Shares in EFG International saw an increase on Wednesday following the company’s announcement of a higher net profit for the first half of 2023. The Swiss private bank revealed a rebound in asset inflows from April and also disclosed its plan to buy back 6 million of its own shares as a capital reduction strategy.
Financial Highlights
- Net income for the first half reached 147.6 million Swiss francs ($170.9 million), up from CHF100.3 million in the same period last year.
- Operating income for the period grew to CHF724.8 million from CHF603.9 million.
- Assets under management amounted to CHF146.5 billion, showing an increase from the beginning of the year but a decline compared to the previous year’s figure of CHF155.8 billion.
- Net new assets for the first half totaled CHF3 billion, driven by a strong rebound in inflows from April to June.
Challenging Macroeconomic Environment
EFG International acknowledged the current macroeconomic environment, characterized by heightened uncertainty in the global banking sector and volatile markets. These factors led to subdued asset inflows, particularly in the first quarter of the year as some clients across different regions deleveraged their portfolios.
Capital Reduction Strategy
To reduce capital over the next year, EFG International announced its plan to repurchase up to six million of its own shares. The buyback, based on Tuesday’s closing price of CHF10.44, would be valued at approximately CHF62.6 million.
