ZURICH, July 24 (Reuters) - Swiss private bank EFG International said on Wednesday net profit grew by 10% to a record 162.8 million Swiss francs ($182.7 million) in the first half of 2024, posting target-beating asset inflows over the period.
EFG said inflows had reached 5.2 billion francs by the end of June for an annualised growth rate of 7.3%, exceeding its target range of 4‑6%, as CEO Giorgio Pradelli said the bank aimed to pursue acquisitions if conditions are right.
"Over the next few months, we will leverage our extended platform to translate the strong net new asset inflows that we are now seeing into higher revenues and into a further increase of our profits," Pradelli said in a statement.
Shares in EFG were seen rising by more than 2% in Julius Baer premarket indications following the results.
During a media call, Pradelli said EFG had set three criteria for making acquisitions, including seeking them in locations where EFG is already present and ensuring a "cultural fit" in terms of managing client relationships.
"Third, we want a return on investment over three years of 10%. So the acquisition must be accretive," he said.
Pradelli said EFG had reached the midpoint in its 2023-2025 strategic cycle and was one year ahead of its plan.
Assets under management increased 12% to 159.3 billion francs by the end of June from 142.2 billion at the conclusion of last year, EFG said. Return on tangible equity was 19.2% in the first half, up from 17.8% in the same period last year.
The bank said 42 new client relationship managers had joined in the first half. Most of the new inflows logged during the January to June period came from client managers EFG had hired in the past two years, Pradelli said.
($1 = 0.8910 Swiss francs)
Writing by Dave Graham; Additional reporting by Oliver Hirt; Editing by Ludwig Burger and Jan Harvey
Source: Reuters