June 21, 2024

The financial group increases profits and dividends |  company financing

The financial group increases profits and dividends | company financing

(AWP) EFG Private Bank (EFGN 7.33 + 3.09%) In the past year, International has benefited from the good situation in the financial markets as well as from efficiency measures in the past few years and has increased its profits significantly. The bank was also able to record a good influx of new money.

Net income (IFRS) rose 78% to 205.8 million Swiss francs in fiscal 2021, the Institute for Asset Management announced Wednesday. “Basic” net profit, which does not include various special items, rose 47% to 167.8 million Swiss francs. Thanks to the transformation and simplification of the business, EFG has reached “new levels” in terms of profitability in recent years, CEO Giorgio Pradelli said in the statement.

EFG International shareholders must also participate in the outcome. You will receive a dividend of 36 cents a share from last year, 30 cents a year later.

Big increase in new money

The asset manager also managed to attract net new money of 8.8 billion Swiss francs. This corresponds to 5.5% of assets under management and thus was the upper end of the self-imposed target of 4 to 6%. Switzerland and Italy contributed the largest amount of new money, followed by the United Kingdom and Latin America. In contrast, EFG recorded a slight flux in the Asia Pacific region.

Assets under management amounted to 172.0 billion Swiss francs at the end of 2021. This was 8% higher than the previous year, but was the same in mid-2021. The increase in customer assets was curtailed by the exit of the retail business in Ticino and the sale of Odart in France ,

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With these numbers, EFG beat analysts’ expectations for both its dividend and dividend numbers. Only assets under management were below expectations.

New strategic plan

For the current year, CEO Bradley expects the overall positive environment to continue, despite the increased volatility in the markets in general. After lower interest rates are likely to have bottomed, EFG is expected to benefit from the shift. After the end of the current strategy period in the current year, the Egyptian Financial Group intends to present the new strategic plan 2025 on October 12, 2022.

As announced by the asset manager, Dimitris Politis will be appointed Executive Vice President at the beginning of March in addition to his duties as Chief Financial Officer.

The full history of EFG can be found here. »