ZURICH, Feb 19 (Reuters) - EFG International, a Swiss financial institution, announced on Wednesday a 6% increase in net profit to 321.6 million Swiss Francs ($356 million) for 2024, compared to the previous year. The company also revealed its acquisition of the Swiss private bank Cité Gestion.
EFG reported a growth in net new assets to 10.1 billion francs, reflecting a 7.1% increase, surpassing EFG's target range of 4-6%. This positive performance led CEO Giorgio Pradelli to express optimism about the upcoming year, stating, "We are well ahead of our original plan and are confident we can exceed our 2025 ambitions." Pradelli mentioned plans for the highest-ever dividend per share payout.
Following EFG's strong financial results, the market responded favorably, with the company's stock surging nearly 4% initially, which later moderated.
EFG's acquisition of 100% of Geneva-based Cité Gestion, managing around 7.5 billion francs of assets, is expected to conclude in the second half of 2025, pending regulatory approval.
Cité Gestion's website indicates it has a workforce of 150 employees.
With this acquisition, EFG's total assets under management (AUM) are projected to reach around 175 billion francs, and Cité Gestion recorded a net profit of approximately $6 million last year. Pradelli anticipated the deal would enhance earnings per share by 2026.
In November, EFG expressed interest in potential acquisitions, with Pradelli indicating the company's openness to further opportunities in alignment with its M&A strategy.
(1 Swiss Franc = $0.9025)