EFG International was in step with other Swiss private banks by posting strong first-half profits, but it stood out from the crowd in one particular respect.

EFG International managed to triple its first half profits year on year as well as achieving considerable net inflows and it managed to do so with less staff, its results published Wednesday  show.

Almost Like Independent Asset Managers

The number of customer advisors, or Client Relationship Officers as they are called at EFG in relations to the net new inflows is very revealing about how the bank is developing.

Since the start of the year EFG has taken on 36 new CROs, taking the total to 545 (excluding the 206 at Australian subsidiary Shaw and Partners). However, the bottom line is that there are 22 CROs fewer, some of whom did not meet the bank’s exacting performance standards or who were cut when it divested from Oudart in France and its retail business in the southern Swiss Canton of Ticino.

Boost to Client Ledgers

The remaining 545 CROs managed to increase their average customer ledger by 24 percent to 294 million Swiss francs ($320 million).

As of June 30 EFG employed at total of 3,019 people compared with 3,127 a year earlier.

These efficiency gains go hand in hand with various cuts and extraordinary adjustments. In the first half of 2021, EFG succeeded in divesting a legacy portfolio of life insurance policies. The divestments in France and Ticino combined with the sale of its Luxembourg fund manager as well as its stake in Spanish private bank A&G also bolstered EFG’s earnings.

End to Booking Assets in Guernsey

The cost/revenue ratio also fell to 79.6 percent in the first half from 87.3 percent a year earlier. EFG intends to transfer customer assets booked in the Channel Island tax haven of Guernsey to other centers in the second half of the year.

All these measures, should mean the bank is well placed for the coming months, even if CEO Giorgio Pradelli did not make any specific statements about the second half in the press release.

Surprise Departure from Board

There is a surprising change to EFG International’s board. Ilan Hayim is stepping down from his positions as a member of the Supervisory Board and the Nomination Committee. Hayim was only elected at an extraordinary general meeting in autumn 2020.

However, sources say he will remain on the board of EFG Bank European Financial Group. This is the largest shareholder in EFG International and is backed by the Greek-Swiss Latsis family which holds 44 percent.