Market Turmoil Hits EFG Revenue as Rich Cut Back on Tradingby
Revenue declined in the first quarter as client activity falls
Shareholders approve $520 million capital increase at AGM
EFG International AG, the Swiss private bank controlled by billionaire Spiro Latsis, said revenue fell in the first quarter as clients cut back on investing amid global market turmoil. The shares fell.
New money from clients was “disappointing,” the Zurich-based company, which is seeking to buy Grupo BTG Pactual’s BSI SA, said in a statement on Friday. The firm didn’t provide figures for revenue, margins or net new money.
EFG was down 1.8 percent to 5.99 Swiss francs at the close of trading in Zurich. The shares have plunged about 41 percent this year after profit fell in 2015.
EFG is expanding as it seeks to compete with larger Swiss wealth managers Julius Baer Group Ltd. and Credit Suisse Group AG. The BSI deal will create the fifth-largest Swiss-based private bank by assets under management, if regulatory approvals are granted and BSI clients decide to move over to EFG.
EFG has implemented half of a 30 million franc ($31 million) cost-reduction program announced in November, according to the statement.
Investors at the annual general meeting on Friday approved a 500 million franc capital increase at a price of at least 6.12 francs a share to pay for the purchase of BSI. EFG’s controlling shareholder, the Latsis family’s EFG Bank European Financial Group, has committed to invest 271 million francs in the rights offering.