Swiss private bank EFG International is marking time. Its growth prospects are limited, and rumor has it that the majority shareholder is unhappy with his investment.

Shareholders and investors weren’t thrilled at EFG International’s first-half earnings. The shares extended their six-month decline.

The Zurich-based private bank is marking time. Profits are crumbling, new money growth is hardly worth talking about, and CEO Giorgio Pradelli expects further outflows and restructuring costs in the second half of the year. The only progress is with the planned cost savings following the takeover of the Ticino-based private bank BSI.

Investor Unhappy 

John Latsis

This is not enough – apparently not even for John Spiro Latsis  (pictured, left) who recently joined the board, and who as a third-generation member is charged with overseeing and boosting the considerable assets of the Greek-born family.

Rumors have long circulated in Zurich that John Latsis, and his 72-year-old father Spiro Latsis, who sits on EFG’s board, are unhappy with returns. The Latsis family hold 44 percent oft he private bank through their Luxembourg-based EFG Bank.

The bank declined to comment on the rumors.

Sale vs Change in Control

Recent years have been tough for the private bank and have brought little joy for shareholders. The muddled takeover of BSI under CEO Joachim Straehle almost ended in a fiasco.

Even though the BSI takeover could have propelled EFG to a global wealth management player in a single stroke. However 142 billion francs aren’t sufficient to fulfill this requirement.

The bank will have to find other ways of growing, which is also part of the strategic plan. This will mean though it will have to tap shareholders – this after they had been dragged through the BSI purchase, which had involved a significant contribution from the Latsis family.