The management of a Spanish bank owned by the Swiss wealth manager will buy out the unit. The two private banks will continue to cooperate.
Zurich-based EFG is selling a 40.5 percent stake in Spanish private bank Asesores y Gestores Financiaros, or A&G, to its management, it said in a statement on Monday. Financial details of the buyout weren't disclosed.
EFG had been looking for a buyer for its remaining minority stake in A&G, which it bought in 2007 from Banque Cantonale Vaudoise, for some time. It had reduced its ownership from 56 percent to a minority stake seven years ago.
Profit Fillip
EFG said the change in ownership will allow A&G to be led locally, to widen its range of strategic options, and to better foster its further growth in the Spanish private banking market. A&G will continue to draw on EFG’s product suite and international network.
Specifically, A&G will distribute EFG's New Capital funds in Spain, specialized corporate finance advice and other activities. EFG expects the MBO, to be concluded by the first quarter, to «marginally improve» its revenue and cost-income ratio this year, as well as slightly boost net profit and add roughly 90 basis points to its hardest component of capital, CET1.
