EFG International’s profit rises 6% in 2024, exceeding 2023 records, while acquiring Geneva’s Cité Gestion and increasing shareholder dividends.
EFG International, the Swiss banking powerhouse, has once again outdone itself, posting a remarkable profit surge in 2024 that eclipses even the lofty heights achieved in 2023. In a move that has sent ripples through the financial sector, the bank has also announced its acquisition of the Geneva-based private bank, Cité Gestion.
The numbers are impressive: net profit climbed by 6 percent, reaching a staggering 321.6 million Swiss francs last year. This financial windfall translates into tangible benefits for shareholders, who will see their dividends rise to 60 centimes per share, up from 55 centimes the previous year. EFG International remains steadfast in its corporate strategy for 2023 to 2025, with expectations to surpass its medium-term targets, as articulated in the bank’s recent statement.
In a testament to its robust performance, the asset manager has successfully accelerated the inflow of client funds, reporting net new money of 10.1 billion francs—an impressive leap from the 6.2 billion francs recorded the previous year. This influx corresponds to a remarkable 7.1 percent of assets under management, significantly exceeding the bank’s own target range of 4 to 6 percent. By the end of 2024, assets under management soared to 165.5 billion francs, reflecting a 16 percent increase year-on-year. This growth was bolstered not only by new money inflows but also by favorable exchange rate developments and a buoyant equity market performance.
On the operational front, EFG International achieved a commendable 5 percent increase in operating income, totaling 1.50 billion francs last year. While the interest business faced some headwinds, this was offset by a notable rise in commission and service income, as evidenced by the financial figures. Costs, however, did rise by 5 percent to 1.11 billion francs, largely attributed to increased personnel expenses. Nevertheless, the cost-income ratio improved slightly to 72.9 percent, a modest enhancement from the previous year’s 73.3 percent.
In a strategic move to bolster its client services, the bank welcomed 73 new client relationship officers (CROs) last year, with agreements already in place for an additional 16 consultants. This hiring spree slightly surpassed the bank’s own target range of 50 to 70 new hires. Notably, in 2023, EFG had onboarded 141 new CROs in the wake of the UBS/CS merger. Analysts had anticipated new money inflows of approximately 8.8 billion francs, and EFG’s figures exceeded these expectations, while net profit and dividend forecasts aligned closely with the AWP consensus.
As if the financial triumphs weren’t enough, EFG International also unveiled its acquisition of Cité Gestion, a private bank based in Geneva. This financial institution boasted assets under management of around 7.5 billion francs at the close of 2024 and recently reported a net profit of approximately 6 million francs. Cité Gestion, employing 130 individuals, operates not only from its Geneva headquarters but also maintains offices in Lausanne, Lugano, and Zurich, with a keen focus on ultra-high net worth clients across Switzerland, Western Europe, and Latin America.
EFG International’s impressive financial performance and strategic acquisitions position it as a formidable player in the banking landscape, demonstrating resilience and adaptability in an ever-evolving market.
