

The Swiss private bank has also earmarked EFG
Financial Products for an initial public offering with EFG
International reducing its stake from 57% to below 20%, with timing
subject to market conditions.

Following its restructure, EFG aims to grow
its net new money by 5-10% per annum, while reducing its
cost-to-income ratio to below 75% over the next three years.

EFG had CH80bn ($88.6bn) in AuM at 30 June
2011.