EFG shares jump 3% following record profitability
Reuters
Published Nov 16, 2023 04:12AM ET
ZURICH (Reuters) - EFG International shares were up 3% early on Thursday after the Swiss private bank reported net profit of more than 240 million Swiss francs ($270.09 million) for the first 10 months of the year and expanded its share buyback program.
EFG reported 5.2 billion Swiss francs in net new assets for the year to date and said it had seen a positive impact from the more than 130 new client relationship officers (CROs) it has hired in 2023.
The bank's share price has risen more than 11% this year, and hit a year-high of 10.98 Swiss francs on Nov. 1.
"Several of our new CROs have already started to contribute meaningfully to asset inflows in the year to date, and we expect this trend to continue and to significantly accelerate our growth momentum in 2024 and beyond, given the strong pipeline of net new money," CEO Giorgio Pradelli said.
The bank said profitability in the 10-month period was a record.
The new money inflow corresponds to a growth rate of 5.2% since July, which represents good momentum. This is likely to accelerate further, Zuercher Kantonalbank analyst Michael Klien said.
EFG also said it will buy back up to 3 million additional shares by the end of April next year due to its strong capital position. This is on top of its existing commitment to repurchase up to 6 million shares by Sept. 11, 2024 .
At 144.1 billion Swiss francs, assets under management were only slightly higher than the 143.1 billion francs at the end of 2022. According to EFG, the growth in net new assets was largely offset by negative currency effects.
($1 = 0.8886 Swiss francs)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.