Swiss private bank EFG International has concluded the integration of all operations of local rival BSI into its platform. The deal came to a close with migration of BSI’s Ticino business to EFG’s IT platform. The merger comprised 15 individual IT migrations this year. With the deal, EFG advances to one of Switzerland’s largest private banks, which 147.5 billion in assets under management as of October.
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.
EFG International said Italy’s central bank wants it out of Milan and Como in connection with alleged compliance weaknesses at recently-acquired Banca della Svizzera Italiana, or BSI.
The Zurich-based private bank, under Greek Latsis family control, referred it is in close contact with Banca d’Italia over the closing of its BSI acquisition, and in a statement late on Friday, it said: "EFG International announces that BSI has received a notification by Banca d’Italia requesting the implementation of certain measures, which may result in a closure of the BSI offices in Milan and Como."
EFG International completed the integration of Ticino’s private bank BSI, the bank it bought last year, according to a statement today.
With the transaction, BSI (Europe) was renamed into EFG Bank (Luxembourg). The company henceforth will use the EFG brand only. In Switzerland, almost all branches and offices have already been rebranded with the new logo. The rebranding of global locations will follow regional timelines.
Finally, the integration of the Swiss business of Banca Svizzera Italiana (BSI) into EFG Bank has been completed. From this moment, the majority of the customer relationships and employees of BSI are transferred, as EFG referred in a media release. The combined business will now be launched on the market under the name EFG.
EFG International said it completed the legal integration of "substantially all" of BSI SA’s Swiss business into EFG Bank AG, a 100 percent subsidiary of EFG International. The remaining BSI entities in Luxembourg and Monaco are expected to be integrated in the course of the second quarter of 2017, EFG said.
EFG International is gearing up for a battle with Brazil’s Grupo BTG Pactual SA over the value of BSI Bank, with the Swiss private bank now expecting to cut the purchase price by more than a quarter: it expects a downward adjustment of the estimated BSI purchase price of 277.5 million francs.
The bank cautioned this was "subject to BTG’s expected objection and, if necessary, verification by an independent expert".
The private bank that bought BSI last year reported IFRS net profit of 339.3 million Swiss francs ($336.27 million) in 2016, far ahead of the average estimate of 13.8 million in a Reuters survey of four analysts.
Swiss private bank EFG International plans to cut up to 450 jobs over the next three years as part of its takeover of BSI Bank.
The acquisition of Ticino-based bank from Brazil’s Grupo BTG Pactual SA has made EFG one of Switzerland’s biggest private banks, behind the likes of UBS, Credit Suisse, Julius Baer and Pictet. EFG announced its intention to acquire BSI in February and is currently integrating its assets, personnel and systems.
