Zurich-based private bank EFG International reported an 89 percent fall in first half net profit, while client assets under management were down 17 percent on the previous year.
Zurich-based private bank EFG International reported an 89 percent fall in first half net profit, while client assets under management were down 17 percent on the previous year.
The bank suffered from large-scale redemptions and one-off costs at its hedge fund and fund of hedge fund businesses, although reiterated its commitment to both. Following a year of aggressive hiring in 2008, EFG also had to scale back considerably on staff costs in the first half, and announced the closure of 7 representative offices.
The bank booked a six-month profit of SwFr 20 million, compared with SwFr 178.7 million for the first half of 2008. Figures for the first half of 2009 were impacted by a one-off charge of SwFr 33 million. Of this, SwFr 18.8 million related to CM Advisors, the fund of hedge funds business it acquired in 2006. A further charge of SwFr 14.4 million was booked when the firm had to adjust a US dollar hedge on its life insurance policy portfolio at the end of February 2009.
Related
During the first half, the bank added SwFr 4.7 billion in inflows from private clients and losing SwFr 2.5 billion from hedge-fund related institutional client outflows. Client assets under management stood at SwFr 80.4 billion at end-June, up 7 percent from the end of 2008, but down 17 percent from the end-June 2008.
For further details, visit thewealthnet
Content from our partners
