EFG profit slides in Q1

Swiss private bank EFG International expects to hit its target for attracting net new assets from wealthy clients in 2019, Chief Financial Officer Giorgio Pradelli said on Wednesday.

Zurich-based EFG, which bought Bank BSI last year, has a medium-term target of 3-6 percent net new money growth, applicable once it has completed the BSI integration.

The bank said its net profit slipped nearly 14 percent to 19.2 million Swiss francs in the first six months, hit by hefty fees after buying BSI last year as well as a hit from life insurance products and legal costs.

Overall, EFG posted a 19.2 million franc IFRS net profit for the first six months of the year, beating an analyst poll estimate for a 15.6 million franc loss.

"We believe for next year we should expect no attrition (of assets from the takeover of BSI), hopefully then a good development, most probably still below target or at the low end of the target," Pradelli, who is also deputy CEO of the bank, told a news conference for EFG's half-year results.

The Swiss private bank is attempting to swallow BSI after the Ticino-based private bank was ensnared in the 1MDB scandal mid-way through the acquisition process. At the same time, EFG is dealing with the fallout from a serious scandal of its own in Italy.