Swiss private bank EFG International has posted a net profit of CHF22.3m for the first six months of 2016, a slump of 53% compared to CHF48m a year ago.
The bank’s operating income in the first half of 2016 was CHF341.7m, down 3% compared to the first half of 2015, due to decline in net banking fee and commission income of 8%.
Net interest income and net other income improved slightly compared to the first half of 2015, the bank said in its earnings statement.
Operating expenses were CHF298.6m, versus CHF296m in the first half of 2015. Underlying operating expenses (excluding non-recurring costs) were CHF292.5m, compared to CHF291m in the year ago half.
Revenue-generating assets under management (AuM) were CHF80.6bn as at the end of the first half of 2016, down from CHF83.3bn at end-2015.
The underlying private banking business achieved stable results: Core operating income remained flat at CHF318m compared to CHF315.5m a year ago. The revenue margin was 84 bps, slightly better than the margin in the second half of 2015, which was at 83 bps.
The group’s cost-income ratio on a reported basis was 8 6.9 %, up from 83.3% a year before. Underlying cost-income ratio was 8 4.9% in the first half of 2016, versus 8 3.5% in the first half of 2015.
The number of client relationship officers (CROs) stood at 424 at end-June 2016, compared to 462 at end-2015.
Excluding the CROs hired in the first half of 2016, AuM per CRO stood at CHF197m at end-June 2016, up 10% since 2012 and the highest level reached since the business review in 2011.
EFG International CEO Joachim Straehle said: “In the first half of 2016, the financial services industry faced strong headwinds and uncertainties in the markets worldwide. In this environment, we achieved resilient results in our core private banking business, sharpened our focus on CRO performance and productivity and made very good progress in our cost reduction programme, that we already announced last November.
“Most importantly, we are progressing well with regard to the business combination with BSI, which will create a strong private bank that provides us synergies and the necessary scale in this challenging environment. I am convinced about our forward momentum and potential for future growth, therefore I expect the positive trend to be reflected in our results in the second half of 2016.”