Swiss private bank EFG International has posted a net profit of CHF31.5m for the first half of 2019.

This is a slump of 32% from last year’s profit of CHF46.4m. The fall was said to be due to legacy issues related to its life insurance portfolio.

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The bank’s underlying net profit was CHF75.6m for the half-year ended 30 June 2019, a 41% decrease from CHF129.2m in the previous year.

Operating income dipped 3% to CHF555.8m from CHF570.4m, while operating expenses dropped 5% year-on-year to CHF503.6bn.

Assets under management totalled CHF147.6bn at the end of June 2019, up 12% from the end of 2018.

The bank attributed the growth to the majority stake purchase in Shaw and Partners, and positive market conditions.

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Net new assets were CHF300m, driven by the UK and Continental Europe.

As of 30 June 2019, the bank’s Swiss GAAP CET1 ratio and total capital ratio were 17% and 21%, respectively.

Despite the profit slump, EFG confirmed plans for attaining profitable growth and capital deployment.

The bank targets cost/income ratio of 72-75% by 2022 and average net new asset growth of 4-6% over 2019-2022.

It also intends to return 50% of underlying profit to shareholders in the form of dividend payments.

EFG CEO Giorgio Pradelli said: “In March, we presented our 2022 strategic plan and have taken decisive implementation actions. This is reflected in our successful CRO hiring and the expansion of our international presence, as we are investing in targeted growth areas while improving our overall efficiency.

“Our results for the first half of 2019 mirror these efforts with several businesses showing positive trends – particularly in the UK and Continental Europe – while others are taking longer to pick up growth momentum.”